Fellow Bears,
We wanted to take a moment to express our gratitude to the hundreds of faculty, staff, and students who joined us last month for Budget Town Halls. Your participation and engagement were invaluable, and we appreciate your continued commitment to our university and the communities we serve. If you were unable to attend, we have posted a video recording of the virtual session on the Office of the President’s website. We encourage you to take a moment to watch it at your convenience.
We write today to share an update on the University of Northern Colorado’s financial health and budget outlook and how actions we each are taking now to manage our spending have helped reduce a projected budget shortfall in this fiscal year and move us closer to entering the next with a balanced budget.
As we shared with the UNC Board of Trustees last month, the FY24 forecast now projects an operating loss of $3.8 million, which is a $2.4 million improvement from the initial forecast based on the results of the first fiscal quarter. Our forecasted FY24 “Net Change in Operating Cash,” which includes the impact of additional accounting and timing adjustments and reflects the ultimate impact of operations on our cash reserves, has improved to a projected loss of $1.8 million, down from $4.2 million. While work is still needed to fully eliminate the shortfall by the end of the fiscal year, it is clear that our collective efforts are paying off. The progress is a direct result of the work each member of the university community is doing to make thoughtful choices about spending through the remainder of the year. We understand that the decisions have not been easy, and we want you to know that we appreciate your commitment to prioritizing the long-term health of our university.
For example, non-personnel expenses are now projected to be $0.7 million under budget. This $1.4 million improvement from the initial forecast is due, in part, to efforts to prioritize only essential travel through June. We recognize the very real impact this has had on those who may have deferred professional development opportunities or reduced the number of people traveling to offsite events. However, the decisions across campus by faculty, staff, and students to delay plans for non-essential travel mean that we will collectively be in a more stable position moving into the next fiscal year.
We are also seeing improvements in personnel spending, with a shortfall now projected to be $0.7 million, which is down from the initial forecasted overspend of $2.2 million. This is a result of efforts to carefully review vacant positions and prioritize our most urgent hiring needs. In some areas, a delay in filling a position has required existing faculty, staff, or students to help temporarily fill in to meet existing needs. In other instances, the implementation of a project may be postponed until staffing is in place. We recognize and appreciate that UNC already functions with a lean organization, and the impact of any vacancy is felt. We thank each of you for continuing to work at a high level in service to our strategic plan priorities, including our commitment as a Students First university.
We understand that each of these interim measures — and other mitigation strategies being employed in units across campus — are difficult. But they are steps we must collectively take to manage our expenses for the long-term health of our university. We value knowing that we have a shared interest in working together to meet any challenges.
We also want to take this opportunity to express our appreciation for your thoughtful engagement in the FY25 budget planning process. We have completed the first round of budget adjustment submissions from all divisions. All your efforts have made a significant difference already, and we have closed by more than half the previously projected shortfall for the next fiscal year. We still have work to do, and the second-round analysis and adjustments are in process. Our target remains a completely balanced budget, and with the progress we have made so far and anticipated changes to come, we are optimistic that we will realize that goal.
In the coming months, we will continue to work with the Budget Advisory Committee to inform budget planning for the next fiscal year and align resources with university strategic priorities. We will share updates with the university community as we move forward.
UNC is an amazing institution with a bold vision that simultaneously draws on our fundamental mission to empower people to realize their fullest potential and positions the university over the next decade to better serve our region, the state, and beyond. Thank you for being part of this dedicated community of Bears.
As always, if you have any questions, suggestions, or concerns, please reach out to us directly.
Sincerely,
Andy Feinstein 
President
Dale Pratt
Vice President for Finance and Administration and Chief Financial Officer
