Dear University of Maine and University of Maine at Machias colleagues,
Yesterday I was joined by my leadership team in presenting UMaine’s FY27 budget proposal to System leaders, including Chancellor Dannel Malloy, Vice Chancellor for Finance & Strategic AI Integration Ryan Low, Board Chair Trish Riley, and Finance, Facilities & Technology (FFT) Committee Chair Roger Katz.
As you may recall, when the university issued our FY27 budget development instructions in early December, we projected a structural deficit of nearly $18 million. To close that gap, we asked all colleges/units, including administrative and executive offices, to develop proposals reducing their E&G expenses by 7% in the coming fiscal year, which we acknowledged would require difficult choices.
I want to sincerely thank college/unit leaders, their teams, and my Cabinet for their outstanding work over the last three months that enabled us to present the System with the balanced budget required for our university. While our full proposal will be made public next week, consistent with the System’s long-standing budget process, I wanted to provide you with an overview of our strategic approach to closing this gap while serving our students and state and maintaining our workforce as Maine’s land, sea, and space grant, R1, and D1 institution:
- $5.6 million in ongoing reductions to college/unit operating budgets. Notably, we are achieving these savings without faculty retrenchments and with fewer than 10 staff layoffs. This approach is in contrast to widespread cuts at other public and private institutions across the country. It reflects UMaine’s unwavering commitment to our faculty and staff — including our graduate student workers — who make our excellence and impact possible.
- $5.7 million through one-time solutions, including through attrition and benefit savings, and utilization of gift/grant funding. We recognize the challenges of retirements and some positions going unfilled, including a minimal loss of credit hours, though this proposed attrition level is consistent with FY26. While the number of full-time administrators has declined by 23% over the past five years, the total number of regular full-time employees at UMaine and our regional campus in Machias has decreased by just 0.7%, according to the System’s annual headcount report.
- $2.3 million in additional State appropriations, with tremendous thanks to the System for this additional allocation and the Legislature and Governor for their strong support of our university.
- Strategic one-time use of reserves, as we have relied upon since FY22.
On the revenue side, it is important that you know our budget proposal reflects a projected 2.6% decrease in credit hours relative to FY26 actuals, though there is a real opportunity in the coming months to grow enrollment and enhance retention. Currently, matriculations for Fall 2026 are up 9% over last year at this time, and as I shared during my State of the University address last week, more than 14,000 students have been admitted to UMaine and UMaine Machias but have not yet confirmed their intent to enroll in New England’s most affordable flagship. Our collective actions during the critical enrollment period between now and May 1 — including our promising recruitment efforts and the positive stories we share about the university — will help build on the historic level of capital improvements and academic and research innovations already underway to attract new learners for the incoming fall class and ensure our long-term financial health.
Our budget proposal is a statement of our priorities. It is informed by your thoughtful contributions to our ongoing Strategic Re-Envisioning, our commitment to the success of our students and state as Maine’s engine of educational attainment and economic mobility, and our responsibility to effectively steward our limited public resources. I am pleased with how our FY27 submission was received by System leaders, including their pointed questions and constructive ideas, and grateful for their confidence in me, my Cabinet, and our university.
Transparent budget process
In the coming months, there will be multiple opportunities for faculty, staff, and students to review and ask questions about our FY27 budget proposal before it is finalized and adopted by the Trustees in late May. These include, but are not limited to:
- Monday, March 9 — Research Funding Forum (Recording and materials will be posted here later this week)
- Tuesday, March 17 — Materials for March 25 FFT Committee Meeting publicly released (FFT materials to be posted here)
- Monday, March 23 at 1 p.m. — UMaine Budget Town Hall (Wells Conference Center and livestream) with follow-up Machias-specific Town Hall on March 25 at 11 a.m. led by Dean Walsh (Torrey 232)
- Wednesday, March 25 at 9 a.m. — FTT Committee Meeting to review FY27 budget proposals (Livestream here)
- Wednesday, April 15 at 9 a.m. — FFT Committee FY27 budget workshop (Livestream here)
- Wednesday, April 29 at 9 a.m. — FFT Committee FY27 budget vote (Livestream here)
- Monday, May 18 — BOT Meeting: Public comment session, final FY27 budget review and approval (UMFK and livestreamed here)
Now that our FY27 budget proposal has been presented to the System, I look forward to permanently filling the Vice President for Finance & Administration and Chief Business Officer position, which will be posted later this week for internal candidates.
With regional demographic pressures, the rapidly changing federal landscape, and rising costs we cannot control, the FY27 budget development was the most difficult since I joined UMaine and UMaine Machias as President in 2018. Thanks to record levels of public, private, and philanthropic investment that recognize UMaine’s leadership and the importance of our high-quality, high-value education and world-class research; the imaginative, interdisciplinary ideas that have emerged from our re-envisioning work; and the dedication of a trusted and deeply committed Cabinet, I am proud of the FY27 proposal we presented today. I am confident it positions our university to build on our momentum and continue moving Maine forward.
The closing thought I shared with System leaders yesterday is the same one I share with you now: this FY27 budget proposal is not simply a financial plan — it is a promise. It reflects our shared commitment as Maine’s flagship university to serve the people of this state — including our more than 10,000 students and 2,200 regular employees — and well beyond with excellence, innovation, and integrity.
Together, we are shaping a university that is stronger, more collaborative, and more impactful for the students and communities we serve. Thank you for your partnership in this important work.
Sincerely,
Joan Ferrini-Mundy, President
University of Maine and University of Maine at Machias
