Dear Faculty and Staff,
On May 15, DePaul University’s Board of Trustees approved a $610 million operating and capital budget for fiscal year 2026. The Strategic Resource Allocation Committee endorsed the budget and worked through the entire year to define a financial plan that allows us to continue our collective work to educate our students and manage through the uncertainty of our current environment.
Higher education institutions across the country are navigating a rapidly evolving landscape shaped by demographic changes, rising costs, and shifts in federal financial aid. These dynamics present challenges that are not unique to DePaul. They also offer an opportunity for institutions – like our own – to lead with purpose, strengthen our financial foundation, and advance our Vincentian mission of access, service, and student success.
As we continue to reimagine our university’s future through the
Designing DePaul strategic planning process, we remain committed to transparency and our long-term financial sustainability. Our priority is to put systems in place that allow us to operate a modern university that can adapt to future needs. The university’s finances are critical to that effort.
Please see below for an update on our budget planning for fiscal year 2026, which begins July 1, 2025. This budget reflects the collaborative work of our academic and administrative units, guided by shared governance and careful consideration of the challenges ahead.
Budget planning in a shifting landscape:
Although we anticipate a small increase in net tuition revenue for fiscal year 2026, the university continues to face challenges from increasing competition and uncertainty around government funding that supports many of our students.
In response, we asked all units to plan for flat budgets for fiscal year 2026 and to reallocate resources within existing budgets where necessary. We aimed these efforts at protecting the university’s core mission, while positioning us to respond flexibly to future changes.
The approved budget provides for a modest 3% operating margin to reinvest in strategic priorities and ensure the university’s financial health and flexibility as we move through these challenging times. We are deeply grateful for the cooperation and support from all DePaul staff and faculty.
The fiscal year 2026 budget includes:
- A 2% merit increase pool for full- and part-time faculty and staff, contingent on meeting revenue targets. A decision regarding merit increases will be made by late fall 2025.
- Introduction of a new comprehensive student fee, which consolidates several existing fees. This simplified structure aligns with national trends and is eligible for financial aid, unlike some prior individual fees. More details will be shared directly with students. Learn more here.
- An increase of 4% in institutional financial aid, bringing the total to $355.6 million, reaffirming our commitment to student access, affordability, and offering additional assistance as some federal programs are removed.
- A $42 million endowment distribution – the full annual draw of the endowment - to support student aid, endowed faculty positions, academic programs, and university operations.
In addition, the following cost-saving measures will be implemented:
- A staff hiring slowdown or, if necessary, hiring freeze
- A reduction in staff vacation carryover from 10 days to 5 days at calendar year end
- Additional expense reductions of $9.9 million, with $7.1 million from administrative areas and $2.8 million from academic units
- A delay in implementing the findings of the full-time faculty salary study
- A pause of the monetary staff recognition awards program
We are pleased to share that this summer, full-time staff will have more flexibility and time to recharge with five summer hours days – an increase from our traditional three. Human Resources will share more details with you shortly.
We extend our deepest thanks to SRAC along with all the academic and administrative units for their thoughtful planning and commitment to our mission. As always, we invite you to visit the
Budget Blueprint website to review historical data, trends in higher education, and an overview of DePaul’s budget process.
Sincerely,
Robert L. Manuel
President
Salma Ghanem
Provost
Sherri Sidler
Executive Vice President & CFO