Budget Model Transition Update, 5-21-2026

Dear colleagues,

We are writing to share an update on the campus budget model following our April 8 communication announcing plans to transition to a new framework beginning July 1, 2026.

Following recent discussions with campus leaders and affiliate institutions, we have decided to postpone full implementation of the new budget model until July 1, 2027. 

As we shared in April, the new budget model is intended to strengthen long-term sustainability and diversify support for the core infrastructure and services that bolster our research, innovation, education and clinical care missions. We remain confident that the model’s principles are sound and well-suited to support the scale and complexity of our growing academic medical campus into the years and decades ahead.

This extended timeline will allow the campus to continue close analysis of evolving state and federal financial conditions that are shaping both near- and long-term planning. We are seeing some slowing in grant-related ICR (facilities and administration) funding that supports campus operations, and state funding is flat in fiscal year 2026–27.

Over the next year, we will continue reviewing central budgets and campus operations while engaging with schools, units, affiliate partners and our donor community to support planning and implementation. 

What to Expect for Fiscal Year 2026-27

For the coming fiscal year, beginning July 1, 2026, the current budget model will largely remain in place, with the following updates: 

• The current general administrative recharge (GAR) rates on auxiliary expenses will remain unchanged.
• A new 5% GAR assessment on applicable philanthropic gifts and endowment earnings (Fund 34) will take effect Jan. 1, 2027, allowing time for communication with donors and philanthropic partners while beginning alignment with national practices. 
• The current 10% distribution of research-related indirect cost (F&A) funding to schools and units will remain unchanged.

 

The existing budget model will continue to guide central and school allocations during this transition period. As part of planning for fiscal year 2026-27 and beyond, we will continue to identify operational efficiencies and budget adjustments to help position CU Anschutz for a strong financial future.

We appreciate the thoughtful feedback and engagement we have received throughout this process and thank you for your continued partnership as we prepare CU Anschutz for its next chapter of growth and long-term sustainability. We remain committed to keeping the campus community informed and will provide updates throughout the transition.

Please do not hesitate to contact Terri Carrothers and Ryan Davis with additional questions.

 

Sincerely,

Don Elliman
Chancellor

Terri Carrothers
Executive Vice Chancellor, Administration and Finance
Chief Financial Officer