American University’s budget for fiscal year 2025 will total $860 million, compared to $894 million this year, Board of Trustees Chair Gina Adams announced in an email Thursday afternoon.
This comes after the University announced a $33 million budget deficit due primarily to lower enrollment numbers in August 2023. The University announced an additional $1.3 million deficit in January 2024.
Fiscal year 2025 will begin on July 1, the same day that the University’s presidency turns over to Jonathan Alger.
Faculty and staff financial packages comprise 44 percent of the FY25 budget and student financial aid will make up 23 percent of the budget. Additional large expenses include the McDowell Hall renovation, the Terrace Dining Room renovation and the construction of the Student Thriving Complex.
Adams reports $25 million in operating budget savings from the current year, due to “compensation savings for vacant positions; contractual expense reductions; savings in supplies, travel, and food expenses; and lowering other operating costs.”
Additionally, the Board decided to pause their usual contributions to University reserves, which traditionally makes up 1 percent of the budget, according to Adams. They intend to resume this funding in future years.
The University will host forums to discuss the budget on Zoom April 24 at 11 a.m. and in person April 25 at 4 p.m. The full budget report will be published by the budget office in the coming weeks, according to Adams.
This article was edited by Abigail Hatting, Tyler Davis and Abigail Turner. Copy editing done by Sydney Kornmeyer and Charlie Mennuti.
