Temple will reinstate a hiring review process for all staff positions, halt nonessential capital projects and scrutinize department spending in response to concerns surrounding the university’s budget deficit, wrote President John Fry in a statement to all faculty and staff Friday.
“The overall impact of federal funding changes, tariffs and other actions is still unknown, and therefore we must take an even more cautious approach moving forward,” Fry wrote.
As part of the cost-control efforts, departments will undergo spending evaluations, including restrictions on discretionary purchases, limits on nonessential staff travel and collaboration with vendors to reduce costs. Departments may request exemptions from the hiring review process.
Fry cited growing concern due to federal funding changes and recent tariffs, including evolving policy shifts from President Donald Trump, who on April 2 imposed a minimum 10% tariff on all imports and steeper, individualized tariffs on 86 countries. Those country-specific tariffs were paused on April 9 and standardized at 10% while tariffs on Chinese imports were increased to 125%.
Temple began the year with a projected $85 million deficit, which has been partially offset through measures like eliminating more than 150 administrative vacancies, using reserve funds and implementing a hiring review in Fall 2022. However, new economic developments have heightened concern, Fry wrote.
Despite financial strain, Fry expressed optimism following a recent enrollment increase, emphasizing that tuition and the commonwealth appropriation account for 84% of the university’s operating revenue.
To generate a future profit margin, Fry wrote about other profit-generating initiatives including the launch of new online degree programs, a fundraising campaign and long-term deficit reduction strategies.
“We understand that uncertainty is difficult and challenging,” Fry wrote. “Please know that we remain committed to consistent communication as we guide Temple through this complex landscape.”
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