Editor’s note: A previous version of this story, “Athletics’ deficit and large-scale investments contribute to WSU’s growing debt” published March 24, incorrectly attributed part of Wichita State University’s debt to a budget deficit in the Athletics Department and misrepresented the amount of debt the university carries. The university’s debt is associated with the construction of various buildings. It is not related to the athletic deficit. 

Reporting incorrect figures regrettably clouds an already complex topic. It’s important to be transparent with readers and admit when we make a mistake, and for that reason, we have added this note to the story and updated it with correct information and context surrounding both the university’s debt and the unrelated athletics deficit.

The Sunflower values accuracy and is committed to taking accountability when information reported is incorrect.

Wichita State’s investments are driving its debt for fiscal year 2026, which is projected at $235.9 million. 

Investments in WSU’s Innovation Campus and other building projects, such as University Stadium, Woolsey Hall and the John Bardo Center, contribute to this debt. 

The $235.9 million excludes pending debt and $25 million for a new WSU Tech training center and hangar. The figure is a projection through the end of fiscal year 2026, which runs through June 30, 2026.

During the Kansas Board of Regents March 11 meeting, Chief Financial Officer David Miller presented WSU’s mid-year financial reports, giving the outlook for the coming fiscal year and related budget cuts. KBOR oversees public higher education in the state. 

In fiscal year 2025, WSU’s accumulated debt was $219.6 million, a $21.9 million increase from the previous year. It increased by another $16.3 million from 2025 to 2026, which Miller attributed to the State Aviation Jobs Loan Program approved by KBOR in October.  

The program can be used to fund either aviation maintenance, repair and overhaul operations — which is what WSU will use it for — or airport authority. This program required a ten-year term loan of $23 million to be taken out by WSU.  

Large university development projects contribute to the debt, including the renovation of University Stadium, formerly Cessna Stadium, and the construction of the National Institute for Aviation Research’s Hub for Advanced Manufacturing and Research. 

The Wichita Biomedical Campus is funded through state appropriations and donations, meaning it does not contribute to Wichita State’s capital debt. 

The University Stadium project will cost about $65 million total. The final phase of construction will start in the summer and cost $46.4 million. It will be funded through a bond, which the university will pay off over 30 years. The WSU Board of Directors will shoulder most of the cost, with donations and local partnerships — like allowing Wichita Public Schools to use the stadium for events — covering around 10%.

The construction of the NIAR Hub for Advanced Manufacturing and Research cost $69 million and is projected to finish by the end of the spring semester, in May. 

Wichita State’s budget deficit 

Wichita State is facing at least a 7% decrease in its general use budget for fiscal year 2027. Various factors contribute to the deficit, including decreased international enrollment, a possible decrease in state funding, and higher athletics costs. 

Miller said during his presentation to KBOR that the main factors for this reduction are inflation on costs of software, leases, utilities and more, totaling about $2.3 million for FY 2027.

At the federal level, President Donald Trump is gradually dismantling the Department of Education. One of the department’s functions is overseeing various grants that go to educational institutions. 

“In the sense of federal funding — (there are) definitely concerns,” Miller said when asked about the current situation of the Department of Education. “But I would say one of the strengths for us is that a lot of research is concentrated on the Department of Defense side, and that gives us, I think, some insulation from some of the environment currently going on.” 

Miller reported that revenue for WSU primarily comes through grants and contracts, making up about 45% of FY 2025 revenue. State appropriations compose 17% of the revenue, and tuition and fees about 13%. 

Nearly half of WSU’s General Use Budget expenses come from compensation and benefits to university personnel, at about 47%. Miller also highlighted that the largest growth in expenses for WSU was research, increasing from $130.4 million in 2021 to $321.9 million in 2025. 

To support athletics, WSU increased its spending on student services from $39.2 million in FY2024 to $47 million in FY2025. In addition to athletics, student services encompasses a variety of operations, including academic advising, admissions and financial aid. 

The budget cuts have led to staff reductions in athletics and at least one academic department, and are causing restructuring of various departments.  

“(There are) a few things that keep me up at night, and that is just sustaining our research growth and enrollment growth with a shrinking staff support because of the budget cuts that we’ve been addressing,” Miller said. “And how we continue to work through the challenging employee compensation setting that all of our institutions are working through.” 

Division I Athletics operating on a deficit and the House vs. NCAA settlement also factor into the university budget deficit. 

According to WSU’s Director of Strategic Communications, Lainie Mazzullo-Hart, via email, athletics deficits were addressed in previous years by drawing from athletics reserves. However, those reserves were depleted due to increased costs associated with the House vs. NCAA settlement. As a result, additional funding was allocated from other university budgets to cover the deficit. 

“WSU does not have football, and so we do not have … that type of revenue related to football programs,” Miller said when talking about the athletics deficit. “As we got into last fiscal year 2025, we knew that we would have operating deficits within our athletics department, and that’s even before the House and the NCAA settlement occurred.” 

Miller said the athletics deficit was included in the budget for FY 2026, and the FY 2027 budget projects an additional $1 million on top of the already present deficit. WSU has used tuition revenue partially for athletics for over 20 years, according to Miller. 

“Working through these operating deficits isn’t a place we want to be, but it’s where we are,” Miller said. 

Staff changes in finance and audit

Chris Cavanaugh, WSU’s director of internal audit services, said that the athletics department is currently operating without a chief financial officer. Cavanaugh has helped athletics complete its financial reporting since the previous CFO resigned mid-year. 

Cavanaugh will retire in June, and Miller will oversee finding his successor. University President Rick Muma also said he plans to hire a second internal auditor after Cavanaugh’s replacement is found. The compensation for the second position is already included in the budget model.  

“We’re actually struggling a little bit,” Miller said. “One of the requirements, as it’s currently advertised, is to either have CPA certification or a certified internal audit certification and so far we haven’t received any qualified applicants that meet those requirements. We’re going to give it just a little bit more time, and then we might look at reducing those requirements, in which we would have the expectation that they would receive an internal audit certification within a certain amount of time.” 

The second position will be selected after Cavanaugh’s position is filled. His successor will help choose the second internal auditor.