The University of Maine is projecting a $19 million structural budget gap for fiscal 2028 unless it makes permanent changes to expenses and revenue, adding new financial pressure as the flagship institution confronts enrollment challenges, federal funding uncertainty, and decades of deferred maintenance.

In an open letter to the university dated Sept. 17, UMaine President Joan Ferrini-Mundy and Provost Gabriel Paquette wrote to colleagues explaining that operating costs have risen faster than state appropriations and tuition, while tuition revenue has been flat or declining because of demographic and other enrollment pressures. Federal changes also have affected research funding, financial aid, and access for some students, particularly international students.

Ferrini-Mundy and Paquette explained in the letter:

“We have stepped up efforts to address decades of deferred maintenance, which is crucial for student and employee recruitment, retention, and success. As a result, we face a significant and growing structural gap.”

The university says previous measures have left it with fewer short-term options. Education and general reserves have declined, unit operating budgets have already been reduced, and one-time funding and savings have been used extensively to avoid deeper personnel cuts. As a result, UMaine now says it has to pursue longer-term structural changes.

Deferred maintenance adds to the financial pressure

A big part of those changes will involve the university’s facilities. In her State of the University address in March, Ferrini-Mundy placed UMaine’s total deferred maintenance “daunting” burden at approximately $1.1 billion, while describing the increasing cost of operating what she called a large and, in some cases, “antiquated physical plant.” She also cited unexpected repairs and equipment failures—including chillers, steam infrastructure, and other building systems—as contributors to financial pressure during FY26.

UMaine said that increased debt service associated with tackling long-deferred infrastructure needs is also a big part of its budget problems. The university entered FY27 planning with a projected shortfall approaching $20 million before it identified reductions and other measures intended to balance the budget.

To get there, decisions about aging buildings will take on even greater importance for the university. For example, earlier this year, UMaine approved plans to remove Crossland Hall, an 11,200-square-foot building carrying approximately $10 million in deferred maintenance and unfunded modernization needs, concluding that renovating the building wasn’t financially justified and instead planned to relocate the Franco-American Centre into renovated space elsewhere on campus.

A 2024 facility-condition study cited by UMaine assigned Crossland Hall a net asset value of zero. The university estimated a like-for-like replacement project at about $6.4 million when associated project costs were included, compared with roughly $10 million to modernize the existing building.

Additionally, Facilities Management also identified several other older or underused buildings for eventual removal, including Libby Hall, South Annex E, and portions of the York Village housing complex, as funding and approvals become available according to its capital construction updates.

Personnel reductions are part of FY28 plan

UMaine added that staff layoffs and faculty retrenchments will be necessary as part of the FY28 restructuring as well, although specific positions haven’t been shared publicly yet.

Academic Affairs, which accounts for about half of the university’s budget, has been advised to reduce its base expenses by $10 million. So far, the department is expected to permanently eliminate about one-fifth of vacant positions, reduce overload teaching and other instructional spending, consolidate course sections, and cut some forms of additional compensation. Those measures are expected to produce approximately $2.1 million in recurring savings.