Update on budget planning for 2025-2026

On Sunday, the state legislature passed Washington’s 2025–27 operating, capital and transportation budgets. Legislators developed a compromise budget in the context of the largest state budget deficit since the 2007–09 Great Recession. Governor Ferguson now has 20 days to review and decide on whether to sign it and the accompanying tax increases, including whether to make any line-item vetoes of specific budget items.

State budget impacts on the University of Washington

While much remains uncertain, the budget includes a 1.5% across-the-board reduction for the University of Washington. The state also reduced its funding share for the “fund split” — the mix of state funding and tuition used for employee compensation and central services — from 60% down to 42%. When paired with unfunded increases in benefit costs, this creates added pressure on the finances of the University and of other public higher education institutions across the state.

I’m relieved that the legislature largely protected funding for the Washington College Grant for students at public institutions, which makes college possible for so many of our Tacoma Huskies. The passed budget also includes $3.9 million for critically important power repairs from the UW Building Account, which would mean that our electrical overhaul would not be a draw on UW Tacoma’s reserves.

Nonetheless, the reductions increase the significant challenges we already face from federal budget cuts to research programs and other University priorities.

What does this mean for UW Tacoma?

We are one University with a centralized budget process and finances, so impact to the broader University also leads to local impacts at UW Tacoma. The UW receives and administers state dollars to each campus, guided by the University’s strategic goals and priorities. UW Tacoma will know more about specific budget impacts after the Board of Regents meeting on May 7 and 8, where the Board will review a preliminary budget. The President and Provost will host a virtual Town Hall focused on budget on May 7. More information about reduction targets will emerge when we know what the Governor does relative to the budget, and we have more specifics from the UW Office of Finance, Planning and Budget (FPB). That said, as a University, we anticipate lasting impacts to our funding model, brought into sharper relief by possible federal policy changes.

Reduction scenario planning begins

On Monday, I met with UW Tacoma leadership, including the Chancellor’s Cabinet and the Budget Advisory Committee, to ask division leaders to begin modeling budget planning scenarios of 3% and 5% reductions to core funds in their FY26 budgets. While these targets may change after we receive guidance from FPB, it’s imperative for us to start preparing for a new landscape in the years ahead. I ask everyone involved in these budget scenarios to center UW Tacoma’s vision, mission and values as you consider what to prioritize.

Key dates to note

Please note these key dates and plan to attend the Town Halls if you are able:

• May 7: UW Budget Town Hall with President Cauce, Provost Serio and Chief Financial Officer Sarah Norris Hall
• May 7–8: Meeting of the UW Board of Regents, where we anticipate that the Regents will discuss the University’s budget
• Following the May Regents meeting: FY26 budget guidance released by the FPB
• May 13: UW Tacoma Town Hall
• June 6: Reduction scenarios will be due from major campus divisions to the Associate Vice Chancellor for Planning & Budget, Cherie Berthon
• June 12: Meeting of the UW Board of Regents, where we anticipate final action on a proposed operating budget

Resources and further information

As always during budget planning processes, UW Tacoma Finance & Administration’s Institutional Planning & Budget webpage will continue to be a source of information and guidance.

We stand at a crossroads, not only for UW Tacoma, but for the students and communities we serve. And we are not alone: across every state in the nation, colleges and universities are grappling with how to best serve the public with fewer resources. There will be difficult days ahead for us all.

For 35 years, we’ve been reinventing who we are and what college can be. I believe in our creativity and our dedication. This is not the first hard time we’ve faced, nor will it be the last — but I am confident that together, we will ensure that UW Tacoma remains a home for equitable, student-centered learning for the next 35 years and beyond.