K. Spinelli presented the Finance Committee update from their meeting on May 4th:

• Enrollment: Incoming deposits are up more than 38% from last year, attributed to the Fitchburg Promise and direct admissions initiatives. The university is working with students displaced by the closure of Anamaria College, having received 75 applications already.
• Retention: There is a renewed focus on retention with re-targeted outreach to students signed up for housing but not yet registered for fall classes.
• Financial Overview: CFO Dr. Travis Chambers reported stable revenues in graduate and continuing education (GCE) and increased undergraduate summer enrollment.
• FY27 Budget: The initial look at the FY27 budget is being developed with a conservative approach, assuming level enrollment.

FY26 Budget Update (Presented by President Hodge and Dr. Chambers)

• Revenues: Total revenue generated as of May 4th is $105 million (95% of budgeted revenue). This includes the final state appropriation drawdown of $45.6 million. GCE revenues exceeded their budget at $9.4 million.
• Expenditures: Regular employee compensation is $36.9 million, with an anticipated $1.4 million to $1.5 million in retroactive pay for outstanding MSEA contractual obligations. Total expenses are $87 million.
• Reserves: The goal is to avoid drawing from reserves through careful position management. The team is currently trending to not need to use reserves, but a final prediction is pending the resolution of contractual obligations.
• Recommendation: Eric Gregoire suggested that future in-year budget reports include columns projecting the full-year landing based on in-year assumptions.

FY27 Budget Review (Initial Draft)

• Revenues: Projected total revenue is $112 million. $2 million from reserves is included as a potential resource. Tuition and fees are projected as flat due to a conservative approach and no approved fee increase for the year.
• Expenditures: Projected total expenses are $111 million, resulting in a net surplus of $489,000.
  • Regular employee compensation is kept flat at $49 million, factoring in CBA increases but relying on careful position management.
  • A $600,000 increase is budgeted for the benefits program to cover additional financial aid, supporting retention and access for students, including those not eligible for Pell grants.
• Long-Range Planning: President Hodge emphasized that long-range planning is underway to anticipate future needs, ensuring the budget remains realistic and competitive while continuing to invest in student success.