Building on Our Financial Strategy for a Sustainable Future | University of Houston-Clear Lake

December 5, 2024

Dear Faculty and Staff, 

In my recent State of the University address, I shared that our goal is to develop a stable and sustainable financial model for UHCL. The financial challenges we face are not unique, nor is the turmoil created by the disruptions throughout higher education. To achieve this goal requires us to think creatively, plan strategically, and adapt with purpose. It requires us to choose to act rather than be forced to react and to take a critical eye to everything that we do. 

We began this process last year by instituting reductions, a hiring freeze, and the development of the FY25 budget. Of the measures already implemented, I remind everyone that the hiring freeze remains in effect. Moving forward, there will be even greater scrutiny when considering open positions, with a focus on those essential for a unit’s continued operation. This approach ensures that our resources are allocated judiciously, strategically, and are aligned with strategic priorities. 

In addition to the continued hiring freeze, I have asked the vice presidents to work with their divisions to begin identifying immediate operational savings for FY25. To realize these operational savings, I anticipate budget adjustments early in the spring semester once spring 2025 enrollment is finalized. 

Governor Abbott, in his executive order dated November 13, 2024, has prohibited public universities from raising tuition in the next two years. It will help us keep access to UHCL affordable, which is our goal, but it also means that we have to be even more strategic in our fiscal spending. At UHCL, undergraduate and graduate tuition has remained frozen since 2021 and enrollment has declined. We will do our best to make a case to the legislature for increased state investments in higher education during the upcoming session.

Over the next few months, and in support of the budget planning process for FY26, our Executive Leadership Team is charged with identifying and preparing recommendations. They will work within their respective areas to conduct a thorough analysis of all programs, operations, and positions to engage in the challenging yet necessary work to help shape UHCL’s financial future. To guide them in this effort, we will adhere to a set of guiding principles:

Goal

• Develop a sustainable financial model to create a balanced budget that is not dependent on fund balance and maintains a reserve of approximately 12 percent.

FY 26 Budget Planning and Reduction Principles

• Align budgetary decisions with the University's mission and strategic plan (student and faculty success, operational excellence, fiscal responsiveness, and elevated university recognition and profile).
• Complement longer-term planning with near-term decisions to maintain a balanced budget.  
• Challenge the status quo and long-held practices that are impediments to success. 
• Make strategic data-informed decisions based on performance measures to maximize current and potential sources of revenue.  
• Emphasize cost savings by pursuing efficiencies in the University’s operations.  
• Continue the ongoing commitment to the employment and retention of high-quality faculty and staff.  
• Make strategic investments to grow new enrollment and increase retention.  
• Leverage and consolidate technology to increase efficiency and productivity. 
• Provide timely communication to the campus.

The University Planning and Budget Committee is the shared governance process through which faculty, staff and students provide advice regarding the University budget. As part of my commitment to transparency and keeping you informed, I will continue to share insights and progress as we move forward in solidifying our fiscal strategy for the FY26 budget cycle.  

Thank you for your continued dedication to UHCL and our shared mission to ensure this university remains a beacon of educational excellence. 

Sincerely,

Richard Walker, Ed.D.
President