By Hannah Webb | News Editor
The Baylor Board of Regents approved a $982.2 million operating budget for 2026-27 and a new master’s degree in artificial intelligence during its regular May meeting Thursday, as university leaders celebrated what is expected to be the second-best fundraising year in Baylor history.
The budget follows a campus-wide assessment process that identified $35 million in reductions to be implemented over two years.
“This budget is responsible, strategic and in line with Baylor in Deeds,” said outgoing Board Chair Bill Mearse, who completed his third year leading the board. “Many sectors, including higher education, have been greatly impacted by recent financial pressures, and we must be good stewards of the resources entrusted to us by students and their families, as well as alumni and friends of Baylor.”
President Linda Livingstone said the budget process required input from every corner of the university and involved working with departmental heads and deans to be “thoughtful” about what to cut.
“We really encouraged people as they went through that process to think about things that are going to have the least impact on the student experience, on the quality of the educational experience,” Livingstone said. “And to look at areas where maybe we’ve just been doing something a certain way for a long time and we can’t even really explain why we’re still doing that.”
Livingstone said the focus throughout was protecting what makes Baylor distinctive.
“It’s always top of mind — how do we make sure we ensure that we maintain the uniqueness of the Baylor experience for our students and the quality of that experience, both the cocurricular experience and the academic experience,” Livingstone said.
Mearse noted the university is also looking beyond cuts to identify new revenue streams.
“We also appreciate how the President’s Council has focused on decreasing our campus operational costs while identifying new revenue opportunities as well,” Mearse said.
Alongside the budget, regents approved a new Master of Science in Artificial Intelligence Plus — a graduate program housed in the School of Engineering and Computer Science that combines core AI skills with specialized domain knowledge.
The program will initially focus on cybersecurity and is designed to expand into additional fields as it matures.
Mearse said the degree directly addresses a documented workforce shortage.
“The demand for AI core skills and ethics is growing exponentially,” he said. “Employment in the field is expected to increase by as much as 30%.”
He added that the program’s emphasis on applying AI within specific disciplines — not just learning it in the abstract — would set Baylor graduates apart.
“One of the things that this AI Plus degree does is it also focuses on AI, not just learning AI, but applying it in specific areas, initially cybersecurity,” Mearse said. “I think that will differentiate that and aligns with our overall Christian mission.”
When asked how the new degree relates to AI use across campus, Livingstone acknowledged that integration has been uneven. The business school has embedded AI in every course, while some departments have entirely restricted its academic use. Livingstone said the university has taken a decentralized approach but signaled that it will likely evolve.
“I think we’re going to have to do a lot more education with faculty to help them feel comfortable with AI in a way that they know how to use it to help their students understand the implications for what they’re going to do in the workplace,” Livingstone said, “while protecting the academic integrity of grading and testing and evaluation.”
Livingstone said the goal is not simply to teach students the latest tools, but something broader.
“Beyond just teaching our students how to use the latest AI tools, it’s really helping students to know how to think and reason and be adaptable and to be critical thinkers about how to use some of these different tools,” she said.
The fiscal picture surrounding the budget came with notable bright spots. Baylor has raised more than $204 million this fiscal year — the second-highest total in university history — anchored by a $30 million naming gift from the Moody Foundation of Galveston for the Moody School of Education. The Extend the Line scholarship initiative, launched in February 2025 with a goal of raising $250 million by 2030, has already secured more than $112 million and established 169 new endowed scholarships.
Baylor’s endowment has also grown substantially, more than doubling from $1.2 billion to beyond $2.5 billion since Livingstone became president in 2017. Over that period, the endowment has distributed more than $700 million for scholarships, professorships, programs and general funding.
“Like every other college and university in the country, Baylor is navigating a host of challenges today,” Livingstone said. “But with the faithful commitment from those who believe in our Christian mission and the foundation outlined in the Baylor in Deeds strategic plan, we are well-positioned to succeed now and in the future.”
