The Utah Board of Higher Education approved updates to its operating and capital budget priorities for Utah’s public colleges and universities for the 2026-27 fiscal year at its meeting today to prepare the system’s final submission to the Utah Legislature for the 2026 General Session.

The Board’s adopted budget proposals, developed in partnership with Utah System of Higher Education institutions, reflect responsibilities outlined in Utah Code and Board policy to recommend annual appropriations for systemwide and institutional needs, including employee compensation, mandatory cost increases and other priorities.

The FY 2026-27 request remains flexible and scalable, providing the Governor and Legislature with options in a constrained revenue environment. Today’s updates preserve that framework while incorporating revised Operations & Maintenance (O&M) calculations and updated cost estimates from the Division of Facilities Construction and Management (DFCM).

“These updates ensure our budget recommendations reflect the most accurate information available as we prepare for the 2026 legislative session,” said Danny Ipson, Utah Board of Higher Education member. “They continue to support the Board’s commitment to strengthening Utah’s workforce and helping our colleges and universities serve students effectively and efficiently.”

The Board approved two updates to its FY 2026-27 operating budget priorities:

• O&M adjustments: The Board’s request for new state funding increased by $32,400 one-time and $851,500 ongoing, attributable exclusively to updated O&M funding gaps.
• Recovered institutional funds: Approximately $4.5 million of existing ongoing funding—previously proposed for potential one-time reallocation to support an enterprise resource planning platform—was redirected to institutions based on academic year 2024–25 performance goal attainment.

All other operating budget priorities remain unchanged from the Board’s October 2025 action, including:

• Systemwide Priorities: Recommended reallocations will support a future systemwide enterprise resource planning platform, AI computing capacity and institutional strategic reinvestment plan implementation. New funding requests provide for compensation increases, performance funding, Talent Ready Utah initiatives and O&M for newly funded capital projects.
• Technical Colleges (Conditional on Available State Revenue): $10.7 million in new ongoing funding will expand high-demand programs with student waitlists and support pre-funding programs in new capital facilities at Ogden-Weber and Dixie Technical Colleges.
• Degree-Granting Institutions (Conditional on Available State Revenue): $10.5 million in new ongoing funding will support workforce and strategic initiatives, including the University of Utah’s accelerated medical degree program, Utah Valley University’s Olympic Workforce 2034 initiative and Weber State University’s public safety credentialing programs, among other items.

The Board continues its bifurcated request approach: prioritizing system-level items while advancing technical college and university requests contingent on the availability of new state resources.

Capital Budget Updates

In accordance with statute, the Board also approved an update to its FY 2026-27 capital development priorities. In partnership with DFCM, the system continues to implement process improvements to strengthen cost transparency and project planning.

Updated Capital Items

• Dixie Technical College — Trades & Technology Building: The one-time state funding request is expected to decrease by at least $918,700, pending DFCM’s formal Construction Budget Estimate (CBE). The final CBE is expected before the Board’s January 2026 meeting.
• Salt Lake Community College – Aviation Maintenance Building: The ongoing state funding request for O&M decreased by $32,400 to $227,500.

All other capital request priorities remain unchanged, with the following updated summary:

• Approved Dedicated Projects:
  • Weber State University: Student Services – North Renovation (Phase 2), $6.7 million; O&M $0
  • Utah Tech University: Health Sciences Building & Taylor Remodel Planning & Design, $6.1 million; O&M $0
  • Salt Lake Community College: Aviation Maintenance Building, $14.3 million; O&M $227,500
  • Bridgerland Technical College: Main Building Partial Remodel, Renovation & Repurpose (Phase 1), $3.8 million; O&M $0
  • Southwest Technical College: Diesel Technology Program Building, $3.5 million; O&M $55,200
• Approved Non-Dedicated Capital Priorities:
  • Utah State University: Math, Artificial Intelligence, Data, and Analytics Center, $19.5 million in new funds, $23.6 million in dedicated funds; O&M $282,800
  • Dixie Technical College: Trades & Technology Building, $47.6 million in new funds, $10.3 million in dedicated funds (pending update above); O&M $1 million

The Commissioner of Higher Education will next submit the Board’s updated FY 2026-27 operating and capital budget priorities to the Utah Governor’s Office and Legislature for consideration during the 2026 General Session.

For detailed breakdowns of budget priorities and updated attachments, see the meeting agenda materials.