Although enrollment is projected to increase slightly (by approximately 180 students year-over-year) in 2025-2026, total enrollment is still far below where it was in 2017 when peak enrollment reached 40,240. Even this past year, while first-year undergraduate enrollment increased, overall enrollment decreased from 30,530 to 30,005. Fewer students mean less tuition revenue. At the same time, expenses —including compensation and financial aid—continue to rise.

Our two main revenue sources—tuition and the state appropriation—account for 84% of our operating budget. Tuition revenue has dropped by approximately $200 million since 2017 due to a 25% decline in overall student enrollment. Meanwhile, our Commonwealth appropriation has been flat for the last six years, despite inflation.

We may receive additional funding from the Commonwealth this fall through a performance-based funding pool, which is a positive development but does not resolve our financial challenges. For context, more than 15 years ago, during the 2009-10 fiscal year, Temple’s state appropriation was $175.1 million. Within a few years, it was reduced to $139.9 million, and it has never reapproached its peak despite near unprecedented levels of inflation in recent years. According to the U.S. Bureau of Statistics, Temple would need to receive an additional $63.6 million in its appropriation to keep pace with the 2010 appropriation. Presently, Pennsylvania ranks 46th in appropriations and attending college in Pennsylvania costs 69.6% more than the national average cost of attending a public four-year institution.

Compensation makes up the largest share of university expenses. The 5% reduction helps to permanently reduce the structural deficit while preserving our ability to support core academic and student-facing services.

Reserves are meant for one-time investments, not to support ongoing operations or recurring expenses like salary and benefits that will continue year after year. Using reserves to cover regular expenses is not sustainable as once a reserve dollar is spent, it is gone and not replenished. Continued use of reserve funds would lead to more severe financial problems in the future.

Major construction projects are supported by funding from the Commonwealth that is restricted to capital improvements and cannot be used for operational expenses. These facilities help attract students and improve Temple's learning and research environment. The Commonwealth funding coupled with philanthropy has covered a large portion of recent major capital projects, without adding debt.

Athletics is subject to budget reductions as well. In light of changes at the national level, we are carefully reviewing our investment in athletics.

We’re making difficult but necessary decisions to reduce the university's structural deficit, while also investing in the future: expanding online programs, launching a fundraising campaign, growing enrollment, and updating our strategic plan to focus resources where they’ll have the greatest impact.

The review process has shown that the RCM model has limited our ability to advance institutional priorities, in some cases has impeded collaboration and it does not effectively align resources with our long-term goals. It has become clear that a different approach—with clear incentives and accountability—is needed to position Temple to navigate demographic and financial headwinds while also being effective in carrying out our teaching, research and service work.  Over the next year, we will design and implement a new budget model to take effect on July 1, 2026.