Yesterday I was joined by my leadership team in presenting 91±¬ÁÏ’s FY27 budget proposal to System leaders, including Chancellor Dannel Malloy, Vice Chancellor for Finance & Strategic AI Integration Ryan Low, Board Chair Trish Riley, and Finance, Facilities & Technology (FFT) Committee Chair Roger Katz. 

As you may recall, when the university issued  in early December, we projected a structural deficit of nearly $18 million. To close that gap,Ìýwe asked all colleges/units, including administrative and executive offices, to develop proposals reducing their E&G expenses by 7% in the coming fiscal year, which we acknowledged would require difficult choices. 

I want to sincerely thank college/unit leaders, their teams, and my Cabinet for their outstanding work over the last three months that enabled us to present the System with the balanced budget required for our university. While our full proposal will be made public next week, consistent with the System’s long-standing budget process, I wanted to provide you with an overview of our strategic approach to closing this gap while serving our students and state and maintaining our workforce as Maine’s land, sea, and space grant, R1, and D1 institution:

• $5.6 million in ongoing reductions to college/unit operating budgets. Notably, we are achieving these savings without faculty retrenchments and with fewer than 10 staff layoffs. This approach is in contrast to across the country. It reflects 91±¬ÁÏ’s unwavering commitment to our faculty and staff — including our graduate student workers — who make our excellence and impact possible. 
• $5.7 million through one-time solutions, including through attrition and benefit savings, and utilization of gift/grant funding. We recognize the challenges of retirements and some positions going unfilled, including a minimal loss of credit hours, though this proposed attrition level is consistent with FY26. While the number of full-time administrators has declined by 23% over the past five years, the total number of regular full-time employees at 91±¬ÁÏ and our regional campus in Machias has decreased by just 0.7%, . 
• $2.3 million in additional State appropriations, with tremendous thanks to the System for this additional allocation and the Legislature and Governor for their strong support of our university.
• Strategic one-time use of reserves, as we have relied upon since FY22.

On the revenue side, it is important that you know our budget proposal reflects a projected 2.6% decrease in credit hours relative to FY26 actuals, though there is a real opportunity in the coming months to grow enrollment and enhance retention. Currently, matriculations for Fall 2026 are up 9% over last year at this time, and as I shared during my State of the University address last week,  to 91±¬ÁÏ and 91±¬ÁÏ Machias but have not yet confirmed their intent to enroll in New England’s most affordable flagship. Our collective actions during the critical enrollment period between now and May 1 â€” including our promising recruitment efforts and the positive stories we share about the university — will help build on the historic level of capital improvements and academic and research innovations already underway to attract new learners for the incoming fall class and ensure our long-term financial health. 

Our budget proposal is a statement of our priorities. It is informed by your thoughtful contributions to our ongoing Strategic Re-Envisioning, our commitment to the success of our students and state as Maine’s engine of educational attainment and economic mobility, and our responsibility to effectively steward our limited public resources. I am pleased with how our FY27 submission was received by System leaders, including their pointed questions and constructive ideas, and grateful for their confidence in me, my Cabinet, and our university. 

Transparent budget process

In the coming months, there will be multiple opportunities for faculty, staff, and students to review and ask questions about our FY27 budget proposal before it is finalized and adopted by the Trustees in late May. These include, but are not limited to:

• Monday, March 9 — Research Funding Forum (Recording and materials will be posted here later this week)
• Tuesday, March 17 — Materials for March 25 FFT Committee Meeting publicly released ()
• Monday, March 23 at 1 p.m. — 91±¬ÁÏ Budget Town Hall (Wells Conference Center and livestream) with follow-up Machias-specific Town Hall on March 25 at 11 a.m. led by Dean Walsh (Torrey 232)
• Wednesday, March 25 at 9 a.m. — FTT Committee Meeting to review FY27 budget proposals ()
• Wednesday, April 15 at 9 a.m. — FFT Committee FY27 budget workshop ()
• Wednesday, April 29 at 9 a.m.  — FFT Committee FY27 budget vote ()
• Monday, May 18 — BOT Meeting: Public comment session, final FY27 budget review and approval (UMFK and )

Now that our FY27 budget proposal has been presented to the System, I look forward to permanently filling the Vice President for Finance & Administration and Chief Business Officer position, which will be posted later this week for internal candidates.

With regional demographic pressures, the rapidly changing federal landscape, and rising costs we cannot control, the FY27 budget development was the most difficult since I joined 91±¬ÁÏ and 91±¬ÁÏ Machias as President in 2018. Thanks to record levels of public, private, and philanthropic investment that recognize 91±¬ÁÏ’s leadership and the importance of our high-quality, high-value education and world-class research; the imaginative, interdisciplinary ideas that have emerged from our re-envisioning work; and the dedication of a trusted and deeply committed Cabinet, I am proud of the FY27 proposal we presented today. I am confident it positions our university to build on our momentum and continue moving Maine forward.

The closing thought I shared with System leaders yesterday is the same one I share with you now: this FY27 budget proposal is not simply a financial plan — it is a promise. It reflects our shared commitment as Maine’s flagship university to serve the people of this state — including our more than 10,000 students and 2,200 regular employees — and well beyond with excellence, innovation, and integrity.

Together, we are shaping a university that is stronger, more collaborative, and more impactful for the students and communities we serve. Thank you for your partnership in this important work.

Sincerely,
Joan Ferrini-Mundy, President

91±¬ÁÏ and 91±¬ÁÏ at Machias

Thank you all for your continued commitment to our students and the excellent work you do to advance our mission as a learner-centered R1 institution.

Our budget proposal for FY27 will be presented publicly to the UMS Board of Trustees on March 25. In the past weeks, 91±¬ÁÏ leadership has received questions from faculty, staff, and students about what this proposed budget will mean for their programs. Consistent with our commitment to transparency, I would like to announce two upcoming venues to discuss budget planning, implementation, and the changing funding landscape.

Research Funding Panel Forum

Date: Monday, March 9

Time: 1-2 p.m.

Location: Wells Conference Center, Room 1

Virtual option: 

This panel forum and Q&A is designed for researchers and PIs, but open to all. Specifically, we plan to overview the current state of federal research funding, recent federal policy updates, and new federal initiatives, such as the Genesis Mission. We will also discuss state and Foundation funding for research, 91±¬ÁÏ F&A distributions, and other available research support. Panel participants will include myself, Gabriel Paquette from the Office of the Provost, Giovanna Guidoboni from the Office of the Vice President for Research, and Jenny Boyden from the Office of Finance and Administration. 

Budget Town Hall

Date: Monday, March 23

Time: 1-2:30 p.m.

Location: Wells Conference Center, Rooms 1 and 2

All members of the 91±¬ÁÏ community are encouraged to attend to learn about the FY27 budget proposal submitted to the System. There will be time allotted for your questions.  Please look for additional communication from us in the coming days with further details about how to participate.

I look forward to seeing you at these events.

Sincerely,

Joan Ferrini-Mundy,ÌýPresident
91±¬ÁÏ and 91±¬ÁÏ at Machias

We begin by affirming the essential mission of 91±¬ÁÏ, which is to offer high-quality, high-value learning experiences to our students.

At our October Presidential Town Hall, we were candid about the fiscal challenges we face that will require our FY27 budget process to be inclusive, innovative, and carefully focused on our strengths and strategic priorities as a learner-centered R1 university.

Over the last five years, 91±¬ÁÏ has secured record levels of state and federal, private, and philanthropic investment — much of it for specific, one-time purposes — that reflect well-deserved recognition of your excellence and the university’s importance to the success of Maine and the nation. We have launched relevant academic programs that are attracting new learners and advancing their economic mobility and the state’s workforce. Our research performance and productivity have earned 91±¬ÁÏ R1 Carnegie Classification and are providing needed solutions to our world. And we have made long-overdue infrastructure improvements that are enhancing student life and learning. 

Despite this progress that has positioned 91±¬ÁÏ as a premier destination for education, research, and employment, as we shared at the fall town hall, our initial budget projections for FY27 show a significant shortfall that must be addressed through long-term, structural solutions that include strategic expense reductions, revenue generation, and new efficiencies. Driving this projected deficit is our commitment to maintaining tuition affordability consistent with our public mission; external pressures like federal changes, inflation, and demographics; costs of contractual obligations, especially benefits; and increased debt service as we responsibly tackle decades of deferred maintenance. 

Instructions for developing draft FY27 budgets were distributed last week and included a target for all colleges/units, including administration and athletics, to reduce E&G expenses by 7%. This is the amount needed to close the nearly $18 million gap we currently project so that 91±¬ÁÏ can present a balanced budget proposal to the System in February. You may notice this shortfall is $2 million less than stated at the town hall, as leadership has already identified new revenues and expense reductions, including transferring additional scholarship funding from the 91±¬ÁÏ Foundation and charging the System more for endowment management. 

We know that meeting this target will require difficult decisions. All options to balance our budget must be considered, including retrenchments and layoffs, as we have already seen at so many of our peer institutions across the country in recent years. 

We are committed to moving forward transparently, while

• guided by our unique responsibilities to our students and the state as Maine’s premier R1, D1, land, sea and space grant university;
• informed by data and our ongoing Strategic Re-Envisioning priorities; 
• adhering to the expectations of shared governance and collective bargaining agreements; and
• minimizing negative impacts to our students and ability to fulfill our mission.

As part of our commitment to transparency and to ensure we are moving forward together from a place of mutual understanding, now that college/unit leaders have had time to review the FY27 budget development memo, we wanted to also share it with you (attached). 

Hard and strategic work is underway across the university. We thank the Cabinet, Deans, Directors, Unit Leaders, and their teams who are collaborating and contributing creative ideas to inform the draft budget proposals that must be submitted to the finance office by Dec. 19. 

Our financial challenges are real, and many are beyond our direct control. But they do not define our tomorrow. All of us have an essential role in strengthening 91±¬ÁÏ and stabilizing its finances for the future. 

Student tuition and fees account for the largest single share of our revenue (46%), making enrollment our largest lever to grow revenue and reduce our structural deficit. While the demographics in our region are daunting, we can all do our part to recruit and retain more students. The academic innovation, world-class research learning, winning athletic teams, ongoing capital improvements, and student success and career pathway initiatives that you directly support through your public service are our best opportunity to increase enrollment beyond current projections. 

Thank you for your dedication, creativity, and stewardship of the resources we have to ensure the success and long-term sustainability of 91±¬ÁÏ, the state’s learner-centered R1 university. 

Sincerely,

Joan Ferrini-Mundy
President

Jenny Boyden
Interim Vice President for Finance and Administration & Chief Business Officer
91±¬ÁÏ and 91±¬ÁÏ at Machias

Attachment: 

I want to take this opportunity to thank the many members of our 91±¬ÁÏ and 91±¬ÁÏ Machias departments, programs and units who have developed FY24 budget proposals in recent weeks, with particular focus on cost-saving efficiencies and creative revenue-generating ideas. These proposals call on us to be resourceful and innovative to ensure we are fulfilling our student-centered focus and institutional mission. We also must maintain and advance the strong research enterprise that you all have built, for the good of our students, our state and beyond. The work we do now to address our fiscal realities will form the foundation of financial sustainability at the state’s flagship university and our regional campus in Machias going forward.

We will do this important work together as university community members, just as we are doing now in our campuswide student recruitment and retention efforts. As I noted in my State of the University Address, we are already enacting new ways of accomplishing what is most critical to us. Thank you all for what you have already done in FY23 to find efficiencies. Planning for FY24 has been undertaken with the recognition that the shortfall we faced in FY23 will continue and could grow.

We have submitted a balanced budget for FY24 to the Board of Trustees, relying on use of reserves, heightened efforts to achieve efficiencies and savings in operations, and anticipated changes in practices and policies for cost-savings. This will not be an easy process and will require difficult choices, prioritizing key areas and needs as we proceed. We will continue to work closely with deans and directors to make strategic decisions for filling vacant positions in high-demand and critical areas that arise because of faculty and staff retirements and departures.

We already have processes in place to optimize our management and deployment of financial aid, and to review funds that may be available in non-E&G accounts. We will draw carefully on the well-established reserve accounts that are in place because of the careful stewardship of those before us. Our goal is to achieve balance and minimize reserve use by FY26.

It is paramount that we identify new revenue growth opportunities. Everyone can play their part by finding efficiencies; bringing in external funding and spending it so that the indirect returns come back to us; and continue doing the very best possible job that we can do in and outside the classroom, the labs, the research sites, the athletics venues, and in all of our day-to-day work. 

We will emphasize enrollment and retention based on the implementation of the Strategic Enrollment Plan and nontraditional revenue growth opportunities across our enterprise, and creative programming in FY24–FY26. We will continue to implement both efficiencies and growth-oriented solutions across all three years. By FY27, we intend to begin rebuilding our reserves.

This three-year model depends on a collaborative decision-making process, and our solutions will be data- and benchmark-driven. Our work will depend on ongoing collaboration with the Faculty Senate, senior administrators and others committed to making the decisions needed to maintain our focus on providing the best education possible for students and our institutional mission. I invite you to join in a collaborative discussion during a virtual town hall from 10–11 a.m., March 20. 

The 91±¬ÁÏ is an outstanding institution. Maine’s Congressional delegation, federal agencies, Governor Mills and the Maine Legislature, corporate partners, and our generous and supportive alumni and donors all continue to demonstrate their great confidence in our institution. Our range of more than 100 majors, programs and credentials is comprehensive and designed to meet our students’ interests and build their careers. The new and innovative opportunities available to our students to engage early in experiential learning, to study side-by-side with world class scholars and researchers, and to live and lead in a caring and supportive community are extraordinary.

As a world-class, comprehensive, R1, D1 university committed to being a leader in the 91±¬ÁÏ System, the state, and beyond, our financial model will evolve to sustain the needs of the university in the future. And we will be successful with the help of all of you in our university communities.

Sincerely,

Joan Ferrini-Mundy

President