Budget Update

As discussed at our September 11 town hall, we are responding to the FY2026 holdback of state funds by reducing discretionary operating expenses and realizing additional salary savings by restructuring positions and deferring hiring actions. This requires additional scrutiny of all personnel actions through the OAR framework.

Last week, Idaho State University and other state agencies were notified that the 3% one-time holdbacks for FY2026 are now permanent, affecting FY2027 and beyond. This ongoing budget cut, coupled with a maintenance-only budget, creates more headwinds for us in designing a balanced budget plan for FY2027. 

Our Budget Advisory Group is actively working on revenue and expense forecasts and scenarios and we will be engaging the University community in dialogue and discussion over the next several weeks and months as we formulate a plan for FY2027 and beyond. Please be on the lookout for upcoming communications and opportunities for engagement. 

We will continue to focus on our mission, our students, and our strategic priorities as we also work through these budget challenges. As was seen during a very successful ISU Celebration Week, there is much to be excited about as we go boldly forward.