Temple University Faces $60M Deficit, Plans Position Cuts

Temple University is confronting a significant financial challenge, with a projected $60 million structural deficit for fiscal year 2026 following a reduced $19 million deficit for fiscal 2025. The university's budget issues stem primarily from a 10,000-student enrollment decline since 2017, resulting in a $200 million loss in tuition revenue, while state funding has remained flat and operating costs, especially salaries and benefits, have risen. To address the shortfall, President John Fry has mandated a 5% reduction in compensation spending across departments, with officers and deans also foregoing salary increases, leading to plans that will eliminate some positions, though specific layoffs have not yet been detailed. Efforts to control spending have included tight management of hiring, travel, and discretionary expenses, but Temple acknowledges that fiscal challenges will persist until enrollment growth and new revenue sources are secured. This fiscal strain is compounded by federal funding cuts under President Donald Trump's administration, further complicating the university's financial stability. Temple leaders emphasize the necessity of difficult decisions over the next three years to achieve a structurally balanced budget and restore financial health.