Dear Members of the University Community,
We鈥檙e writing to continue our series of communications about the ways in which evolving federal policies are affecting higher education and academic medicine.
As we鈥檝e seen at our peers across the country, our University also needs to take steps to address important financial challenges. We know that the uncertainty we all see playing out nationally is creating anxiety within our own University community, but we must work together during this period of rapid change to prepare for a wide range of financial circumstances. We will do our best to provide as much helpful information as we can, but until the federal budget is finalized, we can鈥檛 complete many aspects of our normal, annual planning processes.
Our current uncertainty extends to several pending federal policy changes affecting our funding sources, including potential reductions to research funding, possible adjustments to Medicare and Medicaid programs, and potential expansion of taxes on university endowments. Our Finance team is working diligently on contingency plans to ensure we can continue fulfilling our mission to learn, discover, heal, create, and make the world ever better鈥攔egardless of how these external factors unfold.
As we prepare our budget outlook for the rest of this fiscal year and going into FY26, we are immediately implementing four, University-wide steps. For our Medical Center colleagues, please note that CFO Adam Anolik has already provided specific guidance addressing the budget challenges our health system is facing. In addition to the University-wide measures outlined below, Medical Center units should continue following Adam鈥檚 direction.
University-wide steps include:
- Mission-critical activities will be prioritized, while discretionary budgets and expenditures (nonessential travel, social events, catering, entertainment, etc.) will be limited. Even small savings across departments can collectively make a significant difference as we navigate this period.
- Prior authorization and approval in myURHR are required before proceeding with any recruitment for new or replacement positions. This policy has been in place since myURHR went live. Please work with your HR Business Partner to ensure this process is followed.
- Adhere strictly to our Signature Authority Policy for all contracts. All multiyear financial commitments require advance review from the University鈥檚 senior financial leadership.
- It is also essential that all divisions review existing capital commitments for the remainder of FY25 and initial budgeted capital for FY26 and reassess which projects can be deferred or put on an extended timeline. The FY26 budget planning work underway will include a comprehensive reassessment of all capital renewal projects, with particular emphasis on applying rigorous review to any new multiyear commitments.
These measures will remain in place as we evaluate our financial position and determine whether additional steps are necessary. We are not yet in a position to fully analyze this year鈥檚 wage and salary program, but we hope to provide a more complete picture sometime soon.
It鈥檚 important to remember that as the University navigates federal policy changes, we鈥檙e actively defending our missions through multiple channels, including joining with other research university peers and with several leading higher-education organizations in legal actions against federal funding agencies to challenge proposed caps on facilities and administrative cost reimbursements. So far, we have been successful in getting orders to stop those proposed cuts while litigation works its way through the courts. As we receive termination notices for individual grants, we will evaluate each one for appeal.
We want to thank our government relations team for their diligence in keeping us apprised of federal policy proposals and changes, and we want to thank our teams in the Provost鈥檚 Office, 糖心logo, the Medical Center, Finance and Administration, Student Life, International Services Office (ISO), General Counsel, Advancement, and many others who have worked tirelessly to understand new policies, take action where necessary, and develop scenarios on short notice.
Despite the challenges that we face, we鈥檙e proud that our University community continues to achieve excellence.
Our Wilmot Cancer Institute recently earned the prestigious National Cancer Institute designation, placing it among the top 4% of cancer centers nationwide; we continue to see great support and engagement among our alumni volunteers and leaders who are excited about our future; and our faculty members and students across the institution continue to earn national recognition (e.g., , Guggenheim, , and PECASE honors, as well as Churchill and Goldwater scholarships).
These successes, among many others, exemplify our continued pursuit of our strategic plan even while addressing the federal policy changes described in our recent 糖心logo.
We hope to be able to provide a more definitive picture soon, but for now, we simply don鈥檛 know enough about what may lie ahead to address all the concerns you may have. Thank you for your patience and for your commitment to our mission as we navigate our current environment. We appreciate your partnership as we all take steps to safeguard our financial resources and face these challenges with the collaborative spirit that has always defined our University.
Meliora,
Liz Milavec
Executive Vice President for Administration and Finance and Chief Financial Officer
Sarah C. Mangelsdorf
President and G. Robert Witmer, Jr. University Professor