kind of online strategy we want to have. Provost Pease will bring forward a strategy report to the board in February 2027. For the summer orientations, Board members reiterated that the goal is for all students who leave orientation have a schedule for fall quarter.
• Finance and Administration Committee o Committee Report
Trustee Conner reported that the Finance and Administration Committee met earlier this week. Staff presented the committee with a preview of the FY26 operating results and a comparison of the FY27 budget to what was shared at the May board meeting. Despite a positive FY26, staff presented a FY27 budget that continues to include a structural deficit for the fifth consecutive year. The committee discussed efforts taken and planned to eliminate this structural deficit to stop relying on salary and benefits savings. More work needs to be done for this effort. In addition, the committee received an update of ongoing capital projects across the university and the planned submission for the capital state request. Finally, the committee heard updates on information security and internal audit. The group discussed looking at our strategy to begin to live into our new reality of being an 8100-8500 university. o Budget Presentation VP Klucking gave an update on the budget development process. The team, which consists of four staff from Finance, four academic affairs members chosen by the provost, VP Klucking, and Provost Pease. The group starts meeting in December and meets every two weeks to identify key drivers. The first major deadline is at the end of February, where based on enrollment prediction, they develop a budget for instruction. After February, the group is in constant revision mode adding or subtracting from the budget based on latest information. The President’s Budget Advisory Committee, which is comprised of 15 employees, based on shared governance constituency, meets quarterly at a minimum. These meetings are held to keep people informed of how the budget is being developed, so they can share with their constituents. VP Klucking also shares budget development with additional audiences that include the WFSE Bargaining Team, Teamsters Bargaining Team, PSE Bargaining Team, Faculty Senate, and divisional leadership teams. VP Klucking shared FY27 State/Local budget comparisons. Despite projected mild enrollment decline, revenues increased due to rates and state support. On the expense side, there is no estimate for salary/benefit savings yet. Some teams were shifted from self-support. We have some potential savings in waivers pending enrollment and student mix. There is also a 200-student enrollment contingency included in the budget. The expected bottom line is a $2.5M deficit. In the FY27 System funds the Wildcat Shop course materials fee offset lower than expected participation in housing and dining for revenues. On the expense side, good labor cost management was offset by higher repairs and maintenance. Our debt service coverage is expected to be between 1.3-1.4. VP Klucking then pointed out progress that has been made on liquidity – cash on hand. Since 2024, they have been actively trying to manage our cash to increase it over time. VP Klucking commended Erin Sargent, treasury manager, for being aggressive with cash management. The FY27 Athletics budget ($7.9M), which is an action item at Friday’s meeting, was shared with the group. VP Klucking reminded the group that at its May 2025 meeting, the Board approved the FY26 S&A budget and requested that the committee develop a revised recommendation for the remaining three years of the quadrennium based on feedback received. The proposed budget for fiscal years 2027-2029
10 Board of Trustees Minutes July 16-17, 2026
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