Divisions at YSU must cut spending
The university expects a similar revenue shortfall again next fiscal year.
By HAROLD GWIN
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- Youngstown State University division heads have been told to immediately cut spending between 1 percent and 1.5 percent this semester in an effort to keep the university's general fund budget balanced.
The university faces a revenue shortfall of about $1.2 million, and the cuts need to be implemented now to reduce spending before the end of the fiscal year June 30.
Lower-than-anticipated student enrollments both last fall and this spring are responsible for much of the shortage.
The university said enrollment income for fall 2005 was $620,000 below budgeted forecasts. Spring 2006 enrollment income is $250,000 less than expected.
The budget was predicated on a fall 2005 full-time equivalent (FTE) enrollment (total number of student hours divided by 15, which is considered a full-time semester load) of 10,415, but YSU ended up with an FTE of 10,332.
The spring 2006 FTE dropped to 9,660.
One FTE generates about $7,500 annually.
Adding to the fiscal problems is a $300,000 increase in utility costs beyond what had been projected.
Total cuts
An exact breakdown of cuts by division wasn't immediately available, but Jeff Taylor, director of budget planning and resource analysis, said the total will reach about $1.2 million.
It is a large number but an expense that is manageable in a $131 million general fund budget, Taylor said.
These are one-time budget reductions for this year and much of the savings will be realized simply by not filling some vacant positions on campus, a university statement said.
Dr. David C. Sweet, YSU president, asked division heads a year ago to identify potential budget cuts of 1 percent to 1.5 percent as the part of the university's planning for the fiscal year 2006 budget.
Those cuts were targeted in the event that fall 2005 enrollment was down or the university was hit with additional reductions in state appropriations. The cuts had been put on hold until now.
The future doesn't show any immediate financial improvement, and, even if a proposed 6 percent tuition increase (which would generate about $4.8 million in new revenue at current enrollment levels) is enacted for fiscal year 2007, YSU is looking at another revenue shortfall of about $1.2 million.
That could be influenced in a positive manner if YSU gets some of the additional $30 million the state has appropriated for higher education in fiscal year 2007. How that money will be allocated across the state hasn't been revealed.
Division heads are being asked to come up with a new round of budget cuts between 1 percent and 1.5 percent as the next budget is being prepared.
These won't be one-time temporary cuts, but permanent, base-budget reductions in spending, the university statement said.
The university thinks the budget gaps are manageable and will be implemented without major impact on students, the statement said.