Metropolitan State University of Denver’s budget-planning process will kick into full gear this month alongside a new University budget model aimed at strengthening long-term financial sustainability and better aligning resources with student success.
Over the next month, branches, colleges and schools will develop their fiscal 2027 spending plans for review by the University Planning and Budget Advisory Committee (UPBAC). UPBAC will then develop a recommended University-wide budget for President Janine Davidson, Ph.D., to consider this spring.
MSU Denver leaders say budget planning for next fiscal year, which begins July 1, reflects an established annual process and a significant moment of transition for how institutional resources are allocated and stewarded across the University.
A year of transition for budgeting
Under the University’s new model:
- After funds are set aside for shared services that enable the academic mission, including Administration, Student Affairs and academic support offices, institutional revenue will flow directly to colleges and schools.
- College and school allocations will be informed by mission-aligned metrics such as credit hour production, student headcount, first-generation student participation and degree completions.
- Separate formulas will be used for undergraduate and graduate programs, with multi-year trends incorporated to reduce year-to-year volatility.
The shift is part of a strategy designed to strengthen budget transparency and the University’s long-term financial sustainability through incentive structures while continuing to prioritize student access and success, said Jim Carpenter, vice president for Administration and Finance and chief financial officer.
He emphasized that MSU Denver is in a strong financial position and doesn’t face the kinds of financial actions that other institutions are taking, such as hiring freezes, amid a challenging state fiscal environment.
“Enrollment and retention are up and the flywheel is working,” Carpenter said. “Our new budget model is a proactive step to build on this momentum and ensure long-term stability.”
FY27 will serve as a learning and assessment year, with the model reviewed and refined annually based on data, implementation experience and campus feedback.
Faculty and staff compensation structures are not affected by the new model, and for most employees, day-to-day work is not expected to change as a result of the shift.
Budget planning in a constrained environment
Alongside the rollout of the new budget model, the FY27 Budget Circular outlines a challenging state fiscal environment that will shape planning across the University this year.
While higher education navigates state budget pressure, state funding will be more constrained in the coming year due to a convergence of factors, including economic conditions, federal policy shifts and the expiration of pandemic-era relief funds that have caused a structural deficit in the Colorado state budget.
The University is projecting flat to modest growth in available revenue for FY27, while facing mandatory cost pressures related to contractual obligations, statutory requirements, utilities and other required expenses. The University also faces compensation demands to continue a commitment to our people. As a result, FY27 planning emphasizes fiscal discipline, internal reallocation and careful evaluation of program effectiveness.
“All of us should approach our budgets with a shared-stewardship mindset,” Carpenter said.
What branches should be doing now
With the budget cycle well underway, departments and branches should be:
- Reviewing existing budgets and identifying mandatory cost increases.
- Assessing how current spending aligns with the president’s budget charge and University priorities, particularly proven student success, retention and the Roadrunner experience.
- Ranking new budget requests by branch priority and supporting them with data demonstrating impact.
- Identifying potential offsetting savings through operational efficiencies, underused funds or reallocation of existing resources.
- Accounting for multi-year impacts, including out-year costs related to inflation, compensation and asset maintenance.
Branch budgets are due to the Budget Office by Feb. 13.
Role of UPBAC and next steps
After proposed budgets are submitted to the Budget Office, UPBAC will review them, hear presentations from campus leaders and prioritize requests using criteria tied to institutional priorities and available resources. Even branches not seeking new funding should expect to present, providing an overview of spending patterns, initiatives and alignment with University goals.
UPBAC will then develop an overall budget recommendation for consideration by Davidson, who will then submit a final proposal to the Board of Trustees for approval in June.
