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NIU reports smaller FY25 deficit but warns one‑time revenue masks larger shortfall; FY26 planning under way
Summary
CFO George Middlemiss told the trustees’ finance committee NIU’s third‑quarter results showed improved net revenue but administrators said a one‑time $8 million item inflates FY25 results and the university plans a modified zero‑based FY26 budget to close a larger underlying gap.
Vice President and Chief Financial Officer Dr. George Middlemiss presented the university’s quarterly financial summary, cash and investments report and an early preview of the fiscal‑year 2026 budget to the finance, audit, compliance, facilities and operations committee on May 14.
For the third quarter ended March 30, Middlemiss reported all‑funds revenues largely in line with budget and expenditures slightly above budget, producing third‑quarter net revenue of about $46 million. Year‑to‑date results were higher than the previous year by about $11.4 million, primarily because of timing differences and stronger miscellaneous and investment income. Middlemiss said current‑year projections show an improved budget deficit of about $13.2 million compared with the original budgeted shortfall of roughly $14.9 million.
Committee members and Middlemiss cautioned the numbers include a nonrecurring $8 million item tied to a prior sale of iFiber; removing that one‑time revenue would make the underlying deficit closer to $22–$23 million going into FY26. The cash and investments holding summary showed total holdings just under $141 million on March 31, of which roughly $25 million is available for daily operations — about 20 days of cash on hand. Approximately $54 million of the holdings represent project funds for the Trane energy‑efficiency project.
Middlemiss said investment earnings for the quarter totaled about $1.6 million and produced an annualized return of approximately 4.38 percent, an increase over the prior year. He and trustees emphasized that personnel spending in March came in lower than projected, reflecting mitigation actions begun on campus.
On the FY26 preliminary budget, administrators said key drivers include an expected state appropriation increase, higher tuition, housing and dining income, and a reduction in debt service; those gains may be offset by anticipated declines in gifts, grants and contracts and by any negotiated salary increments. The FY26 plan is being built using a modified zero‑based budgeting approach with targeted reductions, shared‑services initiatives and other mitigation measures. Trustees were reminded that campus advisory groups are meeting in late May to review scenarios and that the board is scheduled to consider an internal FY26 budget at its June 12, 2025 meeting.
No vote was required for the information items. Trustees thanked campus staff for mitigation efforts and stressed the need to preserve cash and protect core academic functions while the university works toward a balanced budget.
