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, costs—including compensation and financial aid—continue to rise.

Reserves are meant for one-time investments, not 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 costs. These facilities help attract students and improve the learning environment. The Commonwealth funding coupled with philanthropy has built up and covered a large portion of recent major capital projects, keeping debt off our books.

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. 

We may receive additional funding from the Commonwealth this fall through a performance-based funding pool, which is positive but does not solve our 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.

Our two main revenue sources—tuition and the state appropriation—account for 84% of our operating budget. Tuition revenue has dropped by roughly $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’re making difficult but necessary decisions today, 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.