Dive Snapshot:
- Temple University is again making budget cuts as it heads into the fiscal 2027 year still wrestling with elevated costs and the impact of past enrollment declines.
- The public university’s $1.3 billion operating budget raises tuition an average of 3.4% for in-state and out-of-state students for the 2026-27 academic year and cuts $60 million in expenses, according to a Tuesday news release.
- Among other measures, Temple plans to lay off around 40 employees, less than 1% of its workforce, as the university tries to close what was previously projected to be a $85 million budget deficit, Temple President John Fry said Wednesday in a community message.
Dive Insight:
Higher ed impact: Temple, in Philadelphia, is just one of many institutions — large and small, public and private — that are navigating budget deficits going into fiscal 2027. Many have announced layoffs, among them Kent State, Bowie State, Colorado State and Johns Hopkins universities. Prompting those moves are myriad factors, including lagging state funding, federal policy disruption, enrollment fluctuations and other challenges.
In a community message last month, Temple President John Fry attributed the university’s budget woes to enrollment shrinking faster than its operating costs grew over the past seven years. Fry warned that layoffs would be necessary, though a voluntary buyout program had reduced the potential scope of cuts.
The context: Temple’s situation today echoes that of a year ago. Facing an estimated $60 million budget hole for fiscal 2026, university leadership last summer braced the campus for layoffs and ultimately cut about 50 employees, or about 1% of its workforce at the time. Through those cuts and other job eliminations through attrition and vacant positions, the university worked its deficit down to $27 million.
Since 2021, Temple has excised some $320 million in operating expenses, according to the university.
A shrunken student body is behind much of the financial pressure. Between 2018 and 2024, Temple’s fall headcount fell by about a quarter to 29,640 students. However, the university has seen some improvement of late. First-year undergraduate enrollment reached 5,379 students for the class of 2029, a 9.2% year-over-year increase and the largest-ever incoming class at Temple.
As of July, Temple has received record deposits from first-year admitted undergraduate students, with transfer deposits up significantly as well, Fry said this week, adding, “This is an excellent sign.”
As it heads into the next academic year, Temple plans to distribute $196.1 million in institutional financial aid to undergraduates, a 7% increase from last year and another historical record — as well as another major expense for the institution.
What we’re watching: Along with cost cuts, enrollment stability will be key to Temple’s long-term financial health. The university aims to achieve a balanced budget over the next three years, Fry said in June. This week, he noted that it would take “several more years until we see a meaningful increase in our overall domestic enrollment due to the larger graduating classes in the two years prior.