Since the fall of 2017, total enrollment has declined by more than 10,000 students and translates to a reduction of approximately  $200 million in gross tuition. And while the university’s enrollment has decreased by 24.1% students since the fall of 2017, its number of full- and part-time time faculty members has decreased by only 3.5%, down to 3,671 from 3,804. 

The decrease in students is also reflective of the success of the university’s Fly in 4 Graduation Partnership, which works to ensure that students graduate in four years with as little debt as possible. The innovative program is one of the first of its kind in the United States, and it has been immensely successful. However, by the very nature of the program, its success will ultimately mean that there are less students on campus. 

As Temple’s enrollment has decreased, the university has worked to trim its budget wherever possible.

For each year that we have a structural deficit, university reserves are used to cover expenses, which is not a sustainable path forward. We must work toward a budget that is structurally balanced, where our annual expenses do not exceed our annual revenue. 

University reserves are intended to be used for one-time expenses or investment in long-term projects. Relying on reserves to cover recurring expenses would deplete the reserves and leave the institution vulnerable in the future. As an example, when your roof needs to be replaced, that is the time to tap into your savings for a one-time project investment. It is unsustainable to use reserves to cover your monthly mortgage payment. 

Using reserves to cover deficits would negatively impact the university’s credit rating which would not only make it more expensive to borrow money to fund future capital projects, but would also raise concerns among donors, alumni, and other stakeholders about Temple’s financial stability. 

The majority of funds used for capital improvements, like new buildings, are state funds that are awarded and designated for that purpose. The university is not permitted to use the funds for another need and cannot be used to close a budget deficit.

New facilities play a key role in attracting and retaining students, which is especially important in today's competitive climate. Investments in the environment where our students live and learn supports our core mission. 

Athletics is subject to budget cuts as well. For many students, it provides an entryway to higher education. It also supports recruitment and raises Temple’s national profile. Athletics is not immune to cost controls, but it plays a key strategic role. 

Although enrollment is projected to increase slightly to 30,193 (up 188 students year-over-year) in 2025-2026, total enrollment is still far below where it was in 2017 when peak enrollment reached 40,240. Fewer students mean less tuition revenue. At the same time, costs—including compensation and financial aid—continue to rise. 

Our two main revenue sources—tuition and the state appropriation—account for 92% of our operating budget. Tuition revenue has dropped by roughly $200 million since 2017 due to enrollment declines. Meanwhile, our state appropriation has been flat for the last five years, despite inflation. 

As we have dealt with both decreasing enrollment and stagnant state funding, the university has worked to mitigate its financial challenges by reducing the budget by approximately $200 million since 2021.

In FY2024, the university began the current fiscal year with a projected $90 million budget deficit, balanced by the elimination of over 150 administrative staff vacancies and the use of one-time dollars, as well as reducing the number of staff hires through the administrative hiring review process implemented in fall 2022.

To ensure a more sustainable path forward, every central support unit, schools and college was asked to make reductions in spending and submit a plan for reducing the budget. Each of us must take a closer look at our programs, services, and the way we do business. We will continue to explore where we can find efficiencies and will be pursuing every option that helps the university balance the budget. This is not a one-time exercise and leaders will need to determine what is core to our mission and what services we might need to change, reduce or eliminate.