Aidan Vanhoof

Aidan Vanhoof, Staff Writer

April 29, 2026

Rowan University faces a substantial budget deficit through 2026. Nearing $16.5 million, its causes are a cocktail of new projects, investment, and market cruelty. 

Currently, Rowan University is dipping into operating reserves. 

Rowan’s revenue totals $797.5 million. Its expenditures total $814 million, according to the 2026 Consolidated Operating Budget. The university is in the midst of a rapid growth phase, pushing for new startups meant to yield returns through 2027. 

“I think it was a $16.5 million deficit that we’re projecting,” said Michael Blake, Vice President of Budget and Financial Planning at Rowan. “A large portion of that was related to startup costs, either related to growing online or the vet school, and some other areas that were startup costs. And we realized there was going to be a gap, and we understood that that gap could carry over multiple fiscal years, potentially until we reached that scale that we believe we will reach in fiscal year 27. So we’re trying to bridge a gap between fiscal years.”

In turn, tuition and fees are likely to increase by 4.5%, and medical programs will feature a 10% international surcharge. 

The reasons for this deficit are diverse. 

The ongoing expansion of Rowan Online has thus far meant $9.8 million spent on marketing and 45 new staff positions. 

The Edelman Fossil Park & Museum in Mantua, which opened this past March, took $2.7 million to operate. The Physician Assistant Program demanded $2.5 million. Likewise, the Shreiber School of Veterinary Medicine required $1.3 million, including 117 new staff positions. 

Rowan also pays $52.3 million in debt service, a $4.8 million increase from last year, in part due to new startups, like the aforementioned Edelman Fossil Park & Museum. 

“As you can see on this budget, we have $52 million of essentially mortgage payments that we’re making every year,” said Blake. “So $52 million goes off the top right for those debt services. And it’s not only the cost of constructing these buildings, but the debt from financing these buildings. The market has been such that we’re paying higher interest rates right now than we were several years ago.”

Despite high spending, the state of New Jersey cut aid by $9.5 million. Rowan relies on the state for 25.7% of its revenue. 

Then, while international students were admitted, due to unexpected issues with student visas, many could not physically arrive. These students typically pay higher tuition rates, meaning their absence triggered a loss in revenue totalling $7 million. 

“We lost approximately $7 million in revenue associated with not having our graduate students and some of our undergraduate students being able to obtain visas to come and participate here on campus. And that was an unexpected cost, quite frankly,” said Joseph Scully, Senior Vice President of Finance and Chief Financial Officer at Rowan.

In addition, the state of New Jersey pays for benefits for 2,050 employees. The rest receive costly benefits from the university itself. Since Rowan hired more than 2,050 people, they’re confronting a $44.9 million loss in fringe benefit costs for those not covered by the state. 

Finally, the university increased the aid it distributes by $30.2 million, totalling $88.7 million in aid, while tuition income hasn’t successfully counteracted. 

“One of the issues that is affecting the university significantly is our scholarships and waivers,” said Scully. “And although you see an enrollment increase of nearly 4%, I think it was 3.8% this year, we’re seeing a net decline in our net tuition revenue per student because of the additional aid that we have to provide these students to be able to attend the university.”

However, a revamped distribution model for Rowan Global ensures more revenue is funneled directly back to the university. And a new voluntary separation program—in which eligible employees who quit may receive a payment based on their salary—is expected to save between $8 and 10 million in salary expenses. However, this number depends on how many eligible employees actually choose to leave.  

If a new position opens, the university can hire fresh employees more tolerant of lower salaries, and, with more vacant positions, the university can shift employee benefit costs from Rowan’s pocket to among the 2,050 allocated slots for state benefits. 

However, Rowan University won’t stop hiring. Only, they’re altering positions in older management and academic areas.

The voluntary separation program applies to AFT Local 2373 members, managerial employees, and those with 10 or more years of experience working for Rowan. Some newly vacant positions won’t be filled, and tasks once performed by humans may see digital replacements. 

There are holes in Rowan University’s plan. Operating reserves—essentially the University’s savings—are not endless. If 2027 doesn’t pan out as they expect, it can cause serious financial problems. 

Plus, expansion reliant on debt means funding for other essential areas, like maintenance, is deferred. 

“Deferred maintenance is a very large number,” said Kevin Koett, Vice President for Student Life. “I will say it’s in the multi-millions category. I’m just guessing here, probably close to maybe several hundred million dollars. But the university, again, over the years, our margins have gotten to the point where we don’t have the ability to do that.”

This could affect not only maintenance, but ongoing projects like the currently closed Campbell Library. 

“The Senate passed a resolution encouraging the administration to do a number of things with the library,” said Dr. Bill Freind, the President of the University Senate. “Joe Basso and I have a meeting with Muriel and Tony Lowman at the end of April. I am cautiously optimistic about that meeting, but we will see. So hopefully we get our library back the way it should be.”

Market volatility, like the international student visa shock, renders Rowan financially vulnerable. And ongoing debt, mostly stemming from property development, means Rowan must succeed in covering such obligations. 

In essence, Rowan University’s budget deficit comes from intentional overspending for a gamble on growth.

For comments/questions about this story, DM us on Instagram @thewhitatrowan or email ottoch32@rowan.edu