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A Message from President Wagner Concerning the Governor's Budget Holdback Announcement

August 28, 2025

ÃÛÌÒÊÓÆµ entered FY2026 with a balanced budget, and each year brings new opportunities and challenges. On August 15, the Office of the Governor announced an executive order requiring a 3% budget holdback for FY2026, which equates to $3.1 million of appropriated expenditure reductions. I am working closely with University leadership to create a plan that meets the requirements of the holdback while minimizing the impact on the University and sustaining growth and forward momentum.

It’s anticipated that we will meet the 3% holdback by coupling increased scrutiny for Opportunity Aligned Resourcing personnel requests with shared responsibility for discretionary expenditure reductions in operational budgets.

I am committed to providing transparency as we move through the planning process, and details will be shared as they are developed.

We hope to lean into OAR to navigate this immediate challenge while we continue to prioritize a plan for long-term financial sustainability. Our ISU roots remain strong, and I have faith in the Budget Advisory Group and the University community to work together in tackling the headwinds we face.


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