Budget Update and Next Steps

Dear WWU Colleagues,

In October, we shared an update on the university’s structural budget deficit and committed to keeping you informed as we worked through this process. At that time, we outlined the need to make difficult but necessary reductions to bring our recurring expenses in line with revenues while preserving our academic strengths and ability to invest in the future. As promised, I want to follow up on where we are now, how decisions are being made, and what to expect in the months ahead.

As shared previously, WWU’s annual structural deficit is about $18 million. We need to operationalize these reductions by the end of the 2025-2026 academic year to maintain long-term fiscal stability and ensure we can effectively fulfill our educational mission for Washington State.

Our approach continues to center on the priorities we outlined in October: preserving the academic core, enhancing enrollment and retention, and creating new pathways for more of Washington’s students to come to WWU.

I will first get to the bottom line: To date, we have either instituted or identified recurring cost reductions of a little over $13 million. This includes the restructuring efforts from fall 2024, including consolidation of University Relations and Marketing functions into University Advancement, reorganizing Enrollment Management, Academic Advising and Outreach and Continuing Education in Academic Affairs, and consolidating IT services into Business and Financial Affairs. Also factored into this number is the work on reducing parallel structures in academic units, an effort led by the Provost.

Additional activities that are factored in include a reduction in goods and services in non-academic units, a reduction in redundant software across the university, a consolidation of communications, marketing, and IT functions across the university, and an early retirement program for faculty pending state approval.

In our budget situation, where payroll makes up most of our operating expenses, implementing a recurring reduction of $18 million will require a reduction in permanent positions. The identified recurring expenditure reduction will result in the elimination of 74 staff positions, primarily in administrative and support units. Of these, nearly half (36 of 74) are vacant. The remaining positions are currently filled, which unfortunately means we must go through the difficult process of separating employees from the university. Human Resources is notifying the affected employees, their supervisors, and labor representatives, as required.

These decisions are not being made lightly. We have tried to be strategic in assessing functions and positions across the university, with an initial focus on reducing vacant positions. Nevertheless, I fully recognize the impact on employees affected by reductions—either directly or through the bumping process necessitated by labor contracts, and I am saddened that they are losing employment with Western and the disruption this will cause in their lives. I also want to acknowledge the impact on employee morale from losing colleagues and due to the continued uncertainty in the budget environment.

Many will likely ask whether these will be the only cuts. The reality is that while we are taking significant steps now, our financial position will continue to evolve. To fully eliminate the structural deficit of $18 million, we still need to find reductions for the balance of about $5 million. Additionally, we are uncertain how Washington State’s budget outlook will affect WWU’s state funding allocation for the next two years. This year’s legislative session will end in late April, after which we will have a clearer picture of future state funding. We appreciate the joint advocacy work with our faculty, staff, and students for funding for WWU’s base operating budget and will continue to do so during the balance of the legislative session.

I will provide additional updates on our budget work and ongoing restructuring efforts at the end of the legislative session in late April. For further questions that may emerge among our employees, I would like to share the following FAQs page, which will continue to be updated as this process moves forward.

I want to close by expressing my deep appreciation for your dedication to Western and to our students. I know this is an unsettling time and that many of you are feeling the weight of these changes – not just with budgets but also with the uncertainty resulting from federal-level directives and communication.

I encourage you to take advantage of existing resources, including the Washington State Employee Assistance Program, which provides confidential support for employees navigating stress and uncertainty.

Starting the week with this message is not what I want to do, but there is never a good time or an easy way to deliver news on budget and position reductions. Again, I want to recognize the personal impact these changes may have, and I appreciate your understanding during this process. I also recognize the budget uncertainty as the legislative process unfolds over the next few weeks and the work ahead of us to ensure our university and community’s health and sustainability. While we cannot eliminate all uncertainty, we will continue to communicate and support you through this transition as best we can.

Thank you for all you do.

Sabah