Fiscal Year 2026
July 1, 2025 – June 30, 2026
NIU’s FY26 balanced budget was approved by the NIU Board of Trustees at their June 12, 2025 meeting. Information on anticipated FY26 expenses and revenue will be added to the site by mid-September.
FY25 concluded on June 30, 2025, and the university is currently implementing the financial closeout process that includes reconciling accounts, finalizing all revenues and expenses, and recording any necessary accruals or adjustments. This ensures that the university's financial statements accurately reflect the prior year’s activity and comply with accounting standards. Final FY25 analysis will be presented to the NIU Board of Trustees at their Nov. 13 Finance, Audit, Compliance, Facilities and Operations Committee meeting and then posted to the site.
Change is critical to NIU’s success. As stewards of the university and champions for our mission, vision and values, each division must lead with a trustee-mentality to strengthen the overall fiscal health of the institution, because no department or division can be successful without a strong NIU.
NIU has traditionally used an incremental budget model that connects budgets to the prior year’s spending. Each new fiscal year’s budget starts with the previous year’s activities as a foundation, and adjustments up or down are made to be responsive to elements such as projected revenue, expenses and enrollment, as well as personnel costs such as increments. In this model, spending levels are based on historical behaviors and trends rather than necessary activities and priorities.
Achieving a structurally balanced, sustainable budget for FY26 requires divisions and colleges to rigorously challenge the assumption that all our current activities are justifiable as priorities aligned with the university’s strategic goals. This calls for taking a fresh, collaborative approach driven by objectivity, creativity and a commitment to change.
For FY26, as a precursor for multiyear planning, NIU is shifting away from incremental budgeting and instead is utilizing a variant of “zero-based budgeting” modeling to establish a structurally balanced budget. This process will involve collaboratively building the budget from the ground up, targeting an overall reduction of $20 million, as outlined in the 2025 university goals, through strategic reductions and realistic revenue growth.
NIU leadership is committed to achieving an academically responsive and fiscally responsible budget and doing so in a manner that is collaborative and transparent. Throughout the FY25 university goal development and approval process, and deficit mitigation efforts, NIU senior leaders have regularly communicated and engaged with university leadership; shared governance groups, including Faculty Senate, the councils and the ad-hoc RSB committee, the President’s Budget Roundtable; at board meetings; and in all-employee communications.
The information below details the process, including steps taken and steps to come.
NIU submits proposed FY26 appropriation budget requests to the NIU Board of Trustees and the IBHE.
President Freeman meets with NIU leadership and shared governance groups to discuss and receive feedback on proposed 2025 university goals.
NIU Board of Trustees approve 2025 University Goals.
Gov. JB Pritzker announces proposed FY26 State Budget. Proposal includes a $3 million increase to NIU’s state appropriation.
NIU vice presidents and deans receive necessary guidance and materials to begin working with their teams to develop their proposed FY26 budgets.
Budget software training and informational sessions for leadership and budget managers.
Budget Office meets with vice presidents regarding each area’s anticipated revenues for FY26.
Senior leadership engages President’s Budget Roundtable, ad-hoc Resource, Space and Budget Committee, Faculty Senate and budget managers to discuss budget planning progress, hear feedback and answer questions.
Academic Affairs to submit proposed FY26 budgets to Division of Administration and Finance.
Remaining divisions to submit proposed FY26 budgets to Division of Administration and Finance.
Division of Administration and Finance compiles, processes and prepares materials for evaluation.
President Freeman and NIU leaders present the university’s budgetary needs by testifying before the Illinois House and Senate appropriations committees in Springfield. These testimonies help inform legislative budget negotiations.
President Freeman, the executive vice president and provost, the vice president for Administration and Finance/chief financial officer, the chief strategy officer, the AVP and chief Human Resources officer and the senior associate vice president of Institutional Communications will meet as a group with each division vice president and their budget managers to achieve a shared understanding of the priorities, strategies and implications of the division’s budget submission. After these meetings, VPs can choose, or be asked, to revise their proposed budgets.
President Freeman, the executive vice president and provost and the VP for Administration and Finance/chief financial officer meet to develop different options and scenarios for the FY26 university budget, including proposed divisional allocations.
The Illinois General Assembly approves a budget bill that is then sent to the governor’s office for signature. The governor then signs the budget bill into law, enacting it for the upcoming fiscal year.
President Freeman, the executive vice president and provost and the vice president for Administration and Finance/chief financial officer to provide information and materials on options/scenarios for FY26 budget and divisional allocations to senior leadership, deans and the ad-hoc Resource, Space and Budgeting (RSB) committee, President’s Budget Roundtable (PBR) and Academic Planning Council (APC). Leadership will then meet with each group for discussion and feedback.
President Freeman, Executive Vice President and Provost (EVPP) Elish-Piper and Vice President for Administration and Finance/Chief Financial Officer (CFO) Middlemist will reconvene the ad-hoc Resource, Space and Budgeting (RSB) committee, President’s Budget Roundtable (PBR) and Academic Planning Council (APC) as a follow up to their meeting on 5/12 to listen to any additional feedback and answer any outstanding questions.
Feedback and ideas from leadership, deans and shared governance will be considered by President Freeman, EVPP Elish-Piper and CFO Middlemist as they craft the university’s FY26 budget recommendation to the NIU Board of Trustees.
NIU posts Board of Trustees agenda and report, including FY26 budget recommendation, prior to the June 12 meeting of the NIU Board of Trustees.
FY26 begins.
Have ideas or suggestions related to NIU’s finances and multiyear budgeting goals?
Please email budgetandplanning@niu.edu.