Loyola projects budget shortfall for the 2013-2014 academic year
Loyola press release - July 10, 2013
Loyola University New Orleans is anticipating up to a $9.5 million budget shortfall due to lower-than-expected enrollment of first-year students for the 2013-2014 academic year. According to a letter sent yesterday to the university community from Loyola President Kevin Wm. Wildes, S.J., Ph.D., the university expects an incoming first-year class of approximately 600 to 625 students, short of its enrollment goal of 875 first-year students.
“Over the last century, Loyola has been successful in overcoming its fair share of challenges, and we will meet this new test with the same commitment to prevail,” Wildes said. “This university is not alone in facing reduced enrollment and budget cuts. We know that many other schools across the nation have confronted the same or similar issues recently, including higher education institutions here in New Orleans.”
Loyola administrators are currently developing strategies drawn from input from the entire university community to increase enrollment and balance the budget shortfall. Most of these strategies will be implemented throughout the next fiscal year, however, the most immediate of these will be a hiring freeze, which takes effect Aug. 1.
The university is also considering strategies such as voluntary retirement and severance packages, reducing some 37.5-hour positions to 30-hour positions, reducing some 12-month positions to 10-month positions, lowering employer-paid fringe benefits and taking an additional drawdown from the university endowment. A combination of some of those options to balance the budget will likely be implemented throughout the upcoming fiscal year.
A committee of university leaders has also been formed to guide and monitor enrollment management issues for the short- and long-term. This committee, chaired by Loyola Provost and Vice President for Academic Affairs Marc Manganaro, Ph.D., will work closely with the Office of Enrollment Management on issues such as pricing and setting enrollment and net revenue targets.
“Loyola is taking proactive steps and is diligently working to examine all options to balance our budget. We are calling on alumni and friends for their support as well. Together, the Loyola family will overcome this fiscal challenge and we will continue to provide a great academic experience in the Jesuit tradition for our students,” Wildes said.