Ohio U sees drop in tuition, room and board revenue
Ohio University Tuition and Fees Forecast.
As Ohio University enters its third semester impacted by the coronavirus pandemic, Chief Financial Officer Deb Shaffer has begun to put into numbers just how much money it cost Ohio U.
Ohio U had a drop in tuition as well as room and board revenue with fewer students on campuses for the 2020 fall and 2021 spring semesters, according to Shaffer’s financial presentation at Friday’s Board of Trustees meeting.
Shaffer forecasted Ohio U to generate $268.4 million in tuition revenue and $21.9 million in room and board revenue in fiscal year 2021. This is in contrast to fiscal year 2020 when the university generated $309.7 million in tuition revenue and $68.4 million in room and board revenue, according to the presentation.
While Shaffer did not include in the presentation how many students are enrolled overall at Ohio U, she did provide numbers for the number of students living on campus. Only 1,260 students lived on campus for the fall semester in 2020 and 3,200 are forecasted to be living on campus in the spring, according to the presentation.
Shaffer said the university lost a significant amount of room and board revenue in spring semester in 2020, too, as students were sent home from campus early due to the pandemic.
Despite the drop in tuition revenue, Shaffer said Ohio U did not increase tuition rates amid the coronavirus pandemic due to the financial impact of the pandemic on students.
The board discussed potential ways to increase money generated through room and board, including privatizing dorm use, creating incentives for more students to stay on campus and hosting more conferences in Athens.
Shaffer also spoke about the impact of the coronavirus pandemic directly on Ohio U’s finances.
The forecasted expenses for fiscal year 2021 show greater spending during spring semester, such as $12.1 million spent on testing and contact tracing, which is $7.5 million more than the university spent in fall semester.
As Ohio U President Duane Nellis mentioned in his closing remarks, the university has partnered with Vault Health for increased testing for the coronavirus during spring semester. Ohio U plans to test all residential students once a week and all off campus students once every two weeks.
Shaffer also presented the amount of money saved due to cuts to faculty, administration, and staff positions and pay.
Reductions made to the Ohio U administration are projected to save $22.1 million for fiscal years 2021 and 2022. The voluntary separation or retirement agreements made with faculty are projected to save $10.4 million in fiscal year 2021 and $13.6 million in fiscal year 2022.
She said the university is aiming to return to $65 million in reserve spending to minimize deficit spending. However, she said the university would not likely hit the target.
While the university is projected to save $12.6 million through faculty furloughs in fiscal year 2021, Provost Elizabeth Sayrs said faculty are in a difficult position due to the increased workload of formatting classes to accommodate the coronavirus pandemic, with less pay.
“Actual take home pay is eroding on top of the furlough. These are really serious issues,” Sayrs said. “It’s not just about remote, but it’s about flex time. It’s about autonomy. It’s about space to manage your life during this time, especially during the pandemic.”
“But it is not a sustainable trajectory if we are going to retain the staff and faculty who make the institution what it is,” Sayrs continued.