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University Budget

University of the Pacific's budget is intended to fulfill the University's mission of providing a superior, student-centered learning experience integrating liberal arts and professional education and preparing individuals for lifetime achievement and responsible leadership in their communities. This page offers resources for understanding the University budget and the process by which it is set each year. Please send feedback or questions to IPC@pacific.edu.

Details on the university budgets and reports on the university's financial health since fiscal year 2016 are available to the university community at the Budget Sharepoint Site.

Regents approve Pacific's fiscal year 2019 university budget

The Board of Regents approved the university's operating budget for the fiscal year 2019 (July 2018-June 2019) at its April 2018 meeting. The $263M budget (net of auxiliary revenues), developed by the Institutional Priorities Committee (IPC), assumes a projected total revenue of $267M. The majority (89 percent in FY 2017) of the university's revenue is net tuition, which is projected to increase slightly for 2018-19.

FY19 Budget Highlights: (full details on Budget SharePoint site)

  • Like many other colleges and universities across the country, Pacific has experienced unpredictable enrollments and higher discount rates, which have resulted in flattening revenues the past few years. This, coupled with rising costs associated with employee compensation (wages and benefits), has caused our expenses to exceed our income.
  • To cover the FY19 shortfall, the Board approved a one-time allocation from the accumulated, unused Strategic Investment Fund reserve with a commitment to repay the amount.
  • The major expenses that are increasing and required additional funding in the FY19 budget include:
    • Increased benefit costs.
    • Wage increases associated with annual salary adjustments and the increase in minimum wage.
    • Faculty and staff promotion pool to pay for promotions that occur during the fiscal year.
    • A one-time payment of 2 percent of wages to faculty and staff who earn a full-time equivalency of $80,000 or less annually.

FY20 Budget Reductions: (full details on Budget Adjustments SharePoint site)

  • Pacific must reduce expenditures by 8.45 percent (after budget exclusions) for FY20 (which begins July 1, 2019) and reallocate funds to:
    • Move employee pay structures to the market midpoint and provide a merit pool.
    • Create a healthy operating margin of 4.6 percent.
  • The actual budget reduction targets were finalized in August 2018 using revised enrollment and revenue projections for FY19.

Financial Health

  • Overall, Pacific is financially strong:
    • We have a strong endowment and modest debt.
    • Our reserves are solid according to national standards.
    • Moody's Investors Services has given Pacific a strong A2 credit rating. 

Strategic Investment Fund (more information)

University of the Pacific has established a Strategic Investment Fund (SIF) to allow us to invest in critical strategic efforts over the next few years.  The SIF will help Pacific change with the times, without relying on steep tuition increases.  The fund will be used for projects or initiatives that will lead to the accomplishment of Pacific 2020's four strategies: building our academic strength and reputation, pursuing new students in our three cities, preparing our students for success, and developing organizational capacity.  Once accomplished, these strategies will enable the University to fulfill its 2020 vision of a transformative educational experience for all students.

Audited Financial Statements (more information)

This page lists the latest University audited financial statements, as filed each year with the IRS. This is a complete accounting of all spending at the University. As with all nonprofit universities, Pacific's latest posted financial statements are for the fiscal year 2017.

Institutional Priorities Committee (IPC) (more information)

The Institutional Priorities Committee is made up of faculty, University administrators, staff and students who study the budget each year and make recommendations to the President for changes to the budget.