FY2023 Budget Outlook
Our initial budget outlook for FY2023 shows a $6.8 million deficit, driven primarily by a 5% Change in Employee Compensation (CEC) and health insurance increases as recommended in the Governor’s budget. The Governor’s budget recommendations are currently being discussed by the Joint Finance Affairs Committee, and will then go to the full legislature for review and approval.
In addition to the CEC, the Governor’s budget recommendation includes funding for a positive enrollment workload adjustment and key investments in our nursing program, clinical placement resources, advising and tutoring, and nuclear programs in partnership with the University of Idaho and Idaho National Lab.
After holding base tuition rates flat for the past two budget cycles and absorbing unfunded CEC that adds to our structural deficit, ISU will need to consider a modest tuition rate increase in FY2023 to balance some of the costs of a 5% CEC and other inflationary factors.
We will use one-time reserves to balance the remainder of the budget gap, allowing the Budget Model Advisory Group time to complete the design of a comprehensive budget model for the FY2023 cycle.
Finally, we will pause strategic investment funding for FY2023, as there are no new funds available. Instead, we encourage units to look holistically across all funding and operations to resource strategic priorities within base budgets and projected revenue streams. This can include reallocating vacant lines, reorganizing staff and support functions, and reviewing current expenditure practices.
