Dear colleague, 

As we launch our budget planning process for FY 2026, the university leadership team has carefully modeled financial scenarios and discussed flexible strategies to ensure Wayne State remains on solid financial ground. We remain confident in our current financial status and are working to ensure that the university is well prepared for ongoing and potential future changes in federal or state funding. 

Based on these efforts, we have asked deans and division heads to take three prudent steps to maintain our ongoing financial and operational stability, while also providing for future flexibility: 

1. Strategic hiring considerations: Hiring decisions have long-term implications, representing a planned investment of financial and professional support. We must be mindful of the potential budget realities that accompany such employment decisions. Though we have always served as careful stewards of our resources, all hiring requests must be more carefully considered in the current fiscal environment. 

2. Carry forward balance adjustments: At the end of every budget year, unspent general funds are “carried forward” to be redeployed in the next fiscal year. At times of balanced budget, our university typically distributes to each school, college and division a portion of their unspent prior-year balances for use in the current year. While we intend to maintain this practice, to ensure flexibility and stable cash flow, the distribution will be reduced in February. The remaining funds will be held for later distribution when our financial position is more certain, unless it becomes necessary to use balances to resolve budget shortfalls. 

3. Pause on Facility & Administrative (F&A) distributions: As we have previously shared, the federal administration has proposed a cap on Facilities and Administrative (F&A) reimbursements for NIH grants. Our university typically distributes a portion of F&A funds to researchers and academic units according to a set formula. Due to the potentially drastic decrease in reimbursements from NIH, which comprises more than 60% of our funded research, we are temporarily pausing these distributions. Units and investigators may spend existing balances carefully and should work closely with school, college and division leadership to address immediate needs. 

By taking these prudent steps, we will provide the strongest financial grounding to continue delivering on our life-changing mission. Approaching this work in a flexible and measured manner will allow us to continue adjusting as needed going forward. Deans, division heads and their business affairs teams will continue to receive ongoing assistance from, and collaboration with, university finance and leadership teams as we move forward with this process. 

Thank you for your support and continued dedication to each other, our students and our community. 

Sincerely, 

Bethany Gielczyk 
Senior Vice President for Finance and Business Affairs, Chief Financial Officer, Treasurer 

Laurie M. Lauzon Clabo, Ph.D., RN, FAAN 
Provost and Executive Vice President for Academic Affairs 

Bernard J. Costello, M.D., DMD, FACS 
Senior Vice President for Health Affairs 

Ezemenari Obasi, Ph.D. 
Vice President for Research & Innovation