To: Faculty and Staff
From: Thomas L. Keon, Chancellor
Date: February 25, 2019
RE: PNW Budget Impact for remainder of FY 19
For the second consecutive year, Purdue Northwest began the 2018-19 academic year with improved retention rates and full-time student populations. However, fall 2018 enrollment was 6.1 percent lower than budgeted. Furthermore, enrollment has declined an additional 1.1 percent, compared with the projections on which our general fund budget was based, from fall 2018 to spring 2019.
The general fund budget is projected to fall short $1.4 million over the course of the current fiscal year as a result of the fall enrollment decline. Vice Chancellor for Finance and Administration Steve Turner and his staff have been able to find the initial $1.4 million in savings through such measures as pulling back the tuition contingency fund, reducing bank fees, reducing contract service repairs, and reducing property insurance and utility costs.
Budget impact on faculty, staff, and students
Steps are underway to adjust to the additional shortfall of $1 million now impacting the spring semester. Each of the division units are being asked to reduce their recurring costs proportional to their reliance on the general fund. These changes are expected to be implemented in spring semester 2019.
|Divisional Unit||Recurring Funding Base||Percent of Funding Base||Revenue Shortfall|
|Enrollment Management and Student Affairs||$9,991,992||9.53%||$95,313|
|Finance and Administration||$17,492,104||16.69%||$166,857|
|Total General Fund Base||$104,832,919||100.00%||$1,000,000|
The leadership of each division will determine how to best approach these reductions. Measures may include:
- Reduction of supplies and equipment (S&E) budgets
- Elimination of vacant positions
- A very limited reduction in force of current positions
In addition, we are seeking approval from the Treasurer of Purdue University to offer a targeted Early Retirement Incentive Program (ERIP) for faculty in some academic units.
Purdue Northwest is taking measures to ensure that we continue to stay fiscally solvent. These steps are evidence of our continued focus to make adjustments that are responsible.