In an era of shifting economic landscapes and evolving academic needs, Rice University is navigating a sophisticated balancing act. On the one hand, the university is witnessing historic growth in its student body, faculty, and physical campus; on the other hand, we are proactively addressing financial "headwinds" through a combination of strategic incentives and operational modernization.
Provost Amy Dittmar and I recently presented at the Administrators’ Forum to discuss the role of the Voluntary Separation Incentive Program (VSIP) within this broader context. Below is a summary of that discussion. A recording of the full presentation is also available on the Administrators' Forum webpage.
The Growth Paradox: Investing While Conserving
FY26 marked a period of significant expansion for Rice. The university welcomed the largest incoming class in the university's history and onboarded a record 96 new faculty members—a major investment in our core research and teaching mission. This academic growth is mirrored by nearly $330 million in active construction projects and ongoing investments in our staff through the Total Rewards Initiative.
However, this growth occurs amid increasing economic pressure. University leadership has identified potential fiscal challenges through FY29. As these challenges arise as the university grows, we need new approaches to ensure we can support our strategic ambitions while navigating these potential headwinds.
VSIP: A Catalyst for Change
To meet these challenges, Rice implemented VSIP to align our workforce with long-term strategic goals while achieving $15 million in ongoing savings. The program saw a 31% participation rate among eligible staff, with 240 employees choosing to separate.
While we acknowledge the loss of deep historical knowledge from these departing colleagues, which we are actively addressing, the program has provided the budgetary flexibility to reinvest in our remaining workforce and modern infrastructure. We know that for those who remain, this transition brings questions about workload and capacity.
Building Momentum Together (BMT)
Within Operations, Finance & Support, our Building Momentum Together (BMT) initiative is central to how we move forward.
BMT reflects our commitment to operational excellence and a people-centered approach to change. It is focused on refining our systems and service delivery models to ensure seamless interactions, reduced administrative friction, and better support for faculty, staff, and students.
Current priorities include:
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Facilities Reimagined – Moving to a unified service delivery model to improve responsiveness and transparency.
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Procurement Services – Enabling more strategic purchasing and stronger financial stewardship.
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Research Administration – Strengthening and streamlining support for faculty-led research.
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HR Transformation – Modernizing internal processes to serve our community better.
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OIT Reimagined – Enhancing the user experience through technology-enabled transformation.
This work is not about doing more with less. It is about doing the right work in smarter ways—leveraging data, technology, and cross-functional collaboration to create a better experience for our campus community.
Key Questions Answered
Beyond the reasoning behind VSIP and understanding how BMT is poised to fill some of those gaps, we addressed some key questions from the community:
Will employees who took VSIP be replaced?
We are not following a one-for-one replacement model. Instead, we are asking leaders to pause and thoughtfully evaluate each role. In general, our approach is to refill approximately 40% of vacated positions and reinvest 60% of the savings into high-need areas and our academic and research mission. In some cases, roles will be reimagined or redesigned. In others, resources may be redirected to areas of greater strategic impact.
This approach will allow us to align our structure with our priorities—not simply recreate what existed before.
How are we supporting professional development?
Investing in our people remains a priority. We have expanded tuition reimbursement programs and launched a new Learning & Development module in iO, giving employees access to thousands of digital learning courses. In addition, HR will introduce new in-person managerial leadership training this fall to equip leaders with the tools they need to guide teams through change.
How are we supporting pay increases for FY27?
Despite economic headwinds, we are committed to a 2% merit pool for next year.
We are also making a targeted investment in our lower-wage employees by increasing the base pay from $15 to $18 per hour. In parallel, we are allocating resources to address pay compression to ensure fairness for those already near those levels.
Why continue capital construction during these changes?
Our capital projects are a direct response to historic growth. As our student body and faculty expand, we must relieve pressure points in classroom and office space to support teaching, learning, and research.
In addition to major projects, we are actively optimizing space—converting underutilized areas into functional academic environments and ensuring we use our physical footprint wisely.
Looking Ahead
The programs underway—from VSIP to Building Momentum Together—are not simply about reducing costs. It is about aligning our resources with our highest priorities.
We are committed to being transparent about the challenges we face and deliberate in how we respond. By strengthening our operations, investing in our people, and modernizing our systems, we are positioning Rice to remain resilient and world-class for years to come.