PULLMAN, WA – Washington State University, like many public institutions, is preparing for a likely reduction in state funding over the next several years as lawmakers in Olympia face a significant budget shortfall.

The projected gap in the state’s operating budget is estimated at $12–15 billion over the next four years. In response, Governor Bob Ferguson has proposed $4 billion in cuts across state agencies, building on the $3 billion previously identified by former Governor Jay Inslee.

For WSU, the governor’s proposed cut to state funding is 3% — less than the 6% reduction facing most other state agencies. Importantly, the proposal allows WSU to decide where and how to implement those reductions, providing us the flexibility to protect our core priorities.

While no one welcomes cuts, we’re in a stronger position when we have the autonomy to make smart, strategic choices rather than have decisions made for us.

WSU requested $714.5 million for the 2025–27 biennium, including $27.5 million to support employee retention and compensation. Governor Ferguson’s budget would provide $682.6 million, with just over $20 million designated for retention and compensation.

The governor’s current budget proposal also includes one unpaid furlough day per month for state employees (excluding health and safety roles), which — if applied to higher education — could equate to a 4.6% reduction in pay.

Facing challenges, planning for the future

The potential drop in state funding is one of several financial challenges WSU will navigate as the university approaches fiscal year 2026. Throughout the coming weeks, WSU Insider will continue to share updates on these challenges and highlight how we’re preparing to meet them — together, with a clear focus on the future.

Budget complexities: Appropriations vs. provisos

A key consideration in these discussions is how state funds are allocated. Some funds come as general appropriations, which allow us flexibility in how we spend them. Others are provisos, which are tied to specific projects or initiatives — whether we requested them or not.

Since 2017, general appropriations to WSU have grown by 32.8%, while provisos and other restricted funds have increased by 173%. In the current biennium, WSU received $457 million in general funding and $214 million through provisos.

While provisos can support valuable projects, they can also create budget challenges — especially when associated costs, like employee salary increases, exceed the funding provided. It is often assumed that universities will make up the difference by cutting elsewhere or raising tuition. That’s not sustainable — and we’re actively engaging with state leaders to address this.

“We appreciate that the state views WSU as a key partner, but under conditions of fiscal strain, these targeted investments can stress our ability to fund our core academic mission,” said Provost and Executive Vice President Chris Riley-Tillman. “If proviso funding is protected while general funding is cut, deeper reductions may hit our academic units.”

WSU is partnering with lawmakers to explore whether cuts to general funding could be balanced by adjustments to proviso-funded projects.

Priorities and path forward

As we engage in this year’s legislative session, the university is laser-focused on a few key priorities:

• Full funding for cost-of-living adjustments for faculty, professional staff, and union-represented employees.
• Continued support for accreditation of the Elson S. Floyd College of Medicine.
• Sustained investment in the Native American Scholarship Program, which supports more than 140 students.

On the capital side, WSU is seeking funds for:

• Campus infrastructure upgrades across Pullman, Spokane, Vancouver, and Tri-Cities.
• Construction of a new Team Health Education Building in Spokane.
• Demolition and replacement of Heald Hall in Pullman.
• Investments in the university’s minor works fund to preserve core campus operations.

Lawmakers received an updated state tax revenue forecast on March 18, which will inform final budget decisions. The 2025–27 biennial budget is expected to be finalized by April 27.

We will get through this — stronger

“Budget challenges are hard and disturb our sense of balance — but WSU has faced difficult moments before,” said incoming WSU President Elizabeth Cantwell. “We will bring clear priorities, smart planning, and a commitment to our mission, and we will emerge stronger, more focused, and better prepared for the future. I am confident in our ability to adapt to the path ahead — and I’m beyond grateful for the dedication of our faculty, staff, and leadership team as we move forward together.”