{"id":314125,"date":"2026-06-20T13:18:11","date_gmt":"2026-06-20T13:18:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-fl\/314125\/"},"modified":"2026-06-20T13:18:11","modified_gmt":"2026-06-20T13:18:11","slug":"fsu-board-oks-record-3-22-billion-operating-budget-for-2026-27-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-fl\/314125\/","title":{"rendered":"FSU board OKs record $3.22 billion operating budget for 2026-27"},"content":{"rendered":"

Florida State University’s<\/a>Board of Trustees<\/a>\u00a0has approved a\u00a0record-breaking\u00a0$3.22\u00a0billion\u00a0operating budget for the 2026-27\u00a0fiscal year \u2013 an increase\u00a0from the\u00a0$2.97 billion\u00a0that\u00a0was\u00a0approved\u00a0last year.\u00a0<\/p>\n

And while the overall operating budget\u00a0figure has gone\u00a0up, funding for capital projects \u2013 including the FSU Health Research Center \u2013 decreased a bit and comes as the university’s new FSU Health enterprise with Tallahassee Memorial Healthcare did not\u00a0receive direct funding from the legislature in next year’s proposed\u00a0state budget<\/a>.\u00a0<\/p>\n

FSU officials are hoping for $5 million in health facility deferred maintenance from a special education fund. But nothing is certain as Florida Gov. Ron DeSantis has yet to decide on line item vetoes for the spending plan that was approved by lawmakers last month.<\/p>\n

However, this year’s\u00a0capital project\u00a0funds\u00a0at FSU\u00a0also\u00a0include\u00a0over $100 million for the northwest campus project<\/a> for new housing,\u00a0dining\u00a0and parking\u00a0\u2013 the most expensive initiative in the spending category.<\/p>\n

“It was a tremendous year for the university in light of the state’s economic conditions and the funds that they had to invest in higher education,” FSU Senior Vice President for Finance and Administration Kyle Clark told\u00a0trustees\u00a0during a June 18 meeting, where the board approved the\u00a0new\u00a0budget.\u00a0While board members held the meeting virtually, Clark and other university administrators and staff members tuned in from the Turnbull Center.<\/p>\n

The $3.22 billion\u00a0operating spending amount \u2212 which includes over a billion dollars for wages and benefits\u00a0\u2212 is a\u00a04.5% increase from\u00a0last year’s amended\u00a0$3.08 billion\u00a0budget\u00a0for 2025-26, which came after\u00a0a\u00a0$2.97 billion\u00a0budget\u00a0was initially\u00a0approved<\/a>\u00a0by the board\u00a0before the amendment was made.\u00a0<\/p>\n

“This year’s budget positions Florida State University to move strategic priorities forward and build on our momentum as one of the top public universities in the nation,”\u00a0FSU\u00a0President\u00a0Richard McCullough<\/a>\u00a0said in a prepared statement. “It will expand opportunities for students, strengthen our ability to attract and support exceptional faculty and staff, and deepen our impact across Florida and beyond.”\u00a0<\/p>\n

“We appreciate the continued confidence of the Florida Legislature and Gov. Ron DeSantis in FSU’s ability to deliver meaningful results for the people of Florida.”<\/p>\n

\"Florida<\/p>\n

Florida State University President Richard McCullough attends the Board of Governors meeting on Thursday, Jan. 29, 2026.<\/p>\n

FSU capital projects will cost over\u00a0$450 billion\u00a0in ‘dynamic’ budget\u00a0<\/p>\n

The\u00a0budget includes\u00a0$454.64\u00a0million for capital projects\u00a0compared to\u00a0$485.6\u00a0million last year, which\u00a0is\u00a0a 6.5% decrease.\u00a0One of the initiatives being funded in the category is the future\u00a0FSU Health Research Center in Tallahassee, which\u00a0will get $55 million,\u00a0compared to $107.6 million in the 2025-26 budget. FSU officials said the decrease is because crews are set to complete construction work on the FSU Health Research Center<\/a>, which is rising next to the existing TMH hospital.<\/p>\n

While direct funding\u00a0from the state’s proposed 2026-27 legislative budget\u00a0isn’t\u00a0going toward\u00a0the new FSU Health<\/a>\u00a0enterprise with TMH \u2013\u00a0which\u00a0has the broader goal of transforming the quality of healthcare in Florida’s most underserved regions \u00a0\u2013 lawmakers will allow the university to use existing money to pay for FSU Health plans, including the acquisition of the hospital campus.<\/p>\n

FSU acquired ownership of TMH’s campus<\/a>\u00a0from the city of Tallahassee in a controversial process earlier this year and agreed to pay the city $3.6 million per year for 30 years.\u00a0<\/p>\n

Related news: Done deal: City commission casts 3-2 final vote for TMH sale to FSU<\/a><\/p>\n

Funding for the FSU Health is not a single\u00a0line\u00a0item\u00a0in the university’s operating budget, Clark explained. Instead, it is distributed across multiple areas\u00a0with\u00a0several research initiatives \u2013 such as the Florida Institute for Pediatric Rare Diseases<\/a> and Sunshine Genetics<\/a> \u2013 supported through the budget.\u00a0\u00a0<\/p>\n

In addition, although TMH is on its way to being a part of FSU,\u00a0Clark says\u00a0future budget decisions\u00a0for the facility\u00a0won’t\u00a0be made until the hospital’s\u00a0governing board\u00a0establishes\u00a0strategic priorities\u00a0to ensure investments are targeted and responsive to the region’s healthcare needs.\u00a0<\/p>\n

Regarding\u00a0education and general funds for tuition and fees in the new budget,\u00a0they\u00a0come out to\u00a0nearly $280 million\u00a0as tuition costs for in-state students\u00a0remain\u00a0the same for over a decade.\u00a0“There’s no change to in-state undergraduate and graduate tuition for the 13th\u00a0year, which is really remarkable,” Clark\u00a0told the board.<\/p>\n

At the same time,\u00a0a\u00a015% increase in out-of-state tuition fees<\/a>\u00a0for non-resident undergraduate, graduate and law school students was approved\u00a0last year\u00a0for\u00a0this\u00a0fall\u00a0at FSU and other public universities across the state as a directive from the Florida Board of Governors.<\/p>\n

Wages and benefits\u00a0are\u00a0listed as the top spending category in the new FSU operating budget at\u00a0$1.16\u00a0billion, but\u00a0pay raises are pending as the\u00a0collective bargaining process between the university and unions is ongoing.<\/p>\n

\"FSU<\/p>\n

FSU Senior Vice President for Finance and Administration Kyle Clark listens as the City of Tallahassee, Florida State University and Tallahassee Memorial HealthCare meet to discuss the sale of the hospital Wednesday, October. 1, 2025.<\/p>\n

“We say this every year, but it’s a tremendous undertaking,” FSU trustee Jorge Gonzalez said during the Thursday meeting, referring to the operational spending plan. “It’s a very complicated budget, and\u00a0it’s\u00a0very dynamic.”\u00a0<\/p>\n

\"St.<\/p>\n

St. Joe President and CEO Jorge Gonzalez speaks as FSU Health and Tallahassee Memorial Healthcare host a construction kickoff event for their medical campus in Panama City Beach, Fla. on Tuesday, Jan. 17, 2023.<\/p>\n

Florida A&M University’s<\/a> board also recently approved a 2026-27 operating budget during a June 11 meeting, which came out to $451.1 million for the fiscal year. The total amount set aside for FAMU capital projects was not specified.<\/p>\n

Here are\u00a0all of\u00a0FSU’s 2026-27 capital projects, with dollar amounts for each:\u00a0<\/p>\n

Northwest Campus – Housing, Dining and Parking: $112 million\u00a0<\/p>\n

FAMU-FSU College of Engineering Building C: $60 million\u00a0<\/p>\n

Academic Health Center – Tallahassee: $55 million\u00a0<\/p>\n

Kellogg Remodel: $20 million\u00a0<\/p>\n

Veterans Legacy Complex: $15 million\u00a0\u00a0<\/p>\n

Football\u00a0Operations\u00a0Facility: $13.14 million\u00a0\u00a0<\/p>\n

Dittmer Remodel: $10 million\u00a0<\/p>\n

Rovetta Remodel: $10 million\u00a0<\/p>\n

All others (220\u00a0projects under $10 million): $159.49\u00a0million<\/p>\n

Tarah Jean is the higher education reporter for the Tallahassee Democrat, a member of the USA TODAY Network \u2013 Florida. She can be reached at\u00a0tjean@tallahassee.com<\/a>. Follow her on X:\u00a0@tarahjean_<\/a>.<\/p>\n

This article originally appeared on Tallahassee Democrat: FSU Board of Trustees approves $3.22 billion 2026-27 operating budget<\/a><\/p>\n