Gov. Jared Polis has signed an executive order reducing state spending by approximately $250 million for fiscal 2026. This action was the final step in addressing Colorado’s $783 million budget shortfall, created in part by the federal budget legislation known as H.R. 1 — the “Big, Beautiful Bill.”
Colorado’s public colleges and universities will collectively see a $12 million impact as a result of the reduction. For Metropolitan State University of Denver, the impact amounts to an approximately $880,000 decrease to its appropriation, said Jim Carpenter, vice president for Administration and Finance, in a message to MSU Denver employees Tuesday. However, Carpenter said the University was well-positioned to absorb the cut this year.
“We recognize that any reduction in state funding creates challenges, but the good news is that the impact on our institution is manageable in the near term thanks to strong fall enrollment, record student retention and the University’s ever-increasing budget discipline,” he said.
The Early Bird spoke with Carpenter for more insight into how MSU Denver will manage its finances this year and beyond:
Q: Why is MSU Denver able to absorb the reduction without significant disruption?
A: Simply put, the flywheel — fueling success through enrollment, retention and efficiency — is working! Enrollment this fall has exceeded expectations, and student retention is at record levels, both of which increase tuition revenue. In addition, the FY26 budget was built on conservative assumptions — including flat enrollment projections — giving the institution a cushion when revenues came in stronger than anticipated. Disciplined financial planning has also helped MSU Denver remain resilient in the face of unpredictable state and federal funding decisions. Collectively, these factors mean the University can manage the current year’s reduction ($880,000 of the University’s $222.9 million budget).
Q: What is the University doing to ensure long-term financial stability?
A: While this year’s cut is manageable, MSU Denver leaders are preparing for ongoing fiscal challenges at the state level. The University will continue to protect high-impact investments, such as initiatives that drive enrollment and student success, while carefully examining programs and services across campus. Hiring decisions will be made with efficiency in mind, and greater transparency around reserves will help the community understand available resources. These strategies not only strengthen the University’s ability to adapt to short-term challenges but also chart a sustainable financial path that fuels MSU Denver’s future.
Resources and support amid shifting policies
To assist students and employees in navigating the evolving federal landscape – and to support wellbeing in general – MSU Denver has compiled a list of campus and community resources. These offerings are intended to provide emotional, professional and practical support as our community faces uncertainty and works through potential impacts together.
