Salisbury University defends aid strategy as analysts flag declining need‑based support

Department of Legislative Services analyst Sarah Baker told the subcommittee that Salisbury University’s fiscal 2027 budget shows increases in applications and an improving entering class but growing concern about equity in institutional aid.

Baker said first‑time applications and fall undergraduate enrollment have risen recently, but second‑ and third‑year retention rates declined for pandemic‑affected cohorts and six‑year graduation rates have trended down. She noted that institutional aid rose to $17.9 million but the share directed to need‑based aid fell from 15.7% in 2020 to 10.3% in 2025, and she asked the president to explain why need‑based aid’s share declined even as Pell‑eligible enrollment rose.

Salisbury President Dr. Carolyn Ringer Lee said the apparent shift is driven largely by timing and recruitment: merit scholarships are awarded early in the admissions cycle to compete for high‑achieving applicants, while need‑based awards depend on federal data that arrive months later. She said Pell‑eligible first‑year enrollment increased by more than 5% and described initiatives such as a $1,000 "finish your flight" near‑completer award that has led many lapsed students to return or complete degrees.

DLS also raised concerns about reliance on auxiliary surpluses to cover education and general (ENG) deficits. Dr. Ringer Lee said an accounting reclassification reduced the apparent auxiliary surpluses and that the university is taking structural steps—vacancy controls, tightened travel and operations costs—to align ENG spending with revenues.

What happens next: The committee asked Salisbury to provide follow‑up data on how institutional aid is allocated and on retention and graduation trends for pandemic cohorts.