(WACO, Texas) — Baylor University is facing significant budget and financial pressures, including a $30 million budget deficit, and the university will now be cutting back on spending.
In a memo sent out by the president, Baylor outlined a plan to reduce costs across campus. Baylor's operating budget was reduced by 1.4%, from $995 million to $982 million, for 2027.
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Rising costs, tuition discounting, enrollment, and spending that is exceeding the university's revenue are all factors behind the shortfall.
"The financial climate for universities is just going to be challenging in the years ahead," Baylor University President Linda Livingstone said in an interview with The Baylor Lariat, which was shared with 25 News by Baylor's communications team.
Livingstone said the university is focused on more than just cuts.
"It's not just about reductions. The more we can find new revenue sources, the more we can shore up and ensure that enrollment is strong, the less pressure there is on the budget," Livingstone said.
One of the biggest factors was a higher-than-expected tuition discount rate for incoming students.
"Our discount rate was higher this year with our incoming classes than we had maybe originally budgeted for, and that's a good thing because at least we're giving more financial aid to help students make it affordable, but that is an expense on our budget. So that is certainly one of the factors that played into this," Livingstone said.
Starting now, hiring for both faculty and staff will be put on pause.
"Very limited exceptions for some key roles that might relate to some important areas that we don't want to reduce staffing in, but in general, it will begin immediately," Livingstone said.
Per the memo, the university will also delay large capital and equipment purchases and defer non-critical construction projects.
"And it doesn't mean that those other things won't get done at some point, but it may mean that it slows a bit the progress we make in some other areas. We haven't gone back and looked in great detail at that strategic plan at this point. But that will certainly part of the exercise as we go forward," Livingstone said.
The university also found $35 million in operational cost savings, which mitigated a tuition increase.
"In order to try to buffer increases, intuition. We know that we've got to really continue to be as efficient as we can be in our operating expenses," Livingstone said.
Livingstone said the university is in a strong financial position and that these decisions will prioritize Baylor's Christian mission, student experience, and research enterprise.
