Balancing the Budget and Embracing Change at Syracuse University

We stand at a pivotal moment, one that demands both fiscal responsibility and an unwavering dedication to our core principles. It’s a time to celebrate success and also to address the necessity of a financial and operational recalibration. Let’s start with a moment of congratulations. The National Championship Women’s Ice Hockey Club team recently clinched the AAU championship. This accomplishment shines a light on student-athletes’s success. Their victory is a testament to their hard work, commitment, and the support that a great athletic program has.

We are working through the budgeting for next Year. It’s been a tough and hard process to work through, but, we are going to work for a balanced budget. This rigorous process in our University is not new, but it’s the amount of problems we are going through, that makes it new. We had a balanced budget in FY24, which closed nine months ago. Now, we are currently operating with a balanced budget in FY25, set to conclude in approximately three months. With the fiscal year’s end drawing near, our confidence in maintaining a balanced budget strengthens. Proposing a balanced budget for FY26 is our paramount objective, and my confidence in achieving this goal remains steadfast.

My concerns in August prompted proactive discussions within the University leadership and with the deans. We needed those conversations because we saw the road ahead. If we had maintained our course without adjustments since last August, a 3% budget deficit, translating into millions of dollars, would have been a tough task to go through. However, failing to address such a deficit humanely and effectively would call into question our financial stewardship as a community. Fortunately, preparedness, and forward-thinking, is something that we have.

Over recent months, we have diligently planned our response to this fiscal challenge. However, we found new problems in this journey, especially with the recent developments within the federal government over the past 60 days. These events have been remarkable. Almost most, if not all, peer Universities have been forced to make unprecedented administrative decisions. You’re seeing news from Universities like Johns Hopkins, who are laying off thousands of staff. The news is also talking about hiring freezes, freezes of graduate admission. I believe more Universities will continue do this. Behaving this way can look safer for them.

Strategic Positioning and Proactive Measures Amidst Challenges

I would like to address the ESFAO Committee in the importance to know Syracuse is in a different position. We are fortunate enough not to have an academic medical center that is heavily dependent on federal funds. Our funding sources differ, in a good way, from our peer Universiites. We are not as reliant on NIH and NSF funding, which have seen the most significant changes. This unique circumstance gives us an advantageous position. It also builds on years of us being financially responsible. We have been planning for an extended period of time. This mean we are NOT going to have large lay-offs. We’re not going to have across-the-board hiring freezes. We’re not going to have deep budget cuts or other drastic measures in graduate programs. This does NOT mean to not be responsible. We want to make a plane land with a balanced budget.

Basically, what we’ve been doing since August is, we are asking every single school in the University to identify efficiencies and bring forth new ideas. Ideas that make their resources aligned. It does not mean there will be no changes, but, they will be consistent. To have a plane land is a calling for the people to have trust in the process.

The official presentation to the Board of Trustees committees, preceding the full board meetings in May, signifies a crucial juncture. The overarching goal is to present a balanced budget proposal for FY26. It’s going to be both sensible and humane, and there’s going to be opportunities to talk about it before it’s finalized. We are in an interesting position.

Addressing Evolving Federal Policies with Care and Thoughtfulness

I don’t want to downplay the difficulty of the changes coming from the Federal Government over the past couple months. I don’t want to communicate complacency in what I’ve said already. The Department of Education has lost half of it’s workforce, and has been launching investigations related to antisemitism. They are not the only ones, but, they are the most significant one. Many higher education institutions are facing investigations related to antisemitism and racism by the Department of Education.

Syracuse University has NOT been investigated. However, our peers are and we are closely monitoring those other institutions. Columbia Unviversity is under investigation and we are watching it with close attention. We are making sure that we are closely monitoring what we do with fincancial funding.

On March 6, the faculty, students, and staff received a communication from Provost Lois and me and others regarding new guidance from the Department of Education’s Office of Civil Rights. Broadly speaking, that the position of consideration of race in anyway is discrimination and a violation of Title XI. That new policy went into effect on Feb. 28, two weeks after it was first communicated. The broad interpretation of this is going to be challenged in court.

We are aware of the situation. Syracuse University will comply with the law. We believe our programs do not discriminate against any group. We need to be careful and make sure that we do our best to respond in the best way possible.

Embracing Change and Upholding Core Values

We have Mary Grace Almandrez, who is helping in a university-wide effort to determine our path forward with the new guidance. We want to consult with faculty,staff, and students on the matter. We still embrace the core value that we are a university that is welcoming for all.

We anticipate further changes from Washington in the coming weeks, potentially impacting accreditation processes. The support and cooperation in the recent months has been huge. I want to thank you. You need to hang in there. Thank you.

Embracing the Future: Ongoing Commitment and Collaboration

As we traverse this period of transition, our commitment to open communication and collaboration remains. We are looking forward to engaging with student, faculty, and staff in the coming weeks and months. We have to address the challenges and shape a bright future for Syracuse University. We are blessed to be in this situation, with a balanced budget.

This shows the result of us being steadfast in our commitment, and staying true to our mission. We need to welcome and collaborate with all ideas that students, faculty and staff have. This will ensure that Syracuse University remains a beacon of academic excellence.