For the second year in a row, Northern Kentucky University has passed an operating budget without dipping into its cash reserves to cover expenses.
The university's Board of Regents voted to approve the $222 million financial proposal Wednesday morning, leaving the school with a $2.1 million surplus heading into the new academic year.
The budget's approval marks a major milestone for NKU. The college has been digging itself out of a deep financial hole since 2022, when its operating deficit peaked at around $24 million amid an enrollment slide and rising costs following the start of the COVID-19 pandemic.
"I have led in times of deficit and surplus, and it is a lot more fun to lead when we have money," President Cady Short-Thompson told the regents.
NKU's leadership celebrated the balanced budget and financial surplus, but it comes at a cost. The university is raising student tuition and fees for the 2026-2027 academic year by 2%. This comes after a 3% tuition increase the year prior.
NKU also announced staff layoffs in Fall 2025 to account for smaller-than-expected state appropriations tied to the school's academic performance. Short-Thompson warns that more changes are coming as the college works to attract more students and make its various academic departments run more efficiently.
"We will continue to reorganize to flourish and realize our goals," she said. "Long-standing practices or ways of operating will continue to change."
The Board also approved a 3% raise for salaried faculty and staff.
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