More on the economic implosion at the University of Idaho.
I remind you of the OpEd I wrote about this in September (College Degrees and the Uneducation of America).
This should have been dealt with seven years ago when enrollment started dropping. Instead, UI administrators put their heads in the sand and pretended it would get better.
More cuts on the horizon as tuition revenue is estimated to drop $8 million by fiscal year 2022
The University of Idaho anticipates an additional $8 million in budget cuts over the next two years, as the university’s revenue shortfall is expected to climb to $22 million by fiscal year 2022.
The cuts will be in addition to $14 million in budget reductions UI imposed this year, which will become permanent.
The increased deficit is pinpointed to an anticipated decline in tuition revenue because of UI’s student mix and current enrollment trends. On Wednesday, UI President Scott Green issued a memo detailing the university’s budget challenges.
“The bottom line is: we have been living beyond our means, and we don’t have enough resources in reserve,” Green said in the memo. “As you know from managing your own personal finances, if you’ve got more money going out than is coming in, you’ve got two choices: increase revenue or reduce expenses. The same is true for U of I.”
With what UI has in the past called “dangerously low reserves,” and no increases expected in the two main revenue sources that make up the general education budget, the only remaining option is further cuts.
Possible budget reductions could include layoffs, not renewing contracts, salary reductions, furloughs and not filling vacant positions.
Other options outlined in the memo include:
- Elimination of academic programs.
- Centralizing services across the university.
- Early retirement and voluntary separation incentives.
- Organizational restructuring.
- Outsourcing/contracting of some services.