Dear faculty and staff members,
Last week, we wrapped up an eventful academic year topped off with the graduation of more than 10,000 Spartans into the world to make their mark. This was a true team effort, with every one of you contributing to make it possible. Thank you.
I’m proud of what we’ve accomplished together over my first full academic year at Michigan State. We have, for example, launched several initiatives to make MSU an even greater talent activator, including forming the Green and White Council to help us better prepare our students to meet workforce needs. We continue to make Michigan State more accessible and welcoming, from strengthening our partnership with Lansing Community College to working to create our First-Gen Center. We have also bolstered our commitment to outreach, deepening our engagement in the communities we serve.
And yet, it has also been a challenging year, especially these last four months, as we navigated federal policies and directives that undercut our ability to advance our land-grant mission and continue essential research projects that make life better. I want to acknowledge the continued dedication, resilience and excellence you all bring to your work every day. Your contributions drive our mission forward — in classrooms, labs and student support offices; in our administrative units in every building; and by those who keep our campus safe, clean and beautiful.
Unfortunately, federal changes are compounding our existing financial challenges, including our ongoing efforts to balance the university’s budget. Over the past few years, we — like other peer universities, companies and organizations — have faced some difficult financial headwinds, with rising health care costs being of particular concern. As I shared at the beginning of my tenure, I have made it a top priority to comprehensively assess our challenges and ensure our financial health. I have looked closely at our budget model and the state’s appropriations formula and have examined stress points, available reserves and forecasted operating budget trends.
With federal impacts exacerbating our financial situation, and as shared this spring, I have also worked with university leaders to examine our finances through a three-horizon timeframe, looking for potential short-, medium- and long-term efficiencies and savings. For the first horizon, we have carefully reviewed college and unit budgets, vacant positions, nonpersonnel expenses and enrollment trends/projections. For the second horizon, we have been evaluating our options for setting our annual budget this June. And for the third horizon, we have considered larger, longer-term savings.
After careful deliberation, we have reached the difficult conclusion that we must adjust our financial path. In the coming days, Senior Vice President and Chief Financial Officer Lisa Frace and her team will share with unit leaders needed action steps and appropriate measures to put the university back on a healthy financial track. The next few months of financial planning will be demanding and difficult for some in our community, and we will need to make hard decisions that will impact people we care about. Our goal has been — and will be — to do our best to support our people while making the necessary strategic decisions for the long-term success of Michigan State University.
I know this letter may raise questions and concerns. Please know that you will hear more from your college and unit leaders in the weeks ahead as we work to provide timely information to our university community and forge a stronger MSU.
Sincerely,
Kevin M. Guskiewicz, Ph.D.
President
Professor, Department of Kinesiology