ASU System approves $314 million budget, raising tuition

The Arkansas State University System Board of Trustees has approved a combined $314.4 million operating budget, as well as tuition and fees, for 2025-2026 at its seven institutions.

ASU System President Brendan Kelly said the budget is an effort to deploy every dollar to create value for students. The overall system budget is 5.3% higher than last year and reflects investments in retaining and recruiting employees while also addressing increased technology and deferred maintenance costs. Campuses kept tuition and fee increases minimal and remain competitive with peers across the state, he added.

“With flat state funding for higher education, we don’t have many revenue options to remain competitive and take care of ongoing campus needs,” Kelly said. “But rest assured we are actively looking for alternative, diversified revenue streams to help us minimize the financial investment requires of students and their families. Our chancellors and their teams continue to work hard to manage costs of delivering high-quality higher education experiences for our students.”

The Board of Trustees approved the following FY2026 budget and tuition plans for each ASU System institution:

Arkansas State University – a 6.9% increase in operating budget from $221.2 million to $236.4 million. Combined tuition and fees will increase 3.3% to $10,430 annually.

Henderson State University – a 5% increase in operating budget from $52.2 million to $54.8 million. Combined tuition and fees will increase 2.5% to $10,560 annually.

ASU-Beebe – a 1.2% increase in operating budget from $29.8 million to $30.1 million. Combined tuition and fees will increase 2.9% to $4,290 annually.

ASU-Mountain Home – a 1.8% increase in operating budget from $12 million to $12.2 million. Combined tuition and fees will increase 1.4% to $4,200 annually.

ASU-Newport – a 3.7% increase in operating budget from $19.1 million to $19.8 million. Combined tuition and fees will increase 3.6% to $4,290 annually.

ASU Mid-South in West Memphis – a 2.3% decrease in operating budget from $13.9 million to $13.6 million. Combined tuition and fees will increase 1.9% to $4,770 annually.

ASU Three Rivers in Malvern – a 2.7% increase in operating budget from $10.1 million to $10.3 million. Combined tuition and fees will increase 5.1% to $4,970 annually.

Trustees approved $81.8 million in capital improvement and deferred maintenance projects across the seven system institutions, which have identified some $475 million in total deferred maintenance needs. The operating budget for the ASU System Office will be considered at a special board meeting prior to July 1.

Kelly noted that Henderson faculty and staff took a 20% pay reduction and 40% retirement benefits cut in 2019 and have not had any restoration of those cuts – nor any raises – since that time. Positive enrollment trends are encouraging, and he and Henderson Chancellor Trey Berry are hopeful about being able to do more for its employees.

Trustee Paul Rowton of Harrisburg said he was “very excited” about enrollment projection reports from the campuses for the fall semester.

Trustees received an update on A-State Campus Queretaro in Mexico from Ricardo Gonzales, president of ASUCQ, and Belinda Salazar, director general of ASUCQ.

Salazar explained the creation of Elisia Education Hub, which will serve as a higher education hub now featuring three different institutions on the same campus – A-State, New York Institute of Technology and Texas State University – with a broader selection of degree programs. All degrees are recognized in both the United States and Mexico. The NYIT College of Osteopathic Medicine also has a campus at A-State in Jonesboro.

The 280-acre Queretaro campus has 1,232 students and 80 faculty members, she said. With 17 degree programs, 66% of students graduate with a job. The campus has 303 students participating in athletics programs. Elisia is projecting 19% enrollment growth this fall and has a student retention rate of 91.7%.

ASU Three Rivers Chancellor Steve Rook updated trustees on construction of the new $8.5 million nursing building on the Malvern campus, which will open in January. ASU Three Rivers has also led the renovation of the historic Ritz Theatre in downtown Malvern with $5.5 million in grant funding from the Arkansas Natural and Cultural Resources Council and private contributions, and is in early construction phases for an additional $2.8 million workforce training facility.