Fiscal year 2026 budget update and 2027 planning

The following message was sent to all faculty and staff on Wednesday, July 9, 2025

Dear Colleagues,

I’m writing to provide an update on Boise State’s FY26 budget and to share preliminary information about the FY27 budget planning process.

The state’s Division of Financial Management (DFM) has reported that general fund revenues through April 2025 were approximately $55 million (1.2%) below FY25 projections. Slowing sales tax growth has led the state to revise its revenue forecasts downward for FY26 and FY27.

As a result, DFM has asked all agencies and institutions of higher education to prepare for a potential general fund holdback (meaning funds will either not be disbursed or will be called back by the state) of 2%, 4%, or 6% in FY26 or FY27. For Boise State, this would mean a reduction in the following ranges:

In addition to potential holdbacks, the state has indicated that FY27 will be a maintenance-only budget year, meaning that with few exceptions, requests for new funding will not be considered. The state also anticipates another increase in health insurance premiums for FY27, which will have a budgetary impact, as well.

Last week, the vice presidents and interim president reviewed each division’s FY26 prioritized budget requests. In light of the current economic uncertainty, no requests requiring central base funds were approved beyond full funding for FY26 CEC and health insurance premium increases, as well as faculty promotions. University vice presidents will consider FY26 budget requests from their divisions to determine whether and how these requests can be funded internally. Multi-year bridge commitments from prior fiscal years will be honored. 

To prepare for a potential holdback, the university will begin a vice-president-led divisional review of vacant positions to determine whether any can be eliminated to generate cost savings. The university will also hold FY26 tuition revenue generated from enrollment increases in reserves in anticipation of a holdback. In the event of a holdback, should these strategies fail to generate sufficient funds, the university will consider strategic divisional reversions of base funding. 

In spite of these challenges, I want to assure you that the university is financially sound. These strategies are designed to help the university respond flexibly and responsibly should a state holdback be implemented. The actions we are taking now are proactive and intended to reduce the likelihood that more extreme measures will be necessary in the future. 

Information regarding divisional budget requests and the vacant position review process will be shared by the vice presidents over the next two weeks. We will continue to monitor the state’s fiscal outlook and will share updates as more information becomes available. 

Thank you for your continued partnership in navigating this period of uncertainty with care and fiscal responsibility.

With gratitude,

Alicia Estey
Chief Financial and Operating Officer and Vice President for Finance and Operations