By Christian Wells | Staff Writer
Citing mounting financial pressures across higher education, Baylor will cut $35 million from its operating budget over the next two years, President Linda Livingstone announced, linking the reductions to the university’s long-term strategic plan, Baylor in Deeds, and efforts to slow future tuition increases. The move comes with a 6.5% increase in tuition and a steep drop in faculty retirement contributions.
Livingstone addressed faculty and staff in a campus-wide message detailing the financial review and the adjustments that were made. According to Livingstone, colleges all over the country are having a hard time right now because fewer students are enrolling, prices are going up and new rules are being made.
While noting Baylor’s enrollment remains “healthy” and its financial foundation “sound,” she said the university must respond proactively rather than wait for other things to shape its future.
“Baylor’s commitment to our Christian mission is incredibly strong, our enrollment remains healthy and our financial foundation is sound,” Livingstone said. “But these endemic strengths do not exempt us from the need to be prudent, strategic and proactive.”
The budget cuts followed the university’s careful review of how it spends its money. Livingstone said this review supports one of the four main commitments in Baylor’s long-term strategic plan, Baylor in Deeds.
“Over the past several months, we have been engaged in a comprehensive budget assessment across the entire university,” Livingstone said. “This work reflects one of the four core commitments of our strategic plan, Baylor in Deeds, demonstrating Christian stewardship.”
After completing the review, university leaders identified $35 million in operating cuts designed to make campus operations more efficient and better align spending with the university’s strategic priorities.
“These decisions are aligned with Baylor in Deeds, and for our future success, not just today, but 5, 10 and 25 years into the future,” Livingstone said.
The university said the reductions are aimed at slowing the rate of tuition increases. Livingstone pointed to a recent Board of Regents vote approving a tuition and fee increase averaging $1,978 per student, or 6.5%.
“Without the $35 million in operating reductions over the next two years, Baylor’s tuition and fee increases would have been in excess of 10% annually,” Livingstone said.
The budget planning also includes workforce-related changes. Baylor will maintain a 3% merit pool for faculty and staff in fiscal year 2026 to 2027, but will lower its retirement contribution from 10.8% to 8% effective Aug. 1.
“I recognize this change is significant. And please know this decision was not taken lightly,” she said, adding that even with the adjustment, Baylor’s benefits package remains competitive.
The budget update complements Baylor in Deeds, a strategic plan unveiled in September 2024 that outlines the university’s direction through 2030. Provost Nancy Brickhouse, one of the plan’s co-chairs, said at the time that the plan will “provide the direction for the university” over the next five to six years.
“It’s a very ambitious plan, but it’s the right plan for Baylor at this time,” Brickhouse said when the plan was released.
The plan outlines four central commitments — equipping students to flourish, expanding interdisciplinary research and impact, fostering a vibrant campus community and demonstrating Christian stewardship — that university leaders say guide major decisions about how resources are allocated.
The university said it will continue communicating details and providing resources for faculty and staff as the budget revisions are integrated into the fiscal 2026 to 2027 planning process.
