MORGANTOWN, W.Va. — Plans to cut WVU’s operating budget by $35 million next fiscal year will be the start of what university officials describe as a multi-year management plan.
WVU President Gordon Gee first talked about the cuts earlier this week in his state of the university address. The discussion was more more detailed Thursday during a WVU Campus Conversation attended by Gee and others.
Gee said declining enrollment, down about 10,000 students over the last decade, and possibly another 5,000 student enrollment drop in the coming five years. Plus, current economic factors and very few staff reductions over that period are the key driving factors.
“If we want to be financially healthy as a university and certainly financially healthy for the future, we need to correct our budget strategically now. Let me underscore that…now!” Gee said.
WVU Vice President of Strategic Initiatives Rob Alsop said university staff came together during the pandemic to meet the need and control costs but this crisis is much more complex and expected to continue for the foreseeable future.
Alsop said Fiscal Year 2024 will be a transition year.
“While the university was able to reduce expenses during the pandemic, those expense reductions are not sustainable in our post-pandemic world,” Alsop said. “Inflation is wreaking havoc on our payroll and supply expenses while utilities, insurance, hiring, and retaining talent are all more expensive.”
In recent years, revenue has not met expenses, not allowing for strategic investments in programs and people. Alsop said realigning the budget will provide opportunities to develop strategies to grow enrollment and enhance programs.
“Our goal is not only to have a balanced budget where, if one thing goes wrong, we’re not talking about cutting or being able to invest,” Alsop said. “We want to have the ability to consistently make new strategic investments of around $15 million a year in our people and our programs to keep WVU vibrant.”
Alsop said they are acting swiftly, but not immediately; cuts have to be made only after a critical analysis of revenue and expenses in order to maintain morale. Alsop said increases in tuition beyond rates of inflation are not planned, and they will continue to be focused on keeping a WVU degree affordable for families and students.
Also noted, freshman classes have steadily declined since the pandemic and a shallow pool of high school seniors electing to attend college are realities of current times. The fact that other peer institutions are battling over the same potential students tells leaders that future classes will continue to decline in numbers along with revenue.
“I think given the enrollment trends we are seeing and what is likely to develop at some level of magnitude, we are likely to be a smaller institution with fewer employees and fewer programs into the future,” Alsop said.
George Zimmerman, WVU assistant vice president of enrollment management, suggested WVU has the brand identity to grow the recruiting base. Most current WVU students come from within 250 miles of Morgantown and Zimmerman believes the radius can realistically be expanded.
“We have a very strong brand; we are competing on a national stage with the likes of Alabama, Kentucky, Penn State, Ohio State and Virginia Tech so we know that we can operate in these new markets and attract new students here,” Zimmerman said.