OSHKOSH, WI (WTAQ-WLUK) — The University of Wisconsin-Oshkosh will layoff some workers, impose furloughs for others, and make other budget cuts to cope with a projected deficit of up to $18 million, Chancellor Andrew Leavitt announced Thursday.
In a message to the community, Leavitt outlined these issues:
“Our student outcomes continue to define our success. Graduates of our university are succeeding and improving their lives and the lives of those around them. We are helping meet workforce needs in our community and our region, and what we do in developing talent is more important than ever. Yet, we are facing a perfect storm that requires us to focus on our present fiduciary responsibilities, namely:
- Declining higher education participation rates in Wisconsin and an aging demographic in the state have trimmed enrollment.
- Declining state support, which has made us more reliant on tuition revenue, forcing greater dependence on enrollment.
- The increased reliance on tuition revenue, further exacerbated by a decade-long tuition freeze, which caused us to consume precious reserves.
- And, while enduring all of these impacts, rising costs in the post-pandemic, inflationary world.”
“These factors leave UWO in a challenging financial position that must be reversed. We project a structural deficit of up to $18 million in the current fiscal year. That challenge is unprecedented for the institution,” the message says. “Additionally, our UWO fund balances that can be applied to address our deficits are about to be depleted. UWO is expected to finish the coming fiscal year in the red even after we apply our remaining available reserves. It is no longer sustainable for us to operate without dramatic reduction in expenses.”
In response, the college is planning these steps:
- To start to alleviate our costs, intermittent furloughs will commence with September 2023 pay periods and will be planned to remain in effect through the June 2024 pay periods.
- We also need to examine our UWO workforce levels. Hard decisions are ahead. Layoffs and nonrenewals are unavoidable, with notifications coming later this fall semester.
- An additional GPR budget reduction in FY2024 is likely, while redirecting cost recovery balances to meet our fiscal year 2024 tuition target. We will review and possibly discontinue any self-supporting programs that do not recover costs. And we will review all centrally-funded commitments for FY2024 which may lead to hibernating some programs for a time.
“We know these are unprecedented changes. We wish we did not have to make these decisions. It will be extremely difficult, both personally and professionally. However, our charge to learners, their families and the broader community is of utmost importance. This way forward requires diligent work, difficult decisions and, despite the hardships ahead, selfless stewardship. I believe those we serve will see our actions as evidence of a commitment to a viable and durable UWO for decades to come,” Leavitt wrote.
The college plans to share more details at the Aug. 31 convocation, and as developments warrant.
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