Fiscal Year 2026 Strategic Budget Announcement

Boston University Office of the President

August 22, 2024

Dear University Leadership Group Colleagues,

As we enter the fall semester and begin the fiscal 2026 budget cycle, we are announcing a shift in how we approach budgeting across all Provost and Administrative departments outside of the schools and colleges, excluding Metropolitan College. We will be transitioning from our current incremental budgeting model to a more dynamic and forward-looking strategic budgeting approach.

Incremental budgeting has served us in the past, but it is not without limitations. This model often assumes that past expenditures are the best indicator of future needs, which can hinder innovation and adaptation. Transitioning to a strategic budgeting approach will allow us to improve financial efficiency by directing resources more purposefully toward areas that align closely with our strategic priorities. It will also allow us to understand patterns, gaps, and redundancies.

This transition comes at a pivotal moment for Boston University. As we set an ambitious plan for the university, there is an opportunity for us to reassess and realign our resources to better support our long-term vision and achieve operational excellence. We understand that this shift will require significant effort from all of you, and we want to acknowledge the hard work that lies ahead. However, this change is essential for the long-term benefit of Boston University, ensuring that we continue to thrive in an increasingly complex and competitive landscape.

Thank you in advance for your dedication and collaboration as we embark on this important transition. More detailed information and guidance will be provided by the Budget and Planning Office and the Academic Budget Offices in the coming weeks. For a complete list of departments impacted, refer to Appendix A.

Together, we will ensure that Boston University remains a leader in higher education, with the resources and strategic vision to achieve our shared goals.

Sincerely,

Melissa Gilliam                                                                   Gloria Waters

President                                                                       University Provost and Chief Academic Officer