MILWAUKEE — Marquette University said it plans to cut its annual operating budget by $31 million — or 7% — by 2031. 

Marquette leadership said it plans to reduce its annual operating budget by $11 million — or 2.5% — in FY26.

The leadership team said it plans to make a cumulative budget reduction of $31 million by FY31.

Marquette said it will reinvest 40% of the money saved back into university priorities laid out in its 2031 strategic plan.

In addition, Marquette said university officials will “consider our program offerings, our physical and organizational structures, and the way we do our work.” Marquette noted that financial challenges led to the budget decrease.

“Although we are in a strong financial position, Marquette — like other universities — is facing increasing economic and demographic pressures. Fewer traditional students are attending college, and those who do attend often need more financial and other support. Marquette relies on enrollment to generate revenue to operate the university — nearly three-quarters of our operating revenue comes from tuition and room and board. The reality is that while tuition sticker prices have risen over the last decade, market-driven increases in financial aid awards to students have resulted in limited growth for overall net tuition revenue relative to rising costs and significant inflation,” university leaders said in a statement released Monday. 

Marquette leadership — including president Michael Lovell, university staff senate chair Calley Hostad and university academic senate chair Chris Stockdale — said the university needs to be “proactive to protect Marquette’s long-term viability.”

The university faculty committee for budgets and financial planning (UFCBFP) said it recommended the issues being addressed now in a “shared governance approach,” as opposed to being forced into a decision later on.

The university said the leadership team asked Jill Guttormson, the dean of the college of nursing, and Ralph Weber, acting general counsel, to help lead the Steering Committee. The committee will include representatives from UFCBFP, staff senate, academic senate and other faculty and staff representatives. The committee will also have an external consultant as an advisor. The Steering Committee will make recommendations to university leadership on next steps of the multi-year plan. 

Read the full statement here.