NIU committee hears Q3 financials showing $2.8M projected FY26 deficit; approves $743,000 Foundation contract

The Finance, Audit, Compliance, Facilities and Operations Committee received quarterly financial reports showing the university is projecting an all‑funds fiscal year 2026 deficit of $2,800,000, an improvement from a $4,000,000 shortfall projected in the second quarter. George (speaker 11), presenting the Q3 summary, attributed most of the change to a $2,000,000 reduction in expected state appropriations while noting tuition and fees are forecasted to come in $1,400,000 above budget; overall revenues were presented as roughly $1,200,000 below budget for the year.

"Based on current trends, fiscal year 26 is projected to close with an all funds deficit of $2,800,000 compared to the originally planned budget," George said, and he identified scholarship spending (projected $4,200,000 over budget) and personnel services as primary expense drivers. He said contractual services are performing under budget, with projected savings of about $2,100,000, and that the university is pursuing position restructuring and other cost controls.

In a follow‑up report on cash and investments for the period ending March 31, George reported total university holdings of about $101,000,000, of which approximately $21,000,000 is tied to a 2024 tax‑exempt energy efficiency financing and about $35,000,000 is available for daily operations (roughly 27 days of cash on hand). He cautioned that cash balances are cyclical and typically decline in the last quarter of the fiscal year.

Trustees praised leadership for progress on mitigating the deficit but also urged care in cuts so the university does not eliminate essential capacity if enrollment improves. A trustee asked for confirmation that $2,000,000 in expected state funds had been pulled back; George confirmed that figure.

The committee approved one action item: the fiscal year 2027 NIU Foundation professional services contract at $743,000, unchanged from FY26. Trustee Leland Strom moved the motion and Trustee Eric Wasowitz seconded; the committee approved the item by voice vote and the presenter asked the president to forward the item to the full board for consideration at the June 4, 2026 meeting.

The committee also received a preliminary FY27 budget summary outlining a zero‑based budgeting approach and a working assumption of a modest increase in the state's appropriation to $104,700,000. All items presented at the committee were informational except the Foundation contract, which was endorsed for full board approval.