Dear Colleagues, 

As the semester nears its conclusion, we continue to take steps to both reinvest in our academic and student success programs and pursue initiatives that will lead to long-term financial sustainability.  

Earlier this month, I shared that the 2027 operating budget was projected to have an $85 million deficit prior to any corrective actions. As many of you saw in this weekend’s coverage in The Philadelphia Inquirer, there is significant attention on these issues, and we are committed to addressing them directly. We have been working to reduce the university’s structural deficit through a combination of targeted cost reductions, revenue enhancements and the Voluntary Retirement Incentive Program, which included more than 70 faculty members. 

For more than a year, the Budget Model Task Force, supported by advisors from the National Association of College and University Business Officers (NACUBO), has been working on the development of the new ‘One Temple’ budget model. Beginning July 1, Temple will move to a centralized budget structure. This transition year is critical to how we will operate moving forward, and targeted reductions are required to bring our overall expenses into alignment with our anticipated revenues. 

In planning for fiscal year 2027, each school, college and major administrative unit will receive a budget reduction target this week. These targets have been informed by the review of many factors, including actual multiyear operating results and spending, enrollment changes and associated revenue impacts, faculty and staff trends, and performance indicators. The goal of this approach is to ensure that reductions are data-informed, equitable, and aligned with both financial reality and academic priorities.   
Deans and vice presidents will work with their teams in the coming weeks to develop plans to meet these targets. Unfortunately, the scale of these reductions will require difficult decisions, and in some cases will result in reductions in force. 

As part of its work supporting the Budget Model Task Force, NACUBO also conducted an analysis of our academic program offerings, which revealed several key findings. Specifically, a number of the university’s undergraduate and graduate programs have been severely underenrolled for multiple periods. Many of these programs have had no students in recent years. Based on NACUBO’s analysis, Institutional Research has prepared school/college-specific data packets and program assessment materials, which have been shared with deans for review.  

The work ahead of us will not be easy, and we will face it with a clear understanding of what this moment requires and the responsibility it carries. We are committed to proactively facing our financial challenges head on and communicating with our community throughout this process.  

Temple is well-positioned to move forward with strength and continued momentum because of the unwavering commitment and contributions of our faculty and staff. I look forward to working together as we navigate these challenges and restore Temple to a strong financial position.   

Sincerely, 

John Fry 
President