Florida State University’s Board of Trustees has approved a record-breaking $3.22 billion operating budget for the 2026-27 fiscal year – an increase from the $2.97 billion that was approved last year.
And while the overall operating budget figure has gone up, funding for capital projects – including FSU’s future academic health center – decreased a bit and comes as the university’s FSU Health initiative did not receive direct funding from the legislature in next year’s proposed state budget.
At the same time, the budget does not yet reflect new state funding for the 2026-27 fiscal year as Florida Gov. Ron DeSantis has yet to decide on line item vetoes for the spending plan that was approved by lawmakers last month.
However, this year’s capital project funds at FSU also include over $100 million for the northwest campus project for new housing, dining and parking – the most expensive initiative in the spending category.
“It was a tremendous year for the university in light of the state’s economic conditions and the funds that they had to invest in higher education,” FSU Senior Vice President for Finance and Administration Kyle Clark told trustees during a June 18 meeting, where the board approved the new budget. While board members held the meeting virtually, Clark and other university administrators and staff members tuned in from the Turnbull Center.
The $3.22 billion operating spending amount − which includes over a billion dollars for wages and benefits − is a 4.5% increase from last year’s amended $3.08 billion budget for 2025-26, which came after a $2.97 billion budget was initially approved by the board before the amendment was made.
“This year’s budget positions Florida State University to move strategic priorities forward and build on our momentum as one of the top public universities in the nation,” FSU President Richard McCullough said in a prepared statement. “It will expand opportunities for students, strengthen our ability to attract and support exceptional faculty and staff, and deepen our impact across Florida and beyond.”
“We appreciate the continued confidence of the Florida Legislature and Gov. Ron DeSantis in FSU’s ability to deliver meaningful results for the people of Florida.”
FSU capital projects will cost over $450 billion in ‘dynamic’ budget
The budget includes $454.64 million for capital projects compared to $485.6 million last year, which is a 6.5% decrease. One of the initiatives being funded in the category is the future FSU academic health center in Tallahassee, which will get $55 million, compared to $107.6 million in the 2025-26 budget. FSU officials said the decrease is because crews are set to complete construction work on the FSU Health Research Center, which is rising next to the existing TMH hospital.
While direct funding from the state’s proposed 2026-27 legislative budget isn’t going toward FSU Health – which has the goal of transforming the quality of healthcare in Florida’s most underserved regions – lawmakers will allow the university to use existing money to pay for FSU Health plans, including the acquisition of Tallahassee Memorial Healthcare.
FSU acquired ownership of TMH’s campus from the city of Tallahassee in a controversial process after agreeing to pay $3.6 million per year for 30 years.
Funding for FSU Health is not a single line item in the university’s operating budget, Clark explained. Instead, it is distributed across multiple areas with several research initiatives – such as the Florida Institute for Pediatric Rare Diseases and Sunshine Genetics – supported through the budget.
In addition, although TMH is on its way to being a part of FSU, Clark says future budget decisions for the facility won’t be made until the hospital’s governing board establishes strategic priorities to ensure investments are targeted and responsive to the region’s healthcare needs.
Regarding education and general funds for tuition and fees in the new budget, they come out to nearly $280 million as tuition costs for in-state students remain the same for over a decade. “There’s no change to in-state undergraduate and graduate tuition for the 13th year, which is really remarkable,” Clark told the board.
At the same time, a 15% increase in out-of-state tuition fees for non-resident undergraduate, graduate and law school students was approved last year for this fall at FSU and other public universities across the state as a directive from the Florida Board of Governors.
Wages and benefits are listed as the top spending category in the new FSU operating budget at $1.16 billion, but pay raises are pending as the collective bargaining process between the university and unions is ongoing.
“We say this every year, but it’s a tremendous undertaking,” FSU trustee Jorge Gonzalez said during the Thursday meeting, referring to the operational spending plan. “It’s a very complicated budget, and it’s very dynamic.”
Florida A&M University’s board also recently approved a 2026-27 operating budget during a June 11 meeting, which came out to $451.1 million for the fiscal year. The total amount set aside for FAMU capital projects was not specified.
Here are all of FSU’s 2026-27 capital projects, with dollar amounts 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 record $3.22 billion operating budget for 2026-27
Reporting by Tarah Jean, Tallahassee Democrat / Tallahassee Democrat
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By Tarah Jean, Tallahassee Democrat | USA TODAY Network
