We know that state and federal revenues are tightening and that WSU experiences ongoing enrollment challenges since the pandemic. As a result, units across the Washington State University system are being asked to prepare budget proposals for FY26 that reflect possible reductions of 1%, 3%, 5%, and 10%. Reductions are always tough, especially when significant relief is not in sight — but we also know that the 21st century land-grant mission is as imperative as the original 19th century mission ever was and we will all need to work together to enable WSU to thrive.
The WSU Budget Committee — including President Elizabeth Cantwell, Executive Vice President and CFO Leslie Brunelli, Provost and Executive Vice President Chris Riley-Tillman, Executive Vice President and Spokane Chancellor Daryll DeWald, along with Faculty Senate representatives Tracy Klein and Ken Roberts — will review proposals from all 44 budgeted units.
WSU will not implement blanket cuts. We will prioritize reductions and investments that support areas most critical to our continuing mission. That means that while reductions to core budgets are expected, funding — both one-time and recurring — will remain available for high-priority initiatives that support long-term success.
WSU will not implement blanket cuts. It will prioritize reductions and investments that support areas most critical to its continuing mission.
We must seek to design our own future, emerging from these financial challenges as an enduring and indeed thriving land-grant institution that provides a world-class education and serves communities here in Washington and beyond.
A shifting financial picture
Declining reserves are primarily the result of lower enrollment during and after the COVID-19 pandemic. Total student enrollment has fallen from 31,607 in Fall 2019 to 25,685 in Fall 2024. Fewer students means lower tuition revenue — particularly in units like the College of Arts and Sciences, which delivers a large share of undergraduate credit hours.
At the same time, core expenditures at WSU’s 11 colleges have increased 11.6% since FY22, while average credit hours have dropped nearly 10%. This mismatch has required some units to draw from reserves to close the gap.
While enrollment trends are now beginning to improve, with the past two fall semesters bringing increases in new first-year students, the mismatch identified above combined with shifting federal priorities and decreases in state revenues means that we need to go beyond “belt tightening” in the near term to future-casting entirely new ways to meet our mission with new financial models that might include enrollment growth, diversified revenue streams and re-imagining our use of our spaces, to mention a few options.
Planning ahead
This year, units will present their budget scenarios between April 21 and May 2. These presentations will address potential reductions and also allow units to propose new ideas that can include new funding needs that might generate future revenue and new ideas for changes that can help us thrive as an institution in the future.
While units will not be allowed to use carryforward balances to manage reductions, they may be able to use carryforward to fund specific initiatives with prior approval. WSU leadership is also reviewing how those balances are managed across the system to ensure healthy working capital moving forward.
As part of its planning, WSU Health Sciences is developing contingency plans for reductions of up to 15%, reflecting financial pressures specific to that campus.
The Board of Regents is expected to approve the FY26 budget on May 21, with final documentation completed in June.
While these times require tough decisions, we remain optimistic about our future. Together, we will emerge stronger, ensuring that our institution continues to be a model land-grant university — one that leads with innovation, serves with purpose, and prepares the next generation of scholars and leaders.
This article is part of a series focused on the extraordinary challenges facing the university system. WSU Insider, in the weeks and months to come, will continue to examine the headwinds and how the university is preparing.
