Brown Corporation Unveils Game-Changing Operating Budget for Fiscal Year 2026

Brown University Approves Fiscal Year 2026 Budget Amid Financial Challenges

Brown University recently approved its Fiscal Year 2026 budget, projecting $1.87 billion in revenue and $1.9 billion in expenses, resulting in a $29 million deficit. This marks an improvement from last year’s anticipated $46 million deficit, signaling a careful steer towards a more diverse financial model.

As Brown shifts away from relying heavily on tuition, it aims for overall revenue growth to outpace expenses. Employee salaries, wages, and benefits make up 43% of the budget, with $818 million allocated for this category. Additionally, the budget sets aside $503 million for student financial aid, which is crucial for supporting students from various socioeconomic backgrounds.

The Corporation of Brown University approved this budget based on recommendations from the University Resources Committee (URC). Brown’s Provost, Francis J. Doyle III, emphasized the importance of this collective decision-making, especially given the financial uncertainty stemming from potential federal funding cuts.

In light of economic pressures, such as changes in federal immigration policies and funding, Brown recently enacted several cost-saving measures, including hiring freezes and salary freezes for top administrators. These steps aim to fortify the university’s financial resilience while minimizing impacts on teaching and research.

Historically, federal funding threats have posed challenges for universities nationwide. For example, a recent survey by the American Association of Universities found that 77% of institutions are concerned about cuts to research funding. The URC’s proactive planning reflects a broader trend of universities facing financial hurdles and adapting to remain sustainable.

Brown is also expanding its graduate programs as a revenue growth strategy, launching new master’s degrees in areas like sustainable engineering and public humanities. This approach has already seen a 20% increase in new enrollments from the previous academic year.

In terms of financial aid, the budget includes a 7% increase for undergraduates, reinforcing Brown’s commitment to meet students’ demonstrated financial needs. Doyle noted the importance of diversity in the student body, stating that it enriches the academic community and enhances the learning experience for all.

Key components of the budget reveal a balanced mix between revenue sources. Tuition and fees contribute $797 million, endowment payouts add another $350 million, and research funding accounts for $324 million. The endowment payout, which has increased to an all-time high of $350 million for FY26, will continue to support various university programs and initiatives.

Brown’s dedication to maintaining a competitive salary pool reflects its commitment to faculty and staff welfare, with a total of $472 million allocated for staff compensation. This investment is essential for sustaining the university’s academic and research missions.

As Brown navigates its challenges and opportunities, the FY26 budget demonstrates a strategic approach to ensuring long-term financial health while enhancing student support and academic offerings. For more details on the budget, visit Brown’s Office of the Provost.

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