From: Michael S. Keeney, Ph.D., Chief Financial and Operating Officer
Date: August 21, 2025
Subject: FY26 Staff Development Allocations, FY27 Budget Planning, and Hiring Guidance
Introduction
As we continue to navigate a challenging fiscal environment, I want to provide updates on staff development funds, FY27 budget planning expectations, and our ongoing hiring guidance. While our resources remain constrained, our collective focus on thoughtful planning and disciplined spending will ensure that USG continues to deliver on its mission and support our community.
FY26 Staff Development Funding
I am pleased to share that we have been able to identify very limited funding for staff development for FY26.
The process of how staff development is funded is changing, and will now include the Office of Strategic Human Resources. Rather than funds being distributed across individual units’ budgets, staff development funds will be held centrally and administered by the Office of Strategic Human Resources. This centralized funding approach is a standard business practice used in many organizations.
Department chiefs will make determinations on how amounts are further allocated within the department based on needs and priorities. Please continue to follow established approval processes for travel etc. before spending money on training, conferences, etc. Allocation amounts and additional procedural information will be shared directly with unit chiefs (e.g., Chief Strategy Officer) by September 1, 2025.
FY27 Operating Budget Planning
As we begin FY27 budget planning this fall, we need your participation and will be asking each department for input. This exercise will be based on zero-base budget principles, requiring line-item detail of all proposed expenditures. The budget office will develop scenarios that reflect different levels of spending reductions.
Departments should approach this process with a focus on efficiency, impact, and alignment with USG’s mission and priorities. Reduction targets for the planning exercise, sample templates, and other guidance will be provided in early October. We will be available to answer questions as you work through this exercise; this can be integrated into your existing budget review meetings with Nhi Eklund, Sr. Budget Analyst.
The exercise will be due no later than December 12, 2025.
Hiring Guidance
As part of our ongoing efforts to manage the budget, the pause on all regular FTE hiring is extended to February 1, 2026.
If we receive more favorable information about the state budget outlook, we will revisit and potentially adjust this guidance.
Continued Fiscal Prudence
Your continued vigilance in monitoring spending—especially for travel, discretionary purchases, and non-essential activities—remains essential to maintaining operational stability.
I want to thank each of you for your careful stewardship of USG’s resources and your unwavering dedication to our mission. Your ability to adapt, innovate, and make sound decisions ensures that we remain strong—both now and into the future. Together, we will continue to deliver programs, services, and opportunities that our students and partners count on.