The head of Western Illinois University said reductions in staff and other cost-saving measures have ensured the university has a longer runway to plan and make adjustments amid a budget deficit and declining enrollment.
The university announced the layoffs of 35 faculty members in early July. Another 89 employees -- including some tenured professors -- received layoff notices in August, though some of those don’t take effect until after the current school year.
Interim President Dr. Kristi Mindrup said one of her top priorities since taking office on April 1 has been to stabilize finances for now and the future.
She said “bold action” was needed to deal with depleting reserves, rising expenses, and declining enrollment.
“The same action that has also extended our cashflow, which was previously positioned to bring significant challenge sometime around now,” Mindrup told the Board of Trustees.
“What I mean specifically by that is on September 30th would have been the last day we could make payroll.”
Instead, she said, WIU avoided a catastrophe and is now on track to remedy its financial concerns in a sustainable way. She said “significant retirements” next year in combination with the layoffs that take effect at the end of the school year will help stabilize finances.
She praised the efforts of the university’s leadership team.
“These individuals stepped up to serve during an unenviable time to make a positive impact for our collective future,” Mindrup said.
She acknowledged not everyone agreed with the cost reduction decisions, but added, “I believe we share a mutual desire to continue to listen, inform, and participate in continuing to ensure that WIU thrives.”
Mindrup said that among other things, the administration will also evaluate the Macomb campus’ physical footprint with an eye toward deferred maintenance and operational efficiency.
Board Chairperson Carin Stutz said trustees and the university’s budget office have been ringing alarm bells for the past couple years.
“The previous administration had the facts – or I should say administrations had the facts – but lacked the courage to act in time,” Stutz said.
“Dr. Mindrup and her administration have walked into this tough assignment to right the course, and they did what was necessary to put the university on a path to success.”
Stutz said it’s been a challenging and emotional quarter in which difficult decisions had to be made for the long-term viability of WIU, and that hard work remains.
“We know that this is a work in progress,” Stutz said.
Ketra Roselieb, Vice President of Finance and Administration, said the cabinet has worked strategically during the past few months to implement short- and long-term cost saving measures to work toward a balanced budget and address cash flow concerns.
Roselieb said there has been significant progress, but still projected a shortfall of $14 million across all fund sources for the current fiscal year. That is down from earlier projections of a $22 million deficit.
She called the budget process challenging.
“It’s like walking up a hill when boulders just keep falling down,” Roselieb said.
Such boulders include additional expenses, such as unexpected maintenance projects, and the time and resources required during last month’s police stand-off near the Macomb campus.
Roselieb said they still have cash flow concerns, but added WIU is on a path forward and will continue to make adjustments. She said the tough decisions made this year will set up WIU to have its expenses line up with its true revenues.
“We cannot live in a vacuum where we think that enrollment is just going to increase and revenues are going to increase. We have to create a balanced budget and create a footprint that meets the needs of our students and our current size and body,” Roselieb said.
She said WIU could be helped if the state changes its funding formula for higher education – something that’s been discussed.
WIU would also benefit if the state’s Capital Development Board released funding for deferred maintenance projects, Roselieb said.
Currently, unexpected expenses such as new chillers for Horrabin Hall are being paid for out of the university’s budget.
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