In an effort to lay a solid foundation for the future and position our institution for growth, the University must align its expenses with its expected revenues for the upcoming fiscal year. Our financial goal is to protect our mission as a student-centered research university and to invest in areas aligned with the É«É«Ñо¿Ëù 2030 plan, while reducing other activities.
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The University’s approximately $100M operating budget needs to be reduced by 15% to about $85M for the 2025 fiscal year, which begins July 1, 2024.
The University has experienced several consecutive years of enrollment declines. Tuition and fees make up most of our operating fund revenues, so the drop in enrollment has real consequences for the University’s financial situation. Unlike in years’ past, we are not able to rely upon cash reserves or auxiliary-generated funds to fill the gap between revenues and expenses. Federal COVID dollars (otherwise known as HEERF funds), which helped bridge the gap over the past few years, are no longer available. We have to right-size our budget now to match our current enrollment.
Even though our student enrollment is much smaller than it was two decades ago, we have the same amount of buildings. Some of those buildings need major repairs. To ensure that our employees and students all have reliably comfortable spaces, it is advisable to reduce the number of buildings we occupy. This will help the University capture operational cost savings and relocate our people into buildings where we plan to invest and upgrade.
In consultation with Facility Services, the Space Utilization Committee has been engaged in this work. The committee weighed factors including the age and state of buildings, urgent need for repairs, number of affected personnel, and quantity of specialized spaces that would be difficult to replicate elsewhere on campus. The committee provided a recommendation to decommission Milneburg Hall and that recommendation was approved by a majority of the Executive Cabinet. The President has directed the Space Utilization Committee to work on a plan of action that will relocate occupants during the fall semester with the goal of vacating the building by the end of 2024.
The Athletic Department, which has had higher expenditures in recent years, will reduce its operating expenses by 25% for the 2025 fiscal year.
Yes, the University has just finished work on a revised strategic plan called É«É«Ñо¿Ëù 2030. This plan lays out a revised mission, a vision, core values, areas of focus, priorities and tactics. We will add relevant metrics during this summer. This plan articulates what is important to É«É«Ñо¿Ëù and what we will focus on in the years to come.
While some of these reductions may be permanent, others will reflect temporary but necessary changes as we take steps to stabilize and then grow our enrollments. We also must take every opportunity to ensure that we are delivering our curricula as efficiently as possible, removing barriers and streamlining requirements while also offering student-centered schedules.
Proposed budget reductions were submitted to deans and vice presidents by Friday, May 24. Deans and vice presidents submitted a comprehensive budget plan for the units or departments in their areas by May 31. A small working group including the President, Provost, Vice President for Finance and Administration, and internal budget experts will review the budgets and work collaboratively to develop a draft of the total university budget. Our goal is to have the total budget completely drafted by June 24.
