Rhode Island released a report on Oct. 24 detailing that the state faces a projected $400 million deficit by fiscal year 2026 as surplus pandemic funds run out, and the University of Rhode Island has started to prepare.
“The state is projecting a structural deficit and we certainly rely on state support at the university,” said Abby Benson, vice president for Administration and Finance at URI. “The state appropriation is about 10% of our overall budget, so we are keeping a close eye on that and we are continuing to advocate for support.”
The state funding in addition to tuition and fees are lumped into an “Education and General” fund, which is allocated broadly across the university and approved by the Board of Trustees every February.
URI submits their projected tuition revenue to Gov. Dan McKee before the state budget can be drafted and released, which the university has already done, according to Benson. The governor’s budget will be released in January 2025, which URI can then look at and assess.
Included in the requested budget for FY2025 , the Board of Trustees requested in their initial projection phase to increase tuition by 3% for all students, which Benson stated was not a final decision. In addition, URI requested a state appropriation budget of $23.3 million more than the previous fiscal year. These requests will first be reviewed by the state before a budget is sent out for final review.
After these have been reviewed by the state, the university can see what the governor has proposed for a state-wide budget and further actions can be taken to advocate for higher university funding. This process takes place between February and May, according to Benson.
It is still too early to predict whether tuition will increase or not, Benson said.
“It’s definitely premature to know what impact, if any, it’ll have on the university, but our job is to make sure that the legislators and the governor know what a great investment URI is and that investing in URI is good for the state and good for all of us,” Benson said.
On a state level, despite the looming lack of funding, the enacted FY2025 budget represented an increase of $95 million dollars. The document forecasts that this will be the last year the budget will remain in balance, as “a series of growing deficits will emerge for FY 2026 and beyond,” according to the governor’s Office of Management and Budget .
By 2030, the state projects a $683 million deficit, and additionally stated in the FY2026 budget document that this estimate may reflect an accurate scenario if policy intervention does not take place.
“We’re hopeful that the state will continue to invest in URI, at least at the level that it has last year,” Benson said. “That’s part of the reason we try to make a very solid case for the fact that there is really return on investment.”
The Office of Administration and Finance continues to plan for FY2026, according to Benson, although she remains hopeful that state appropriation will reflect similar amounts to previous years.
“We’re definitely aware of the broader situation, we remain really positive about the university,” Benson said.