Update on budget planning and federal issues

Dear Colleagues,

I am writing to provide a brief update on the two major issues that are a focus of our current work – the budget situation in Olympia and the policy changes and directives from the federal government. While there is not much new information to report, I felt that an update for all of you would be helpful. I want you to know that we are doing our very best to stay on top of these matters.

State Funding Picture

Without repeating what I have stated in previous messages, we still await the outcome of the 2025 Legislative Session, which will include passage of the state’s two-year budget with details about WWU’s state funding appropriation. In response to a $16 billion shortfall in the state budget outlook, the House and Senate proposals include a disproportionate budget cut for higher education. Along with our labor partners and the other public colleges and universities, we are hard at work in Olympia to advocate against cuts to WWU and higher education in general.

As you know, we began the fiscal year with plans to reduce the University’s expense base by $18 million in order to balance our budget. We’ve identified about $13 million in reductions so far, leaving a deficit of approximately $5 million. Depending on the final outcome of the legislative session, that deficit could grow to $8-10 million.

Over the past few weeks, we have been meeting with several important governance groups to seek their input and approaches to addressing the budget challenges. While there are no easy answers, the university has already made a number of difficult decisions, and further tough choices will be necessary in the next phase. That said, we are confident that, after this budget realignment work, Western will be on a more stable financial footing and better positioned to advance our strategic priorities in the years ahead. We will continue to prioritize the core educational mission of the institution, the need to recruit and retain students, and the importance of sustaining Western’s excellent reputation for high-quality education.

I will provide another update when we have a final budget from the legislature. In the meantime, we welcome any ideas – you can send them to me or to the vice president of your division – that you may have on reducing recurring expenses with the goal to create a financially sustainable path for the future.

Federal Policy Picture

With messages from Chief Diversity Officer Dr. Jacqueline Hughes and myself, we have tried to keep you informed, without overwhelming you, of policy changes and directives from the federal government, including the Department of Education, that negatively impact higher education. These span a range of issues, including research, immigration, and broader DEI matters.

Regarding research, recent court orders have blocked many of the federal directives related to indirect cost recovery (ICR) and grant funding. However, some academic institutions are now seeing an increase in the cancellation of specific grants. Last Friday, we were notified of the termination of three NSF grants. The Office of the Provost and the Office of Research are working closely with the affected principal investigators to mitigate the impact of these cancellations as much as possible, and we are in continuous consultation with the state’s Office of the Attorney General on this and other matters. The Office of Research also continues to monitor the federal research landscape and address emerging issues, such as delays in expense reimbursements for grant-funded projects.

Recently, as part of more aggressive immigration enforcement, many international students at other universities have had their visas revoked. At this point, none of our international students have been impacted. The staff in the Office of Global Engagement does a daily scan of the federal visa registries in case one of our students is affected, and they have been communicating with F-1 visa holders about this situation, as well as providing guidance related to travel and other immigration matters. As a note, last week KUOW inaccurately reported that one of our students is impacted, and we have reached out to them to correct this reporting error. The Provost will be sending additional communication on this matter in the coming days.

As we navigate these and future challenges, we will be guided by our mission and values. The safety of our community members and the integrity of our academic environment are of paramount importance to us – and to me personally. I have shared recently with several members of our community the importance of academic freedom to the work of our institution. Academic freedom and shared governance are core values at Western, and the right to engage in activities protected by the First Amendment remains a vital aspect of academic life.

Thank you for your support and partnership as we navigate these challenges for Western and higher education.

Sincerely,

Sabah