Dear Colleagues, 

As I first shared in December, the Responsibility Center Management (RCM) budget model was a regular topic of discussion during my initial meetings with faculty and staff colleagues. Since then, a Steering Committee has led a comprehensive review of the RCM budget model, supported by experts from the National Association of College and University Business Officers, and informed by extensive campus engagement—including stakeholder interviews, data analysis and benchmarking against peer institutions. 

The review process has shown that the RCM model has limited our ability to advance institutional priorities, in some cases has impeded collaboration and it does not effectively align resources with our long-term goals. It has become clear that a different approach—with clear incentives and accountability—is needed to position Temple to navigate demographic and financial headwinds while also being effective in carrying out our teaching, research and service work.  

I have accepted the Steering Committee’s recommendation to sunset the RCM budget model. Over the next year, we will design and implement a new budget model to take effect on July 1, 2026. This new model will better reflect our values, simplify resource allocation, encourage revenue generation and enable greater transparency in institutional investments. Some highlights of the new budget framework include

• A centrally coordinated base budget allocation that will ensure stability and align with our updated strategic plan. 
• Targeted incentives to support growth in high-priority areas, including research innovation, student success and interdisciplinary collaboration. 
• Greater clarity and better and more regular communications.  

As we work to implement the new model over the next year, we will be focusing on three coordinated initiatives: budget model design; academic and administrative program review; and leadership development and engagement. Through this process, we will utilize the expertise of faculty and staff across the university’s schools, colleges and units. Our approach will always be guided by transparency and focused on collaboration.  

Operating budget update 

I also want to provide an update on the university’s operating budget for our new fiscal year, which began on July 1. As I shared in June, we are facing a number of significant financial challenges, related to both our current structural deficit and uncertainty at the federal level. 

Thanks to the thoughtful and diligent efforts of colleagues from across the university, we have made significant progress in the first year of this multi-year process, reducing the deficit for this year’s budget from an original projection of $60 million to $27 million. This was accomplished in large part through the elimination of approximately 190 positions across the university, with the vast majority of these coming through attrition, retirement or elimination of vacant positions. 

Decisions like this are not easy, and they are not made lightly. Please know that considerable efforts were made to ensure that the reduction to our current workforce was as minimal as possible. In total, approximately 50 employees at the university will be impacted, which represents just under 1% of the university’s total workforce. It is my promise that care will be taken to ensure that any employee’s separation from the university will be handled as equitably and compassionately as possible. 

Federal impact update 

The budget reconciliation bill was signed into law on July 4, which will bring significant changes to the federal loan program and Pell grant eligibility beginning in 2026–27. We are closely monitoring the impacts of this and other recent developments at the federal level. Earlier this summer, I shared that we would be forming a broad-based advisory group comprising faculty, staff and students to help us navigate this complex and evolving environment. I am pleased to share that the following individuals have accepted my invitation to serve on this advisory group:  

• Jodi Bailey Accavallo, Vice President for Student Affairs 
• Mike Bognanno, Professor and Department Chair, Economics, College of Liberal Arts; Vice President, Faculty Senate 
• David W. Brown, Assistant Dean for Community and Communications, Klein College of Media and Communication 
• Marylouise Esten, Vice President and Deputy Provost 
• Cameron Etezady, Vice President and University Counsel 
• Jason Gallagher, Clinical Professor, School of Pharmacy 
• Michael Gebhardt, Vice President for Administration and University Secretary 
• Josh Gladden, Vice President for Research 
• Nyein Nyein Htay, PhD candidate, Department of Policy, Organizational and Leadership Studies, College of Education and Human Development 
• Angela Polec, Vice President for Strategic Marketing and Communications 
• Sumona Sharma, Undergraduate Student, Department of Finance, Fox School of Business 
• Susan Sullivan, Assistant Professor, Department of Political Science, College of Liberal Arts 
• Renee Tobin, Dean of the Graduate School    

While we do face many challenges, my optimism about this university remains as strong as ever. As you may have seen, as of July 1, Temple had received 6,313 undergraduate deposits from first-year admitted students, the most in the institution’s history. This is heartening news, as it indicates we are on track for the second straight year of an increase in the first-year class. We are projecting a slight increase—approximately 200 students in total—to our overall enrollment as well, the first growth in total enrollment since 2017. 

It will still take two to three years before we expect to see a meaningful increase in the university’s overall enrollment, but our progress is a great indicator that we are well on our way. I am thankful to the Division of Enrollment Management as well as faculty and staff members across our many schools and colleges who have helped set us on this path to success. I look forward to joining you all in welcoming the Class of 2029 to campus next month. 

Sincerely,   

John Fry   
President