Florida State University’s Board of Trustees has approved a $2.97 billion operating budget for the 2025-26 fiscal year – a slight drop from the record-breaking figure that was passed last year.
Trustees met virtually June 12 to vote on the new budget, which is a 1% decrease from the standout $3 billion budget was approved for 2024-25. The drop comes after the university saw a 14.3% increase from a $2.62 billion budget the year prior.
The $2.97 billion budget does not yet reflect new state funding for the 2025-26 fiscal year as legislators are still working to finalize the state’s spending plan, which Florida Gov. Ron DeSantis must sign for related amendments to be made.
“(The budget) demonstrates FSU’s commitment to retain outstanding faculty, staff and graduate students, invest in student financial aid packages, and prioritize research activity amid continuing developments in the federal funding model,” the university said in a statement. “The expansion of FSU Health also remains a focus with the goal of enhancing health outcomes in North Florida and beyond.”
The operating budget includes $485.6 million for capital projects – compared to $519 million last year – and consists of allocations for the College of Business’ Legacy Hall slated to be complete this summer, the new Football Operations Facility, Doak Campbell Stadium and FSU’s future Academic Health Center, which is expected to open in late 2026.
While the FSU Academic Health Center initiative in Tallahassee has a total fixed capital outlay budget of $137.5 million, a projected $107.6 million is included in the 2025-26 budget for construction, coming out as the university’s priciest project for this year.
In partnership with Tallahassee Memorial HealthCare, FSU broke ground on the future 130,000-square-feet center in September on Surgeons Drive just north of Tallahassee State College’s Ghazvini Center for Healthcare Education. This also places the new structure off an often-busy Centerville Road, which has drawn complaints from residents in the neighborhoods nearby.
The continued efforts of bringing the academic health center to completion also come during the possible fusing of TMH into FSU – a conversation that has been in the works for years and that has captivated the attention of many local leaders and community members in recent weeks.
Regarding funding allocations for research in the approved budget, the total revenue from federal grants in the university’s restricted fund is $250 million, which is expected to be a $34.6 million decrease compared to last year amid federal funding cuts that have hit home for FSU.
The university has lost over $53 million in Department of Government Efficiency (DOGE) cuts, with 54 federal grants and contracts canceled as of late May. While FSU has submitted appeal requests in efforts of restoring the funds, a question about whether any positions will be cut because of the drop in grant funding is pending, according to a university spokesperson.
As education and general funds for tuition and fees in the new budget come out to $253.7 million, the university has not raised its tuition costs for students in the past 12 years. “We’re so fortunate in this state that we have both the governor and the legislature to help with affordable education for our students,” FSU trustee Jim Henderson said during the board’s June 12 meeting.
In addition, wages and benefits is listed as the top spending category in the new budget at $1.3 billion. At the same time, pay raises are pending as the university is working with its collective bargaining units to negotiate salaries following the legislative session.
Here are all of the university’s 2025-26 capital projects, with allocations for each:
Tarah Jean is the higher education reporter for the Tallahassee Democrat, a member of the USA TODAY Network – Florida. She can be reached at tjean@tallahassee.com. Follow her on X: @tarahjean_.
This article originally appeared on Tallahassee Democrat: FSU board OKs $2.97B operating budget, a downtick from last year’s record-breaking figure
Reporting by Tarah Jean, Tallahassee Democrat / Tallahassee Democrat
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