2026 State of the University

 I want to walk through this chart to help remind everyone of our current fiscal environment. The light blue bars are our non-grant revenue and include gifts. We have produced steady incremental growth over the last couple of years, bolstered further last year by very strong investment returns. The dark blue bars are our expenses. I am pleased that we have ensured a positive margin for the last two fiscal years, and our collective careful financial management has kept us on budget and well positioned to do so again this year. This took a tremendous amount of work across the university, and I am grateful for your patience and collaboration. 

Behind these bars, however, is the reality that, if left unchecked, our expenditures will increase at a much faster rate than our revenues—our margins are small and leave little room for the unexpected. Costs for everything from insurance benefits to utilities to rock salt are more expensive each year. Further, as you know, the university system’s state appropriation will decline by an additional $10 million next year, which is on top of the $7M reduction this fiscal year.  

There are a number of things that make exact predictions of revenue and costs difficult. First, our enrollment is declining and not expected to rebound in the near term, and that affects both tuition revenue and auxiliaries like housing and dining. Secondly, as I mentioned, costs for goods and services — on a national level — are quite volatile. Third, our investment returns and philanthropic achievements vary year to year. But I can say this: our collective financial diligence during the past year has created real progress. I am working with our Vice Presidents and Deans on targeted reductions for FY27, and we can see a path forward that avoids across-the-board cuts of past fiscal years. But I want to underscore that this is not a one-and-done exercise. I’ve tried to move away from talking about “budget cuts” because it implies that the budget is a static thing. Instead, like personal finances, we need to think about this as an ongoing exercise to balance our revenues with our costs. 

One of the key revenue factors is enrollment. This line is our total fall enrollment across our three campuses and online. In recent years, larger graduating classes have been replaced by smaller first-year classes, and we anticipate the same is likely to happen to some degree next fall.  This puts tremendous pressure on our primary unrestricted revenue source: undergraduate net tuition, that is the price our students pay after financial aid. 

Aside from the factors we all know well—demographic decline and a reduction in college-going high-schoolers—there is also new unpredictability in the enrollment process. With application fee waivers now common, students may apply to a dozen schools or more and decide where to attend — if anywhere — long past traditional decision deadlines.  

I’ve seen this firsthand traveling with Kim DeRego, our vice provost for enrollment management. Some of the high school students I met told me that they applied to 15 or even 20 schools and were waiting to see where they were accepted before even starting to narrow down the list and visit campuses.  

As higher education faces this new enrollment reality, we need to lean into the “First Choice Destination” initiatives Jen spoke about earlier to ensure that we effectively, efficiently, and strategically reach out to prospective students near and far. And I ask for all of your help to ensure strong recruitment and retention of our students, whether that means participation in new student days or tours, supporting student retention in advising and teaching, and helping us get the word out about all the opportunities for students here at UNH.

Strategic initiatives 

 As we build our FY27 budget, these fiscal realities reinforce the need to move beyond incremental adjustments and undertake fundamental and strategic change. We need to purposely focus and build on our strengths and adapt to meet the needs and demands of today’s students while finding ways to operate more efficiently. 

For example, in late 2023, Ken Holmes, our vice president for Student Life, saw that recent rounds of incremental reductions were beginning to erode the student experience. Rather than shrinking their way forward, Ken and his team paused and asked a more fundamental question: what does Student Life need to look like to support student success, belonging, and well-being for our students today?  

Together, the team examined values, core services, and systems, separating the essential from the inherited. That work led to a clearer focus on priority services and the decision to consolidate Psychological and Counseling Services, Health & Wellness, and Student Accessibility Services into a single integrated wellness model that will reduce barriers to care, improve coordination, and advance a more holistic approach to student well-being.  

Another shift is taking place with how we manage campus space. As operating costs rise and patterns of use change, we need to adjust our physical plant and utilize our spaces as efficiently and effectively as possible. This year our facilities team evaluated our buildings based on cost of ownership, condition, utilization, and impact on the student experience.  

Based on that analysis, we announced in October we will close six buildings. This space consolidation, which will result in savings in terms of utilities and maintenance costs, is on track for completion by the next academic year thanks to the leadership and partnership of the college deans, unit leaders, and employees who worked closely with facilities and with each other to meet this university-wide goal.  

I’d like to ask Jen to talk about a couple of other initiatives she’s leading.  

Budget Advisory Committee and Model (Provost Riley) 

In order to take better control of our budget, we need to design and implement a new and more strategic budget model and process. Over the past year we have worked with our finance team to improve our current financial planning while adapting through the Workday transition.  

We formed the Budget Advisory Committee late last fall and are engaging that group on some of the big questions that will inform our model and the governance process to support it. Our goal is to put a draft model in place by July 1 to operate in parallel with our FY27 budget, allowing us to test and adapt before shifting entirely in FY28.  

In the meantime, the draft model will allow us to have important conversations about administrative costs, which programs are or are not driving revenue, and ultimately about the responsibility, authority, and accountability of leaders across the university for budget decisions.  

The incremental cost reductions of the last several years have fallen disproportionately on staff, since there was not a more strategic and long-term budget process in place. We want to underscore that we are not proposing moving to a data-driven budget model, but one that is informed by qualitative and quantitative data and transparency.  

As the president shared last week, we are looking forward to welcoming Robert Watling in just a few weeks as our new EVP for Finance and Administration, and I am confident that he, along with Sam Fucile, Sarah Littlefield Connor, and the entire finance team that has served us well over these last few months, will ensure this effort stays on track. 

Online Education 

 I also want to say a few words about our online strategy and how UNH can better serve students today and into the future. The reality is clear: learners are seeking flexibility, clarity, and programs that connect directly to their professional goals, often while balancing work, family, and other responsibilities. 

Online education is a critical opportunity as we respond to that reality. But it is important to be clear about what we mean by that. This is not about moving programs online for the sake of growth alone. It is about working collaboratively with our colleges and schools to extend UNH’s academic strengths to students who would not otherwise be able to access them.  

A coordinated, One UNH and in fact a One University System approach to online and professional studies has been a priority since my arrival. The expectation from our Board is clear, and it aligns with our strategic plan: UNH must offer a more cohesive, coordinated approach to online and professional education, one that supports faculty, maintains academic quality, and aligns with workforce and state needs. 

This effort is necessarily collaborative. Academic programs remain rooted in the colleges and schools under faculty leadership. The role of online education is to provide the structure, support, and coordination needed to deliver those programs effectively to new audiences. It’s instructional design, faculty development, student support, and systems that reduce duplication and fragmentation across the institution.  

This approach also supports quality. Thoughtful growth means evaluating programs carefully, aligning them with demonstrated demand, and ensuring faculty have the support they need to deliver high-quality learning experiences. Taken together, this work strengthens UNH in multiple ways.   

• We are able to better serve adult learners and professionals at different stages of life who are seeking to finish degrees, reskill, or advance in their careers.
• It enables UNH to better support the workforce needs of New Hampshire.
• And it allows the University to reduce reliance on any one student population demographic, contributing to the financial sustainability of the institution as a whole. 

And as you know, I have recently established the leadership structure that will help us move our online strategy forward.  

But education delivery is only part of the equation. We also need to look carefully at what we offer. How does it align with the students we serve and the world they are entering? Collaborative academic program evaluation is a proactive, responsible next step for UNH.  

In the coming weeks, I’ll be sharing more about creating a clear, representative process that allows us to ask the right questions about program health, student pathways, and long-term sustainability at UNH. This forward-looking approach isn’t new for our faculty.  

The Faculty Senate is already leading important work to update and strengthen the general education curriculum. Student needs change over time. A strong curriculum – from general education to majors – must evolve to prepare students for the more complex, interdisciplinary world they will face. General education connects directly to how we think about UNH as a comprehensive university.  

While majors remain important, our responsibility to students goes beyond any single field of study. A UNH education is about building the capacity to think critically, act ethically, navigate a world shaped by AI and emerging technologies, and contribute meaningfully as engaged citizens. I am looking forward to seeing the new general education framework when it comes to fruition this semester.  

We recognize that to make these strategic changes, our faculty will need support. Both the President and I have clearly heard from you about the need to restore professional support for faculty. That is why I am happy to share that we have begun the work of reestablishing a center for faculty development.  

The unit will play a core role in aligning teaching improvement with assessment, accreditation, online learning, and strategic initiatives. The center will also provide support for evidence-based teaching, guidance on emerging technologies and high-impact practices, and mentorship for faculty across all stages of their careers. We believe this is an invaluable investment in our faculty and will lead to even better outcomes for our students. We are working to have the center staffed and active by the Fall semester. 

[President Chilton returns to the podium] 

 Thanks, Jen. And I’ve listed the Industry Engagement Council that we discussed earlier here. These are just a few examples of the types of innovations that we will need to continue to undertake to avoid the across-the-board reductions of the past few years and to position ourselves for the future. The work we are doing on the financial side is about creating capacity, so we can invest in the strategies and programs that elevate our strengths and position the entire university for long term success. 

The Work Ahead: Creating the UNH of the Future Together  

 I want to conclude by circling back to where I started. We have amazing people at this university across all our locations, doing amazing things every day. We have stellar and deeply committed faculty and staff, we have top notch students who impress me every day, and we have amazing physical assets on all of our campuses.  

The challenges that we face today are largely being felt by all of higher education right now, whether that be demographic decline or the questioning of the value of a college degree or perturbations in federal or state funding. Changing those external headwinds is largely out of our control, but we can change and transform our internal priorities and practices.  

The long-term success of such a transformation relies not on top-down mandates, but as higher ed leader Freeman Hrabowski put it, “an authentic ... engagement between strong leaders and empowered actors, a deep and supportive interaction that brings out the best and the most in everyone.”  

I know that we have the people at this university and the leadership, as well as the good will of our partners and supporters. We can and we will be a different and stronger university in five years and beyond.  

Thank you for all you do to help get us there. It’s a great day to be a Wildcat!