Update on Financial Outlook
Dear Colleagues,
I am writing today to provide an update on our financial outlook and share the steps we are taking to ensure Boston University continues to thrive. Despite an overall positive financial position, as we look to the future it is essential that we slow spending and focus our resources on our highest priorities.
Historically, our budgeting approach has allowed us to build strong reserves and invest in critical priorities, such as faculty hiring, financial aid, and infrastructure. However, as I communicated in my State of the University message, this year, due to several factors—including the Student Information System implementation, graduate enrollment shortfalls, increased cost of labor, and inflation—we anticipate that our year-end reserves will fall short of our budget target and similar pressures will carry forward into the next fiscal year. Additionally, the new and evolving regulatory environment has created economic uncertainty and potential budget pressures.
In response, we have introduced new fiscal controls and are asking that everyone evaluate how they can reduce spending and use resources more efficiently. Nicole Tirella, our Chief Financial Officer and Treasurer, will oversee this process. I want to stress that Boston University continues to have a strong financial foundation. These spending controls are necessary to ensure that BU continues to be financially sound and that we are able to remain focused on our core mission in the months and years ahead.
These times call on us to sharpen our strategy, increase operational excellence, and identify activities and practices that no longer serve us. I encourage each of you to stay focused on what matters most—our people, our work, and the impact we make on the world. Thank you for your ongoing commitment to Boston University. I remain optimistic about the future, knowing that our greatest asset—our people—will drive our continued success.
Warm regards,
Melissa Gilliam
President