A comprehensive budget report from UTD’s Student Government directly links nationwide declines in international graduate students to the 5.3% budget cuts that swept campus this year and claimed sports teams and vacant job posts.
The “Budget Breakdown” report, finalized this month, is the product of a student taskforce that obtained data and context directly from the Office of Budget and Finance. It confirms that the primary driver of the fiscal crisis was a “lower than expected international graduate student enrollment,” a trend exacerbated by “recent hostility towards, and uncertainty surrounding, their continued education in the United States.”
For a university where international students make up a significant portion of the student body, this shortfall created a multimillion-dollar hole. A mandated 5.3% cut to all academic and administrative units during the 2025-2026 academic year was the result.
The primary driver of the fiscal crisis was a “lower than expected international graduate student enrollment,” a trend exacerbated by “recent hostility towards, and uncertainty surrounding, their continued education in the United States.”
According to the university’s budget office, its financial strategy believes the post-pandemic spike in enrollment is temporary. As enrollment numbers normalize, impacts on revenue are expected.
“Cash reserves were positioned to help bridge that transition,” Orkun Toros, vice president for budget and finance, told The Retrograde.
To meet the 5.3% reduction target, deans and vice presidents were given flexibility to propose unit-level plans unique to each department. Toros said that each unit was asked to start slashing costs by first focusing on non-personnel savings, timing adjustments and vacant positions, while limiting the impacts to filled positions and active programs unless there was a clear need “with an emphasis on protecting academic delivery and student services.”
The visible wounds from budget slashes
The report details how deans and vice presidents chose to meet their new targets. The most public cost-cutting measure was the elimination of UTD’s track and field and cross country programs last fall. Less visible was the deactivation of roughly 90 vacant job openings across campus.
Future growth has also been curtailed. Major construction projects not yet underway — including Athenaeum Phase 3 and a new campus power plant deemed essential for expansion — are delayed until further notice. A separate proposed housing facility north of Vega Hall was shelved entirely after revised cost estimates came in millions over budget. Toros said these projects will move forward if sustainable funding sources are acquired.
Despite these cuts, the university is still operating at a deficit, expecting shortfalls for the current and next fiscal years. The report said that to bridge the gap, administrators plan to use a portion of the university’s substantial cash reserves.
“The Office of Budget and Finance … does not want to implement additional cuts that would be disruptive to the university environment,” the report states. “They hope to maintain a balance of austerity in order to allow the school to operate with a sense of normalcy.”
Despite these cuts, the university is still operating at a deficit, expecting shortfalls for the current and next fiscal years.
Toros defined “disruptive” reductions as those that immediately reduce course availability or required student services, delay student progress, degrade academic support, or create compliance or safety risks. He emphasized that using the cash reserves is evaluated against long-term sustainability, and that if drawing cash “[weakens UTD’s] financial resiliency,” different, longer-term solutions will be explored.
As of fall 2025, that emergency reserve fund holds approximately 14 months of operating cash, exceeding the university’s own target of having 10-12 months of operating costs in its reserve.
Auxiliary funding: housing, parking, UREC
The report also breaks down the finances of major auxiliary services like University Housing and University Recreation that are expected to largely pay for themselves. The analysis reveals a stark imbalance:
- University Housing is a major profit center, generating $46.4 million in revenue against $17 million in expenses. After debt and other charges, it presents a $12.7 million surplus.
- Parking & Transportation operates at a smaller $964,000 surplus.
- UREC, however, runs a deep $4.94 million deficit. With only $100,000 in generated income against $2.57 million in expenses, it requires a significant subsidy, which is ultimately drawn from other university revenue sources including tuition and state funds.
When asked about the long-term plan for UREC’s finances, Toros challenged the report’s characterization of a “deficit,” noting that “UREC’s budget is reviewed and approved through the Student Fee Advisory Committee and has historically remained within its approved expense budget.” The UREC budget is a combination of funding pulled from student fees and income from the services UREC provides.
Where student fees go
The taskforce also dissected the mandatory fees attached to every student’s tuition bill, which total $118.4 million for this academic year.
The largest single mandatory fee is the Green Fee, which accounts for $29.9 million, or 25.3% of all mandatory fee revenue. It is followed by the $15.3 million Advising Fee and the $14.7 million Infrastructure Fee. Other large fee categories include the Student Services Fee and the Student Union Fee. Student Government Vice President David Baker said that Student Affairs staff flagged the Green Fee figure for them since it exceeded the tens of thousands the fee was expected to raise by multiple orders of magnitude. The $5 fee currently only applies to freshmen and upperclassman with a variable tuition plan. Baker said SG is working with Toros to understand this figure.
These fees, combined with net tuition, form the lifeblood of the university. Student tuition and fees constitute the largest single revenue stream for UTD, providing $339.5 million, or 58%, of all operating revenue.
A Call for Transparency and a Path Forward
The report concludes with a pointed recommendation for the administration: involve students before finalizing major decisions.
“We ask that in the future, when big decisions like these are in the discussion, that students are informed ahead of time and given an avenue to submit feedback or have their voice heard before a decision of that magnitude gets finalized,” the student authors wrote.
They advocate for the establishment of an annual Budget Breakdown project as a watchdog and transparency tool for the student body, writing that consistent oversight “helps prevent misinformation surrounding university budgets.”
We ask that in the future, when big decisions like these are in the discussion, that students are informed ahead of time and given an avenue to submit feedback or have their voice heard before a decision of that magnitude gets finalized.
— Student authors of “Budget Breakdown” report
Toros called the taskforce model “a productive way to improve shared understanding and transparency.” He said the university “will continue to engage students through appropriate forums and committees, and incorporate input where it is actionable, while ensuring decisions reflect campuswide needs and established governance and fiduciary responsibilities.”
For lessening UTD’s heavy reliance on international students’ tuition, Toros outlined several institution-wide initiatives for the coming three to five years: growing domestic graduate and professional programs; diversifying international recruitment; expanding federally and industry-funded research; increasing philanthropic and corporate partnerships; and scaling non-credit and executive education offerings.
The report provides a concrete financial backdrop to ongoing campus debates over UTD’s priorities, illustrating the trade-offs between new construction, student support services and the basic cost of running a growing public university.