Dear Colleagues,

Just over a month ago, we gathered to celebrate more than 8,000 graduates at Temple’s 139th universitywide Commencement ceremony. The energy, joy and overwhelming sense of pride throughout campus that day were palpable. And we were treated to one of the most inspirational Commencement addresses I can remember as our latest honorary degree recipient Colman Domingo challenged our new graduates to embrace both their humanity and humility. It was a wonderful day to be an Owl and was a powerful reminder of why Temple and this community are so special.

Earlier this week, Temple’s Board of Trustees met and approved the tenure of 34 of our most accomplished faculty. Temple faculty are distinguished scholars and dedicated teachers who combine academic excellence with a commitment to student success. They bring deep expertise to the classroom while engaging students in meaningful research, mentorship and hands-on learning that enriches their educational experience. Congratulations to these newly tenured faculty on this seminal accomplishment.

Fiscal Year 2027 Budget Planning

As we approach the end of the fiscal year, I want to provide an update on our progress in addressing our structural deficit. We continue to advance our strategic plan, Forward with Purpose, but as we have shared, our institutional ambition must be balanced by the need to address the complex financial challenges we are navigating.

Temple has spent the past few years managing a structural imbalance in its operating budget, with recurring expenses exceeding recurring revenues by approximately $100 million over the past three fiscal years. As I shared earlier this year, the fiscal year 2027 operating budget was projected to have an $85 million deficit. This deficit is primarily due to the size of our student body declining far more deeply than the level of our personnel and operating expenditures over the past seven years.

Last month, each school, college and administrative unit received a budget reduction target. Collectively, these reductions total approximately $60 million and are an important first step toward returning the university to a balanced budget over the next three years.

I know that any level of budget reduction can create uncertainty and anxiety. We have been transparent about the budget review process through regular campus communications and direct engagement. Interim Provost David Boardman, interim COO David Marino and I met regularly with the Faculty Senate, and deans engaged faculty in discussions within the schools and colleges, typically through their existing budget committees.

As of the end of this week, we have held conferences with every school, college and major administrative unit where we have reviewed and discussed their reduction plans. These meetings have been very productive and collegial, and I thank all of our deans and administrative leaders for their excellent preparation and pragmatic solutions.

Every unit has proposed thoughtful plans to reach their budget reduction targets. Unfortunately, some reduction in force is inevitable, given that nearly 70% of Temple’s operating budget is spent on compensation and benefits. Fortunately, however, the Voluntary Retirement Incentive Program for faculty and the elimination of vacant faculty and staff positions have reduced the impact on current employees, and we continue to explore additional measures to minimize the number of individuals affected. It is my promise that any employee’s separation from the university will be handled equitably and compassionately.

There will be follow-up budget conferences with a handful of units in the coming days as we work to finalize the operating budget for the upcoming fiscal year. Thanks to the efforts of our schools, colleges and units, we are positioned to make significant progress toward reducing the fiscal 2027 operating budget deficit. We will provide another update after the board approves the budget early next month.

Navigating through this stark financial reality is not easy; I recognize the difficulty of this present moment. We will emerge from this process stronger and on a more sustainable path moving forward.

Budget Model Task Force

Last summer, I shared that a review led by an internal steering committee and guided by a team of experts at the National Association of College and University Business Officers resulted in a recommendation for Temple to transition away from the RCM budget model. Over the past year, the Budget Model Task Force has led a comprehensive and inclusive process to develop the new budget model. Beginning July 1, we will begin the transition to a new “One Temple” budget model, which will allow us to better align resources with institutional priorities, support long-term financial sustainability, and strengthen transparency and accountability across the university.

The task force’s recommendations for how this new model should function include the following key elements.

• Centrally determined base budgets that provide stability and planning continuity
• Transparent use of activity and performance metrics as decision-support inputs
• Centrally directed allocation of resources to institutional priorities
• Unified tuition pooling to eliminate internal competition and restore institutional flexibility
• Clear accountability structures for both academic and administrative units
• Support for entrepreneurship aligned with the university’s strategic plan

Most importantly, it was clear through the work of the task force that shared governance and transparent engagement with faculty and staff must be prioritized in the new model. The faculty will be a key partner in the budget planning process through participation in a newly established Budget Advisory Committee and in regular discussions with university leadership regarding financial conditions, budget priorities and resource allocation decisions. This builds on the progress we have made this year in shared governance, including the engagement of many faculty in numerous task forces, working groups and search committees. The Budget Office and university leadership will also meet with the Faculty Senate at least twice annually as part of the formal budget cycle.

Fiscal year 2027 will serve as a transition year for the new budget model before it is more fully implemented in fiscal year 2028. Full stabilization of the model may take at least three years. I am grateful for your support during this process, as this new model will ultimately better support Temple’s mission and long-term financial sustainability.

Enrollment

During the spring semester, the Division of Enrollment Management hosted a total of 4,203 student attendees across the numerous Experience Temple Day (ETD) events for admitted students. This is the largest number of ETD attendees in recent history, and the positive results are evident. Both first-year undergraduate and transfer student deposits are up year over year, and we are again positioned to enroll a large class of talented first-year undergraduate and transfer students when the Class of 2030 arrives on campus this August.

This week marked the first of 11 Orientation sessions for our incoming students. Thanks to the hard work of our colleagues across the schools and colleges, Student Affairs, Enrollment Management, and Academic Affairs, we have seen record registration for this important first step in our new students’ journeys.

Uniform Guidance Changes

As you may be aware, the White House Office of Management Budget, together with more than 40 federal agencies, published proposed changes to Title 2 of the Code on Federal Regulations on May 29. Vice President for Research Josh Gladden and his team are closely monitoring this situation and have already shared guidance with the Temple research community.

Information Technology Services (ITS) Unification

To better meet the needs of the Temple community, Vice President for Information Technology Larry Brandolph and the ITS team are leading an institutionwide IT unification initiative. The result will lead to IT services across the university being centralized to standardize technology practices and procedures, strengthen cybersecurity, and build a more efficient and cost-effective organization.

This process will establish a new “pod” structure designed to better support schools, colleges and units through pooled resources, shared expertise and coordinated services. Additional information on this initiative can be found here.

Extended July 4 Holiday Weekend

As the city and nation prepare to celebrate the semiquincentennial this Fourth of July holiday, we will extend the holiday weekend for our faculty, staff and students. In addition to Friday, July 3, the university will also be closed and classes will be canceled on Monday, July 6, to allow our community additional time to mark the 250th anniversary of our country’s birth. It is a small token of my appreciation for the innumerable ways in which you support this university.

Essential employees should check with their supervisors for guidance regarding scheduling. Clinical operations supporting patient care across Temple Health are not affected by the university closure and will continue as scheduled. Further information regarding clinical programs will be provided by the School of Podiatric Medicine, the Kornberg School of Dentistry, the School of Pharmacy and the Barnett College of Public Health.

Thank you all again for your continued commitment to Temple. I will continue to communicate with you regularly as we prepare for the 2026–2027 academic year.

Sincerely,

John Fry
President