At the special meeting of the Board of Trustees on March 18, President Dennis Assanis and his leadership team provided updates on the challenging environment and the many uncertainties that higher education and the University of Delaware need to confront, including the impact of executive orders and federal actions, enrollment, employee benefits and the budget.

“The leadership team and I are doing everything we can to minimize disruption to UD students, faculty and staff while at the same time complying with the federal law,” Assanis said. The Federal Action Updates webpage was created to provide appropriate guidance to the UD community.

“It is essential for the University to remain focused on its institutional mission,” Assanis continued. “We are committed to, and celebrate the success of, every student at UD. We promote academic freedom and the free exchange of ideas and opinions. Further, we will continue to welcome and value people of all backgrounds, perspectives and learning experiences; we will continue to encourage respect and civility toward everyone.”

Miguel Garcia-Diaz, vice president of research, scholarship and innovation, provided examples of how the federal executive orders are affecting researchers.

He discussed the proposal to cap indirect costs at 15% for grants from the National Institute of Health (NIH). Examples of indirect costs include security and data storage, maintenance of research facilities and high-performance computing equipment, and other essential expenses such as utilities, Garcia-Diaz said. The proposal is currently under a temporary restraining order.

“Indirect costs, also known as facilities and administrative rates, are essential to conducting world-class research effectively, efficiently, safely and securely,” said Garcia-Diaz. “These expenses are difficult to attribute to individual research projects. Without federal reimbursement, research labs would go dark.”

Federal agencies are still open and functioning, and Garcia-Diaz encouraged researchers to visit the Federal Funding Guidance website for real-time information and resources. He also said that researchers should continue to submit research proposals and invoices, even as there are concerns about limited communication and delays with reviews and funding timelines.

Provost Laura Carlson recognized the efforts of faculty in growing enrollment in strategic areas, including winter session and spring transfers. She also said that domestic spring admissions are up, but international admissions are down.

Assanis said that while overall enrollment is down at other institutions, “we are still receiving record numbers of first-time, full-time undergraduate applications for the sixth consecutive year: almost 41,000 this year!”

However, award terminations coupled with delays in grant reviews make federal funding and support for graduate students more uncertain, which will impact graduate recruitment, specifically for doctoral programs, Carlson said. She also noted the robust pipeline of new programs, including dual-degree initiatives, and thanked the Faculty Senate for its efforts in the approval process.

Also ahead is a change in the management of health insurance benefits for employees and retirees, said Melissa Bard, vice president and chief human resources officer. Beginning July 1, the University will directly manage the benefits, ending the University’s voluntary participation with the state health plan. Bard said that the year-long decision process was led by the Office of Human Resources in consultation with Segal, UD’s benefits broker, and input from UD’s Benefits Cost Containment Committee.

“We are committed to providing a highly competitive benefits package for our current and future employees, caring for our retirees and retaining our position as a top employer in the state,” Assanis said.

Bard said HR and other units are preparing for open enrollment May 1-16.

The shift in health insurance benefits should help mitigate some of the pressures on the University’s budget, said Mary Remmler, senior vice president and chief financial officer. She reported on UD’s mid-year financial status for FY25 and discussed early indicators for FY26. She said that the current operating budget is $1.3 billion.

“We are not alone in budget challenges,” Remmler said, “but UD’s budget picture has improved as departments have gained more information about their revenues and expenses.”

Remmler said the FY25 budget was projected to have a shortfall of $54 million, but that is now down to approximately $25 million due to revenue earned from increased enrollment for the winter 2025 session, state allocations, philanthropic gifts and the cost-containment measures put in place last year that rolled over into this year.

“When we talk about planning for next year, there are five categories that we consider: enrollment management; tuition, fundraising and revenue; personnel costs and efficiency; capital planning; and external factors,” Remmler said. “For example, when we think about enrollment management, the size of the entering class target is important. Is it aligned with our revenue needs? Is it aligned with multi-year enrollment goals?”

Assanis also discussed the importance of long-term capital planning, using the recent $71.5 million gift from Robert and Kathleen Siegfried to benefit UD’s Lerner College of Business and Economics as an example of the timeline for major projects. The concept of a new building for Lerner has been in discussion for years. The University will commission the design process for Siegfried Hall this spring, with a goal of breaking ground within the next four years. 

“Planning and fundraising are long-range activities, and they are the only way these big projects will become reality,” Assanis said. “The impact of this transformational gift on our Lerner students, faculty and staff will be immense. It will prepare our students for the skills of tomorrow, marrying the digital and human worlds in an environment promoting collaboration. And it will propel Lerner into excellence among its peers.”

Also at the meeting, the trustees approved the nominating committee’s recommendations:

• Jeremy Axe to serve a term of six years, replacing the prior election of Eric Fearwald.

• Re-election of Christopher Baker and Guy Marcozzi, each to serve a term of six years.