FY27 Budget Update
June 30, 2026
Dear SLU faculty and staff,
When we gathered in April for the Mapping Our Moment presentation, I spoke candidly about the challenges SLU faces and my confidence in our ability to meet them. I write today in that same spirit: to share an update on the FY27 budget, which begins tomorrow; to acknowledge the difficult choices ahead; and to affirm my confidence in SLU’s future.
The simple but difficult reality is that SLU has a structural deficit: enrollment and net tuition revenue have declined while costs and inflation have risen. Over the last two fiscal years, many across the University worked hard to close the gap through expense reductions, deferred maintenance, operating budget cuts, limited merit increases, and increased endowment draws. These steps required significant effort, but they have not been enough because enrollment and net tuition revenue have continued to soften. We need more fundamental changes to resolve the underlying challenge.
As part of FY27 budget planning, leaders across the University identified additional expense reductions, including personnel reductions and the difficult decision to forgo a salary increase program. To deliver the FY27 budget, we will eliminate more than 35 open faculty positions and 45 open staff positions. We will also eliminate some filled staff positions and make additional faculty reductions. These decisions are painful, and we will carry them out with compassion and respect for the contributions of those affected.
Even with these actions, we expect to end FY27 with a modest deficit.
At its May meeting, the SLU Board of Trustees approved this budget, based on leadership’s commitment to resolve our structural deficit over the next several years. To support that work, the Board also agreed to continue an increased endowment spend rate for one additional year. Separately, the Board approved investments in Billiken Athletics, recognizing athletics’ contributions to student life, national visibility, and institutional strength. Those investments will not affect the rest of SLU’s operating budget. They are intended only to cover athletics expenses not offset by expected revenue growth from sponsorships, philanthropy, and other sources.
The Board’s support gives us time to make necessary changes while continuing to support student success and advance our teaching and research mission.
Revenue realities mean that the University will need to operate with fewer people and resources, but austerity alone will not create a thriving SLU. We must design a financially sound organization that fosters purposeful student formation, sustains strong academic programs and research, and supports faculty and staff with competitive compensation and meaningful professional growth.
To build toward this better future, we will rethink the University’s size, structure, and operations. We will soon share a draft strategic plan that reflects what we have learned through the planning process, builds on SLU’s strengths, and identifies initiatives that can distinguish SLU in a competitive landscape. We will also engage faculty and staff in efforts to modernize administrative operations, improve access to data for decision-making, and align our academic structure with SLU’s strongest opportunities.
I remain confident that SLU can succeed in this challenging environment if we act with creativity, courage, and resolve. Thank you for your continued engagement and commitment to SLU’s mission.
Edward Feser, Ph.D.
President