A Message from President Philomena Mantella

Colleagues,

Over the past several months, we have all been engaged in important and necessary efforts and discussions about financial stewardship at Grand Valley. As we close out the academic year, I want to thank you all, recognize how much has been accomplished and acknowledge that significant work lies ahead.

This communique is intended to provide an update to everyone, clarify several points that have surfaced in recent discussions, and continue our efforts to engage with transparency. It will also lay out the remainder of the work that will be necessary this summer to be ready for the start of the new fiscal year in July.

I am grateful that our university is on solid footing, allowing us the time and meaningful opportunity for data-informed, thoughtful deliberation and financial stewardship focused on our shared priorities. I am grateful to each of you who have engaged within your division to inform decisions to date and the path ahead.

The Context and Realities We Face

The financial landscape for higher education continues to shift in ways that require proactive, disciplined decision-making. Here are the unfortunate but very real dynamics:

No state budget allocations have been finalized, and all current proposals signal a strong likelihood of reduced support.
Significant decreases in student visa issuances, with some countries experiencing over 90% rejection rates, leading to a global denial rate of 35% -- the highest denial rate in ten years. At GVSU, international student applications are down a whopping 40% for Fall 2026.
Demographic decline in Michigan is leading to more aggressive recruitment from our competitors. For example, the University of Michigan has publicly stated its intention to accept 1,000 more students to mitigate its own funding risks, and Michigan State University's acceptance rate has risen to approximately 85% from roughly 66% a decade ago.
Continued uncertainty in federal funding for key programs like TRIO.

These are not abstract risks or potential conditions—they have real implications for our overall revenue and therefore our expenditure planning for FY 27 and beyond.

It also increases the importance of our summer work of welcoming and orienting incoming students. Thank you to all who participate, including those who maintain our beautiful campus, lead our tours, support the enrollment effort and everything our staff and faculty do to showcase the transformative power of Grand Valley daily.

Progress to Date—and Work Still Ahead

Everyone is doing their part to help strengthen our financial position, even as we face some very difficult realities. Many have stepped forward in this moment to align efforts and reinforce the structures that will carry us forward. And importantly, we have moved through this phase without academic program eliminations—and with very limited impact on positions and people. For those who have been affected, we recognize that even small numbers represent real individuals, colleagues, and contributions that matter deeply to this community. The work to date has resulted in identifying anywhere from .85% in Academic Affairs, up to 5% in a number of the other divisions, for reallocation to priorities, with everyone participating in this effort. I am grateful for this very hard work.

This work matters, but given the ongoing headwinds, it is not complete. Our current environment requires continued attention, continued discipline, and continued collaboration as we move into summer. I hope you will remain connected through your divisional leadership and vice president as we work to maintain the transparency we have emphasized while continuing this work year-round. The Provost has indicated she will continue to draw from budget conversations across the division and with faculty governance this past year. That input will guide us this summer as the Provost's Cabinet works together with the Deans, unit heads, and UAS leadership to develop and assess approaches to the Academic Affairs FY 27, FY 28, and FY 29 budgets.

While the work we are undertaking is necessary and significant, we will also continue to be attentive to the human capacity required to execute it. We have all committed to transparent engagement around budgets and planning and will offer more opportunities to engage in the new academic year.

Level Setting on the Facts

As we do this work together, I believe it is essential that we work from a shared understanding of the facts and approach the work from a place of accuracy. A few items to clarify moving forward:

Academic Affairs and Instruction: We have not diverted resources away from Academic Affairs. Our investment in instruction remains above the median when compared to public universities. Most of the difference in Academic Affairs' total budget over the last several years relates to the establishment of new divisions, such as Student Affairs. I recognize that not everyone agrees with the need for separate divisions but elevating key areas to the senior team table is critical to addressing the complexities of today’s institution.
Academic Programming: We have not closed any academic programs this year, as many universities have done, even as some have faced multi-year enrollment challenges. We remain committed to thoughtful evaluation of programs with shared governance rather than reactive contraction.
Student Success Investments: We have committed $14.1 million toward student success initiatives over the last several years—an intentional and sustained investment in outcomes that matter most.
Financial Aid and Affordability: We continue to invest significantly in student financial aid to reduce the net cost of attendance and expand access.

Moving Forward Together

At its core, this work is about stewardship—not reduction for its own sake. We are holding this university close by making decisions that:

Support our students and their success
Advance our strategic priorities
Sustain and invest in our people
Position Grand Valley for long-term strength and relevance

We will continue to communicate as this process evolves, and we will continue to rely on your partnership in shaping the decisions ahead. I am grateful for the seriousness and care with which so many of you have approached this work.

Thank you for your leadership and your commitment to Grand Valley.

With appreciation,

Philly

Philomena Mantella, PhD
President
Grand Valley State University