April 2, 2025
Dear colleagues,
We write today to provide you with an update on efforts to achieve our current fiscal year’s budget goal and plan for fiscal year 2026 (FY26).
Strengthening our financial foundation is imperative and is now even more urgent given federal-level changes that threaten all of higher education. Universities across the nation, particularly those that conduct research funded by federal grants, are experiencing or anticipating significant cuts that will have immeasurable, negative impacts internally and externally. The future of the Department of Education and its multiple services, including managing federal financial aid processes and disbursements, prevents a clear vision and weakens confidence. Costs for goods and services only continue to rise.
With your assistance, we have been making solid progress, and by continuing to focus on strategic priorities, reducing non-essential activities and developing efficiencies, we will successfully reach our goals and be in a stronger position.
Current Fiscal Year
Through a series of measures intended to slow spending, including limiting travel, slowing non-essential spending and strategic personnel decisions, we have seen a slight improvement to the university’s FY25 budget. At the start of the fiscal year, we budgeted a $14.9 million deficit, and as of the second quarter, are projecting an improved deficit of nearly $14 million. We anticipate seeing a smaller projected deficit in the third quarter, which will be presented to the Board of Trustees at the May meeting of the Finance, Audit, Compliance, Facilities and Operations Committee. We need your ongoing good fiscal stewardship to continue improving the deficit and strengthening our cash position.
Position Control
As we have previously communicated, the university has taken several measures to more strategically use our personnel resources. This includes reducing reliance on extra help, additional pay and non-essential overtime. We have seen noteworthy improvement in reducing additional pay but are not on track to meet specific goals related to extra help and non-essential overtime. Division and college leadership are working to address the gaps and find appropriate, strategic solutions, and Human Resources will continue to approve non-essential overtime.
In our Jan. 23, 2025, message, we shared that Senior Associate Vice President and Chief Human Resources Officer John Acardo had assembled a cross-functional team of budget, finance and business managers, along with colleagues from DoIT, to identify best practices in position-control from peer institutions. The team developed recommendations specific to staff positions that were reviewed by leadership, deans and shared governance groups. Effective immediately, the university is implementing the recommendations with a new position-control process for staff positions. Faculty, extra help, student positions and positions funded by grants or Foundation accounts are excluded.
Staff position-control will help the university strategically manage its workforce by tracking positions, identifying resource needs and planning for operational demands when vacancies arise or new roles are proposed. The Staff Position Control Review Group (SPCRG)—comprised of the executive vice president and provost, the vice president for Finance and Administration/chief financial officer and the chief Human Resources officer—ensures a thorough and standardized review process. The group will meet biweekly to assess position requests, considering organizational needs, classification and equity. Requests must be endorsed by the division leader before submission, and outcomes can include approval, modification or denial, with any appeals directed to the chief strategy officer.
When a staff position becomes vacant, supervisors must promptly notify Human Resource Services, which will guide next steps, including benchmarking and obtaining division leader input and support. Funding and the position will be frozen for 60 days unless an exemption is granted by the SPCRG. Expedited reviews can be requested for critical positions.
Next Fiscal Year
NIU leadership is committed to achieving an academically responsive and fiscally responsible FY26 budget and doing so in a manner that is collaborative and transparent. Each division and college received its budget planning materials in late February and has been working within its respective area to ensure strategies and activities align with university goals and reflect division/college priorities, and to identify opportunities to enhance effectiveness and efficiency. Academic Affairs will submit its budget request by Friday, April 4, to meet operational objectives for the colleges and other units in the division. Remaining divisions will submit their requests by Friday, April 11.
Details about the process, who is involved and the timing are available on the Budget and Planning website under the Next Fiscal Year tab.
Remainder of the Semester
As the semester progresses, schedules are filling up, deadlines are approaching and time seems to be moving faster. We will continue updating the budget website as needed and will communicate any changes through the Monday morning announcements. We need all employees to remain diligent, use good judgment when it comes to utilizing staff and financial resources and slow and/or eliminate spending on non-essentials.
We greatly appreciate your commitment and efforts. We’ve been meeting frequently with colleagues across the university, shared governance and shared leadership this academic year, and it is gratifying to not only see new or renewed interest in our financial sustainability goals, but also a tangible willingness to collaborate and support. We are always stronger together.
Together Forward,
