Originally published on August 22, 2025, on IdahoEdNews.org
BOISE, ID Boise State University is preparing for the prospect of additional budget cuts in the upcoming year as it copes with a $4 million loss this year.
Interim Chief Financial Officer Stacy Pearson informed the campus community in a message on Friday that the Boise State budget office will begin modeling reductions of 2, 4, and 6 percent in the 2027 budget.
A 2% cut is equivalent to $2.7 million based on Boise State’s general fund budget for this year. A 4% cut is equivalent to $5.4 million, and a 6% cut is around $8.1 million.
Given that Idaho is experiencing its worst budget crisis in five years, the 2027 budget cut options represent a novel development.
The Division of Financial Management under Governor Brad Little instructed state agencies on May 29 to prepare for potential budget holdbacks during midstream spending cuts for the fiscal year 2025–2026, which started on July 1. Agencies were instructed in the memo to internally plan for 2%, 4%, and 6% holdbacks.
A week earlier, Little imposed a 3% general fund budget cut throughout the state government, which caused those setbacks. Public schools were not included. The 3% hit extended to higher education and the rest of the state government. Idaho implemented midyear budget cuts for the first time since 2020, when the COVID-19 epidemic was at its worst.
However, Boise State is getting ready for the potential that this year’s cuts won’t be an isolated incident.
Pearson stated, “We have been asked to plan additional reductions for the (2022–27) budget year, even though this 3% reduction is announced as a one-time reduction.”
The request’s origin was a little unclear on Friday.
According to Boise State spokeswoman Stephany Galbreaith, the State Board of Education requested that the university create budget-cutting measures. The request was not made by the State Board, according to spokeswoman Marissa Morrison on Friday. However, Morrison stated in a subsequent email that the board has instructed colleges and universities to adhere to the DFM’s standards in order to ensure that their budgets are prepared correctly.
The May 29 DFM memo directs agencies to submit maintenance budget requests for the upcoming year, with no new programs or spending increases, and states that the $450 million in tax cuts and tax credits passed in 2025 will reduce state income for 2026–2027. According to the memo, we are requesting that all state agencies internally develop 2%, 4%, and 6% budget holdback scenarios to put in place as we continue to monitor national economic trends while keeping an eye on income predictions for 2025–2026 and 2026–2027.
As of as now, DFM has not requested that state agencies submit proposals for potential budget cuts for 2026–2027.
The agency budget requests for the following year are due at the end of this month. Administrator Lori Wolff told Idaho Education News Friday that DFM will not request projections for potential budget reduction in 2026–2027 until at least October. Before requesting scenarios for budget cuts, DFM needs to see tax collections in August and September.
The state faces a possible $79.9 million shortfall this year as a result of weak tax collections and this year’s flurry of tax cuts and tax rebates.
Small setbacks are intended to partially eliminate this year’s deficit. State spending will be reduced by $86 million. A total of $13.3 million will be cut from higher education, including $4 million at Boise State.
This $4 million will be used by Boise State for savings, including job openings.
Pearson added that Boise State will make prudent spending decisions for the time being.
Despite these budgetary difficulties, the university is nevertheless financially stable, according to Pearson. However, until we better understand the effects of these state budget cutbacks in conjunction with the increase in enrollment income, we will not be able to fund new programs.
