Administrative and academic branches are working to identify strategic cost savings across campus as they present their fiscal 2026 budget requests to the University Planning and Budget Advisory Committee.
UPBAC, the group charged with developing a budget recommendation for President Janine Davidson, Ph.D., and other senior leaders, is working on its third cycle as part of a revamped budget process. And this year’s recommendation is likely to prove its most challenging.
The committee must chart the University’s fiscal path forward, balancing University priorities amid a challenging state budget outlook.
Still, budget managers are optimistic that the group will produce a balanced budget recommendation that supports the University’s spending priorities while keeping the institution on a fiscally responsible and sustainable financial footing.
“Throughout this year’s budget-planning process, we have asked branches and departments to take a thoughtful and strategic approach to cost savings within their existing budgets,” said Jim Carpenter, vice president for Administration and chief financial officer. “Working collaboratively across campus, we can identify budget efficiencies and align our spending with institutional priorities.”
By managing costs more effectively, the University can avoid more sweeping measures such as across-the-board cuts or hiring freezes, Carpenter said. It’s important to understand, he added, that cost-saving measures currently under consideration are not focused on positions.
“Our budget approach will ensure that the University remains focused on its priorities and its people despite a challenging budget environment,” he said.
That environment includes rising mandatory costs — those that the University is legally or contractually obligated to pay, such as utilities, increased insurance premiums paid through State Risk Management, computer leases and multiyear contract costs.
Meanwhile, UPBAC members are also closely monitoring the state’s uncertain budget outlook, as lawmakers grapple with how to cover a potential shortfall of more than $1 billion. MSU Denver receives about 45% of its revenue from state funding, with the rest of the University’s $230 million operating budget covered by tuition and other sources of revenue.
Based on current estimates, UPBAC would need to identify about $5 million in savings to cover mandatory costs and a modest compensation increase that cannot be offset via state funding.
In the coming weeks, UPBAC and University leaders will be identifying branch-specific cross-functional cost-saving opportunities, such as consolidating technology tools and shared services, enabling branches to make the most of their budgets while maintaining essential functionality.
UPBAC will hear presentations from branch leaders over the next month before deliberating and developing a budget recommendation that they will present to Davidson in late April. She and other senior leaders will consult that recommendation as they develop a budget proposal that MSU Denver’s Board of Trustees will consider for approval in June, ahead of the new fiscal year that begins July 1.
Contact your unit leader or UPBAC representative for more information on budget proposals and process. Review UPBAC meeting recordings, minutes and presentations on the committee’s SharePoint site.
