Decisions on PNW Budget Measures for FY21

Because of the many collaborative efforts of our faculty and staff in preparing for the fall semester, Purdue Northwest is off to a safe and engaging start to the 2020-2021 academic year. While overall enrollment declined by 6.4 percent compared with fall 2019, fall-to-fall retention is at its highest level in our five years as PNW and some academic programs, including Nursing, Business and Engineering, saw increases in enrollment.  Thank you for all your hard work and dedication.

The enrollment decline met our pre-COVID projections, but we believe the pandemic adversely affected the ability of some students to enroll this fall.  The impact of the enrollment decline to PNW’s current fiscal year budget is approximately $2.6 million in tuition and fees. In addition to the enrollment decline, our state appropriation decreased by about $3.4 million.

The Senior Leadership Team requested input from the Faculty Senate Budget Committee, the University Budget Advisory Committee, and the Deans to determine the best way to make up this shortfall in the university’s budget. Of greatest concern to all are the wellbeing and morale of our faculty and staff.

Three options were presented: (1) graduated furloughs for all faculty and staff earning more than $45,500; (2) across the board temporary salary reductions for faculty and staff earning more than $45,500; and (3) keeping most open positions unfilled for FY 21.  All groups recommended keeping most open positions unfilled during FY21, thus saving about $2.3 million. We agreed with these recommendations.

PNW will cover the remaining budget gap by reducing expenses. Some of these previously announced measures include authorizing essential travel only; discontinuing the intercampus bus service and the van shuttle to the South Shore train station; restructuring the Office of Global Engagement; and, a further reduction in travel costs due to the GLIAC cancellation of fall sports.

Once again, we would like to express our sincere gratitude to every faculty and staff member for powering onward, together, as we build toward a stronger and well positioned university serving our students and our communities.

Chancellor Thomas L. Keon and the Senior Leadership Team