Stage I: Administrative Areas

FY2026 BUDGET DEVELOPMENT

Dear Colleagues,

This memo officially launches the Fiscal 2026 budget development process. This year, we invite departments to take a fresh, comprehensive approach to analyzing their operational needs, building their budgets from the ground up. By doing so, we aim to equip senior leadership with a deeper understanding of resource requirements across the University, ensuring that our resource allocation is both strategic and aligned with our institutional goals.

Background:

In past years, Boston University has operated under an incremental budgeting model. This approach utilized the previous year’s budget as the base for the new year’s budget. Departments were asked to submit any increases or decreases to this base, reflecting changes in expenses and revenues. While this offers simplicity and stability, it may not always allow for optimal strategic alignment or thorough scrutiny of expenditures as the department evolves.

Transition to Strategic Budgeting:

This new approach will require each department to build their budget from the ground up, starting from zero, and detailing all expenses, as if they were being proposed for the first time. We encourage department leaders to identify areas where resources can be better aligned with strategic priorities and higher-impact areas, ensuring optimal support for essential functions and initiatives. This transition will be facilitated carefully by the Budget & Planning Office and will require your insights about the general needs of the department, projections and benchmarking data to evaluate sufficient staffing levels when compared to peer institutions, operational efficiencies including the potential integration of Artificial Intelligence (“AI”), and avenues for revenue growth, if applicable.

Our strategic budgeting approach requires detailed justification and prioritization of all expenditures. By starting from zero, it ensures that resources are allocated efficiently and aligned with current organizational goals and priorities.

Attached PDF includes Appendices, prepared by the Budget & Planning Office:

• Appendix A: General Principles for the Strategic Budgeting Approach

• Appendix B: Timeline and Steps for Fiscal 2026 Budget Submission

The Budget & Planning Office will also host training sessions and provide opportunities to address questions and ensure that submissions meet expectations.

Our commitment to strategic budgeting will accelerate the university’s progress by ensuring that every dollar is strategically allocated to maximize impact. This approach will enhance our ability to adapt to emerging opportunities, drive innovation, and support our mission of excellence in education and research. Together, we will build a stronger, more resilient future for Boston University.

For your reference, we’ve created a new landing page for this Strategic Budgeting and welcome any feedback.

Nicole Tirella, Senior Vice President for Financial Affairs, Chief Financial Officer, and Treasurer

Maria Cruz, Associate Vice President for Budget & Planning