Stage I: Administrative Areas

FY2027 BUDGET DEVELOPMENT

Dear Colleagues,

As you read in the university message, University Budget Outlook and Sustaining Our Future, we are navigating through significant challenges that require immediate attention. The University’s fiscal performance and financial stability is threatened by many uncertainties, including but not limited to:

• Enrollment shortfalls: indicators suggest that we collectively did not meet our graduate enrollment target
• Inflationary environment: expenses are growing faster than our revenue
• Labor contracts: contracts that strain our budgetary commitments in the short term
• Federal research and F&A recoveries: continued government shutdown and potential legislative changes would hinder our ability to support our research infrastructure

To avoid a deficit, our immediate goal is to reduce spending in FY2026. Overall, we need to identify $30 million in non-recurring savings from the University budget for this fiscal year. We will be reaching out directly and working with unit leaders to identify specific savings by Friday, November 14th.

As we begin planning for FY2027, we do so during a time of continued domestic and global economic uncertainty stemming from inflation, interest rate fluctuation, and national politics. Units should be developing long-term strategic plans to improve their operations and ways to leverage University-wide initiatives—such as AI, convergent research, and other affiliations or partnerships. We ask that spending remain prudent and disciplined throughout FY2026 and when developing your FY2027 budget submissions. While we are actively pursuing new sources of revenue, we are asking you to fund any new initiatives or positions from existing resources.

Each administrative area should submit a budget narrative, not to exceed 5 pages, inclusive of exhibits, providing insight into your unit’s priorities now and over the next 3-5 years. Narratives should include:
– opportunities for long-term savings and ways of reducing redundancies,
– identify challenges or areas of concern you see in the coming years, and
– outline how you are managing your existing resources to align with the University’s strategic framework.

FY2027 Stage I Budget Submissions are due Friday, October 24th
– Instructions for the online tools (Integrated Planning – IP) to be used to submit your Stage I are located on the Budget website. If you would like a refresher training session or are new to the online submission process, please contact your Budget Analyst.
– Please note that the FY2027 recurring budget is as of September 30, 2025.
– All memos should be returned via e-mail to budgen@bu.edu. Please feel free to contact your Budget Analyst directly for assistance or guidance with this process.

We know this exercise will be challenging, and we are grateful for your collaboration and partnership. By working together, sharing ideas, and exploring innovative approaches, we are confident that we can navigate these financial challenges and position the University to thrive.