HUNTINGTON — At Wednesday’s Board of Governors meeting, Marshall University President Brad Smith discussed ways the school is preparing for potential losses in federal and state funding.
“At the federal level, we’ve been navigating an onslaught of executive orders, DOGE implications and budgetary cuts, and these actions have impacted Marshall in a variety of ways,†Smith told the board.
According to Smith, not only is the university facing the potential loss of NIH funding for health research indirect cost recovery, which he now estimates could be as much as $1.8 million, but Marshall could also stand to lose another $44 million in congressionally directed spending if it’s not budgeted for.
“We work with our senators and congressmen and women, and we get things in place that will support Marshall programs, whether it’s aviation, health care, cybersecurity, and those are typically congressional grants that come to the university,†Smith told HD Media following Wednesday’s meeting.
How the budget will be affected
“Because it’s a continuing resolution now, there are ... no congressionally directed spending that’s included in that. So money we would have thought was coming in to the tune of roughly $44 million is now indefinitely on hold.â€
Smith was referring to the continuing resolution signed by President Donald Trump in March that would maintain funding for the government through the fiscal year.
At the state level, Smith said the university has seen three versions of a budget including varied amounts for Marshall, with one cutting the university by $800,000, another that maintains current funding and one that increases it. He said he won’t know which one was chosen until Saturday.
As a preemptive approach, Smith said the university is cutting 4% of its operating budget. But Chief Budget Officer Matt Tidd said these cuts would have no direct impact on students.
“All of that basically leads us to, ‘Look, we need to be ready for a worst-case scenario. So let’s just make sure we tighten our belt a little bit while we continue to lean into enrollment,’†Smith said.
In discussing the state Legislature, Smith also pointed to HB 3279, which would make three members of its board — the faculty representative, the student body representative and an employee — non-voting members.
“We have made our position known on this: We think shared governance is what makes a university strong,†Smith said. “Regardless of how that bill comes out, we will continue to embrace all voices and make sure that we continue to navigate as a university together, but suffice it to say, we’re working very hard every single day to navigate through what’s happening at a federal and state level.â€
Tidd also pointed out a recent increase in PEIA premiums, although he said the state has provided no employee raises to compensate.
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The board, however, approved a budget for Fiscal Year 2026 on Wednesday that included market equity adjustments of $369,000 for 156 employees to bring them up to the minimum of the new salary scale.
“We’re committed to getting all of our employees by 2027 up to 80% of the midpoint of their pay grade at a minimum,†Smith said.
The university would also draw down $21.5 million in investments, according to the budget.
“We’re going to draw down some of our strategic reserves — which the Board of Governors has approved in the budget — that will allow us to get through this 18-month period as we start to turn things back up,†Smith said, adding the university is still “healthy.â€
Tidd said, overall, the university is still on track to break even on its deficit in Fiscal Year 2027, which he said is expected to be $12.4 million in the beginning of FY26. He said the university would be “back in the black†beginning in fiscal years 2028 and 2029.
Tuition, fee increases coming
The new budget also included an approved 2.5% tuition increase for resident students while maintaining current costs for non-resident, international and metro tuition students.
For FY26, undergraduate and graduate resident students would see an annual increase in tuition of $226 and $236, respectively.
The board also approved several fee increases. The capital fee would increase $24 per year, and the Marshall Recreation Center fee would increase $12 per year. An auxiliary fee for students would also increase $12 per year.
The average room rate would be increased by 2.6%, and any meal plan increases would be limited to 4%.
Tidd said tuition is usually expected to increase every year to support growing costs of inflation. But while inflation is up 3% to 3.5% this year, he said, the university has increased its tuition below that.
He said, although Marshall continues to make cost breaks for students like the Marshall for All program and a recent announcement which cuts tuition for resident students with a family income under $65,000, the university’s foundation and alumni and donor base continues to provide support.
He said reversing the school’s 13-year trend of declining enrollment has also helped with Marshall’s budget, and revenues are growing outside of tuition in terms of grants and contracts, auxiliary revenue and keeping expenses down.
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