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President Cabinet meeting
Leadership and Governance

State budget proposal reduces funding shortfall, but long-term challenges remain 

President’s Cabinet hears update, approves workforce bullying policy.

President Cabinet meeting

Metropolitan State University of Denver’s budget outlook for next fiscal year got welcome news last week from state lawmakers, who finalized a state budget proposal that includes more-than-expected funding for Colorado’s colleges and universities. 

But this year’s relief, largely due to one-time cuts, will give way to future funding challenges, leaders of the MSU Denver Government Affairs and Budget Office told members of the President’s Cabinet on Thursday. 

 
The state Joint Budget Committee’s proposal includes $32 million in new funding for higher education. MSU Denver is set to receive about $3.5 million of that funding, up from the $1.2 million that University budget planners previously anticipated, said Kaycee Gerhart, vice president for Government and External Affairs. 

However, it’s still well below the $10 million allocation the University received to cover cost increases last year. When combined with projected tuition revenue, the additional funding helps reduce MSU Denver’s projected budget shortfall for fiscal 2026 from $5 million to $2.5 million.  

While lawmakers averted steeper cuts by identifying one-time funding that could be diverted to state priorities such as education and health care, structural challenges in the state’s financial position likely mean leaner funding next year and beyond. 

“What I see is that (this year’s state budget) is buying us runway to prepare for what we know are future challenges,” Gerhart said.  

The University now has a little more breathing room but shouldn’t “take its foot off the gas” in terms of identifying opportunities to address those challenges, she added. 

Kaycee Gerhart headshot

“That means everything from thinking about how we creatively deploy our own budgets to how we think about the way that we generate revenue here on campus and the ROI we realize by the ways we invest the dollars that we have today,” Gerhart said. 

In opening remarks, President Janine Davidson, Ph.D., discussed the ongoing collaboration with state and national partners to monitor and respond to rapidly evolving federal policy developments. Davidson and General Counsel David Fine, J.D., recently attended a national conference of the President’s Alliance on Higher Education and Immigration, where university leaders from across the country gathered to share what their institutions are doing to support students and to highlight the value of higher education. 

Davidson reiterated MSU Denver’s commitment to its core values. 

“We don’t have any particular orders to stop doing anything we’re doing, and I just want to reaffirm to our entire community that that is our stance,” Davidson said. “We are a diverse, inclusive and outstanding institution that serves all kinds of people, and we will continue to do that.” 

Other updates included: 

  • Interim Provost Matt Makley, Ph.D., noted progress in developing a playbook to reduce DFW rates — the percentage of students who earn grades of D or F or withdraw from courses. 
  • Provost search: Open forums will be hosted with finalists April 14 and 21, with a sole finalist named at next month’s Cabinet meeting. 
  • Space study: Data-gathering is underway; the final report is expected by December, with phased recommendations to begin in 2026. 
  • Policy review: The Cabinet approved a workplace bullying policy, which will move forward for presidential approval, and reviewed drafts of brand-related policies.