Temple University recently announced that it has approved its fiscal year 2027 operating budget, which includes tuition increases, budget reductions, and job cuts as the university tries to address a structural deficit.

The university’s Board of Trustees, acting through its executive committee, officially approved the $1.3 billion operating budget on July 8, which is designed to reduce operating expenses by about $60 million across schools, colleges, and administrative units, according to The Temple News.

Temple President John Fry said in an open letter to constituents that the university has been managing a structural deficit in which recurring expenses have exceeded recurring revenue, adding that the gap is tied largely to a decline in domestic enrollment, which decreased by more than 25% between fall 2017 and fall 2025 that resulted in reducing tuition revenue. 

The budget also includes tuition rates for the 2026-27 academic year, which are increasing by an average of 3.4%, The Temple News reported. Base tuition is now $10,188 per semester for in-state students and $18,300 per semester for out-of-state students, according to the student newspaper, which also highlighted $196.1 million in undergraduate financial aid within the budget, up 7% from $184 million in 2025.

Position reductions are part of budget plan

In his letter, Fry said a significant part of the budget reduction is being achieved through the elimination of 236 positions across the university, of which more than 80% are coming through voluntary retirements, resignations, or the elimination of vacant positions—including more than 70 faculty members who participated in the university’s voluntary retirement incentive program.

About 40 employees will be directly affected by the cuts, representing less than 1% of Temple’s workforce, the university says.

Enrollment remains central to financial outlook

Temple says nearly 80% of its operating budget is supported by tuition and fees, making enrollment trends a major factor in its financial condition. And that's a good thing given that, as of July 1, Temple had received a record number of deposits from admitted first-year undergraduates. Transfer deposits were also up significantly compared with the previous year with 3,268 first-year students were registered for fall, compared with 2,407 on the same date last year.

In spite of some of the encouraging signs, Fry noted that it will take several years before stronger incoming classes produce a meaningful increase in overall domestic enrollment because of larger graduating classes in the two prior years.

Why this matters

Temple’s budget action shows how enrollment decline can affect nearly every part of university operations, from tuition pricing and financial aid to staffing, budget models, and long-term planning. For higher education facilities and operations leaders, financial pressure can influence staffing levels, maintenance priorities, capital projects, space utilization, and the pace of campus reinvestment.