Lump-Sum Merit Pool and Budget Impacts for FY27

PNW faculty and staff,

As we near the end of the spring semester, we extend our sincere gratitude for all you do each day to support our students and advance Purdue University Northwest. Your dedication continues to shape a vibrant, student-centered university and strengthens our shared mission of transforming students’ lives.

Across higher education, institutions are navigating a more challenging financial landscape shaped by state funding reductions, a freeze on tuition rates for Indiana students, rising operational costs and enrollment challenges. At PNW, these factors will result in an anticipated $4 million budget impact for FY27. However, we have been able to mitigate this outcome through the elimination of open positions, reallocation of resources and reductions in expenses.

Due to this careful planning and disciplined stewardship, we are pleased to announce a 2% merit pool for a one-time lump sum payment in July 2026 for benefits-eligible PNW faculty and staff, pending approval by the Purdue Board of Trustees. Supervisors will allocate individual awards from the pool based upon performance during the 2025-26 fiscal year.

Please note that while the total pool equals 2% of eligible salaries, individual amounts may vary – some employees may receive more than 2%, and others may receive less, depending on merit-based assessments. The Office of Finance and Business Services will provide further guidance to supervisors to help determine and communicate individual award amounts.

Because of you, Purdue Northwest continues to make a meaningful difference in the lives of our students and in the communities we serve. Thank you for your continued dedication and for all you do to move our university forward.

Chancellor Holford and the Senior Leadership Team