These FAQs reflect information available as of July 2026. As questions emerge through community forums and other channels, we will update this page with additional information as appropriate.
Budget and financial sustainability
Are we in a financial crisis?
No. Mount Holyoke remains financially strong, with a healthy endowment, successful enrollment, strong philanthropic support and a clear strategic plan.
Why are budget cuts needed?
The College entered FY27 with a structural budget gap exceeding $12 million. Rising healthcare costs, utilities and other operating expenses, together with recurring expenses that have grown faster than annual revenue, require the College to take action now. Approximately $5 million in recurring savings must be identified to ensure long-term financial sustainability.
What is a structural budget gap?
A structural budget gap occurs when the College’s recurring expenses consistently exceed its recurring revenue. Unlike a one-time shortfall, a structural budget gap requires permanent changes to ensure the budget remains balanced over time.
Why is it important for the College to have a balanced budget?
A balanced budget ensures that Mount Holyoke can continue fulfilling its mission not only this year, but for years to come. When a college consistently spends more than it brings in, it eventually has fewer resources available to support students, faculty, staff and academic programs. Maintaining a balanced budget also helps preserve the College’s financial strength (e.g. a good credit rating increases our borrowing power) and it supports responsible stewardship of donor and institutional resources.
Why can’t the College use the endowment instead of reducing expenses?
Mount Holyoke’s endowment provides critical annual support for financial aid, faculty positions, academic programs and many other priorities. Much of the endowment is restricted by donors for specific purposes and it is designed to provide long-term financial security rather than short-term relief. »Read more about endowments.
But wasn’t the endowment used during the COVID-19 pandemic?
Though not ideal or preferred, the endowment can be used during extraordinary circumstances (such as a global pandemic) if the Board of Trustees permits. Our current structural budget gap is not the same as COVID-19. This gap will continue unless we find ways to bridge it, and we cannot make a habit of taking these funds from the endowment as it would eventually run out of funds.
Why is the College continuing campus renewal projects while reducing budgets?
Many campus renewal projects are funded through designated gifts, debt financing or other dedicated funding sources that cannot be redirected to support operating expenses. Maintaining and improving campus facilities is also part of the College’s long-term strategy to support students, strengthen enrollment and expand future revenue opportunities.
The College surpassed our fundraising goals in FY26 — why do we still have this pressure to reduce expenses?
FY26 was one of the strongest fundraising years in Mount Holyoke’s history, reflecting the extraordinary generosity of our alum community, families, grant funders and friends. Philanthropy is a critical part of the College’s financial model. Each year The Mount Holyoke Fund (MHF) supports approximately 5–7% of the College’s operating budget. As the College’s operating budget has grown, both The MHF goal and results have increased each year. In FY26, The MHF exceeded its goal by approximately $1.5 million, providing additional support for the operating budget at a critical moment. In addition, distributions from the endowment, built through generations of philanthropic support, provide significant annual funding for financial aid, faculty, academic programs, and other core operations, even if those resources are not visible in individual departmental budgets.
At the same time, many gifts are restricted by donors for specific purposes and cannot be used to cover general operating expenses. Philanthropy also enables investments in priorities that the operating budget alone cannot support, such as capital improvements.
Why doesn’t the College simply enroll more full- or fuller-pay students?
Mount Holyoke’s commitment to access is central to our mission. Many students come from middle-income families and rely on financial aid to attend. The College’s enrollment strategy is designed to build a talented, diverse student body while maintaining long-term financial sustainability. That includes enrolling students with a range of financial circumstances, not simply maximizing the number of full-pay students. The pool of students who both qualify for admission and can pay the full cost of attendance is limited, and competition for those students is significant across higher education.
What is the Financial Sustainability Working Group?
The Financial Sustainability Working Group will begin its work during the 2026–2027 academic year. Its charge is to examine Mount Holyoke’s long-term financial model and identify opportunities to strengthen the College’s financial sustainability while supporting its mission.
The group’s work is separate from the immediate FY27 budget actions. It will make recommendations that help inform future planning, and institutional decisions will continue to follow established governance and leadership processes. With the group’s recommendations in mind, the College will create a financial sustainability operational plan.
FY27 budget reductions
How are budget reduction decisions being made?
We recognize that everything we currently do is of value — that is why we do it. However, the Board of Trustees directed the College to identify approximately $5 million in recurring savings for FY27. Every division has been asked to identify expense reductions while preserving the College’s core academic mission. Division leaders are evaluating their own operations to determine where savings can be achieved with the least possible impact.
Some actions may be temporary, while others will remain in place to support the College’s long-term financial sustainability.
When will budget reduction decisions be communicated?
Some decisions, such as the closure of the Ombuds Office and the Language & Culture Commons, have already been announced. Division leaders are developing additional FY27 budget plans, which are due to President Holley and Vice President Ries by July 15.
The College will communicate decisions through the channels most appropriate to those affected. Some decisions have institution-wide implications and will be shared broadly, while others will be communicated directly to the individuals or departments involved.
Why are different divisions making different types of reductions?
Each division has different responsibilities, staffing structures and operating budgets.
Because of those differences, the opportunities for savings vary across the College. Division leaders are responsible for determining how best to meet their budget targets while supporting institutional priorities.
What is “essential hiring only?”
The College is conducting a strategic review of all vacant positions before searches move forward.
Some positions may remain unfilled or searches may be paused, while others will continue based on institutional priorities, operational needs and risk management considerations.
How long will the period of essential hiring last?
The period of essential hiring is in effect until further notice. Vacant positions will continue to be reviewed individually based on institutional priorities and operational needs.
Will there be additional staffing reductions?
Division leaders continue to evaluate budgets and operations.
While the College will prioritize savings through vacant positions and operational efficiencies whenever possible, some divisions may need to reduce staffing levels to meet their budget targets. Because this work is ongoing, the College cannot comment on specific future decisions.
Why are these decisions happening during the summer?
The Board of Trustees approved the FY27 budget in mid-June, and the new fiscal year began July 1.
To achieve the savings required for FY27, some actions needed to begin immediately. We recognize that summer is not an ideal time to communicate decisions, particularly when many members of our community are away. However, delaying implementation would reduce the College’s ability to achieve the savings necessary this fiscal year.
Looking ahead
Will there be additional opportunities to ask questions?
Yes. The College will host additional community forums throughout the academic year. A forum for staff will take place on Tuesday, August 18, at 2 pm in Gamble Auditorium. Additionally, one of the first faculty meetings of the year will be devoted to an update.
How will future budget decisions be made?
The FY27 budget work addresses the College’s immediate financial needs. Longer-term planning will also be informed by the Financial Sustainability Working Group, which will examine the College’s financial model and future priorities. Institutional decisions will continue to follow established governance and leadership processes. The Board of Trustees has final authority over the annual budget.