Dear Colleagues, 

We continue to navigate through an uncertain and challenging time for higher education, which is affecting our planning of Temple University’s operating budget for the coming fiscal year. The overall impact of federal funding changes, tariffs and other actions is still unknown, and therefore we must take an even more cautious approach moving forward.  

We began the current fiscal year with a projected $85 million budget deficit. Thanks to several strategic measures, including the elimination of more than 150 administrative staff vacancies, careful use of one-time reserves and a hiring review process introduced in fall 2022, we have made significant progress, but the university still has a significant structural deficit. 

This deficit, coupled with the present uncertainty facing higher education, has led us to implement a series of short-term and long-term measures that will allow us to continue to close the budget gap. Beginning immediately, we will be reinstating a hiring review process for all staff positions. Departments seeking an exemption must submit an exception request form. Additionally, we will be implementing a travel review process for all nonessential staff travel. 

Departments will also be required to identify reductions in spending, and the starting point for that will be 

• limiting discretionary purchases,  
• working with vendors to reduce costs,   
• having Purchasing Services approve any transaction that exceeds $10,000,  
• evaluating nonessential academic travel, and 
• assessing overall spending patterns to find efficiencies and savings. 

Finally, no capital project should move forward unless it is essential to the ongoing operations of the university. The Office of the Senior Vice President and Chief Operating Officer will be following up with department heads to provide additional details related to budgetary actions. 

On the hopeful side, new student enrollment increased this past fall, and we see positive indicators for fall 2025 as well. This is critical, given that tuition and the commonwealth appropriation account for 84% of the university’s operating revenues. A focus on developing additional revenues, through new online degree and certificate programs and launching the fundraising campaign, will be essential. 

Beyond these short-term measures, the university must also explore longer-term strategies to eliminate the structural deficit and generate a positive operating margin which can be reinvested in the academic enterprise. This process will be an integral component of our forthcoming refresh of the 2022 strategic plan. 

We understand that uncertainty is difficult and challenging. Please know that we remain committed to consistent communication as we guide Temple through this complex landscape. 

Sincerely, 

John Fry
President 

Ken Kaiser 
Senior Vice President and Chief Operating Officer

Gregory Mandel 
Senior Vice President and Provost