President Davidson’s fiscal year 2026 budget charge

Oct. 22, 2024 

It is hard to believe we are entering our fifth budget cycle since the start of the Covid-19 pandemic. Still, it’s evident we’ve made the most of that time when we look at how hard we’ve all worked and how far we’ve come since that disorienting spin.  

We stuck to our priorities, stopped the drop in enrollment and bent the curve by focusing on retention. The retention rate for first-time full-time bachelor’s-seeking students from fall 2022 to fall 2023 was 70%. The previous year, it was only 63%. We proved that when we come together to focus on student outcomes and our CADRE values, we see positive results.  

Our new Economic Impact Report shows that we are a valuable partner to the state, contributing nearly $1 billion annually in economic impact. As Colorado’s only modified-open-access university, MSU Denver is a steppingstone toward the American dream and remains one of the best public investments Colorado can make for its economy, people and future. As always, I will go to the legislature prepared to advocate for our interests.  

State budget forecasts predict a potential shortfall of $900 million. Although we will continue to advocate for our share of state higher-education funding, it is critical that we are making best use of the resources we have. This means we must find efficiencies in how we operate and reallocate resources toward proven programs that drive student success.  

In fiscal 2025-26 (FY26), I’m focused on investing in programs and projects that spin the flywheel until sparks fly! I’ve identified the following spending priorities for FY26 in alignment with the 2030 Strategic Plan.  

1. Student retention and completion. Students, students, students remain my top three priorities – not only because this is our founding mission, but from a budget perspective, MSU Denver succeeds only when our Roadrunners succeed. The state funding formula directly rewards those IHEs with improved completion rates.  I will be looking for a budget that prioritizes data-informed initiatives, in and out of the classroom, that will continue to improve our retention and completion rates.For example, the Open Educational Resources initiative has improved accessibility while saving our students millions of dollars in textbook costs. And the teaching-assistant program is showing a positive impact on retention – particularly among diverse student populations.
   Student success is not optional – it is why we all get out of bed every day!
2. Continuing our commitment to our people. MSU Denver is a people-centric operation. About 70% of our budget is linked to supporting our people – and people are what spins the flywheel. As we invest in student success, we must also recognize its direct connection to employee success. To achieve our goal of becoming a “Best Place to Work” in Colorado, our budget must prioritize initiatives that support employees.I will look for a budget that prioritizes sustaining competitive compensation, invests in professional development and allocates resources toward technology and facilities that enhance our ability to do great work and make our daily work lives better.
3. Removing friction and increasing organizational efficiency. Decreasing state support makes finding efficiencies and allocating resources toward what matters most an absolute imperative. Leaders should examine their budgets carefully during this budget cycle and strive to reallocate resources from less-effective initiatives while fortifying programs in their departments and branches that drive results. Meanwhile, the President’s Flywheel Challenge encourages Roadrunners across the University and at all levels to examine opportunities to remove friction – and potentially earn some extra money. So ask your teams for their great ideas as you craft your budgets this year.
4. Creating a sustainable impact. Being good stewards of state funds and tuition dollars means we must also invest in long-term goals in ways that maximize the impact and sustainability of our mission. MSU Denver must build strategic reserves and allocate funds for the operation and maintenance of new capital assets and to be prepared for unexpected challenges and opportunities. This will ensure modern facilities that support academic innovation, address workforce needs and enhance the student experience, while also strengthening our ability to weather any storms ahead.
5. Expanding pipelines and demonstrating student success. With forecast declines in the numbers of college-age Coloradans and limited state funding, MSU Denver needs to expand its demographic and geographic recruiting efforts.I want to see budget items that elevate opportunities for nondegree credential-seekers, career-changers and individuals looking to upskill, in addition to traditional degree-seeking students. Equally important is demonstrating the value of both a degree and continuing education through postcompletion success. The FY26 budget should prioritize connecting students with pathways to economic and social mobility, showcasing the tangible benefits of higher education.

   Geographically, this means expanding our marketing and recruiting efforts beyond the seven-county Denver metro area, which has become increasingly too expensive for our prospective students. We must reach prospective students where they are and ensure that they know the remarkable opportunity MSU Denver promises.

These priorities help ensure that our limited resources are strategically aligned with our mission and support long-term success by moving the needle on our 2030 Strategic Plan goals. Leaders should map new budget requests and reallocations to these priorities, review past expenditures and include only those in the FY26 budget that drive progress, while phasing out less-effective or temporary initiatives.

I hope this helps in evaluating where and how to use our precious resources as we prepare our Changemakers for their unique futures. Special thanks to the budget team, led by Chief Financial Officer Jim Carpenter and Budget Director Andrew Rauch. Please learn more about the process and contact your UPBAC representative.

Sincerely,

Janine Davidson, Ph.D.
President