Dear Campus Community:

Hope everyone is well in these uncertain times and that your spring semester is off to a great start. Last week, in a meeting with the YSU Labor Management Council, we provided a detailed update on the university’s fiscal year 2021 operating budget. Today, I would like to share a brief overview of that report with the campus at large.

The FY 2021 budget was approved by the Board of Trustees last summer in the midst of great concern about COVID-19 and its impact on enrollment, state funding and operations across all of higher education. As you know, we had just made a monumental, mid-semester switch to remote, off-campus instructional delivery, and the financial prospects for the summer and fall semesters remained precarious. Our FY 2021 budget reflected that uncertainty, projecting a 20 percent drop in state funding and a 15 percent decrease in enrollment. As a result, YSU took action to reduce expenses, including staff furloughs, salary reductions and layoffs. 

Six months later, while we experienced decreases in both enrollment and state funding, our revenue losses were less than expected. So in December, the Board of Trustees approved a modified FY 2021 budget reflecting up-to-date enrollment and a new economic forecast from the state of Ohio. In turn, we discontinued staff furloughs and salary reductions that were implemented last summer.

While this revised budget outlook is some $13.6 million better than originally projected, this does not mean that we’re experiencing a $13.6 million increase in revenue year-over-year. In fact, even with this positive modification to our revenue forecast, we’re still projecting general fund revenue this year to be between $3.5 and $4 million lower than actual revenues last year, largely as the result of the 4.4% decline in student FTE enrollments we experienced this past fall semester.  And, as you know, uncertainty persists, including enrollment levels for the spring semester and beyond. It’s imperative we remain cautious as it relates to the university’s financial position. 

We also provided the Labor Management Council a report on the $16 million YSU has received in federal CARES Act funding. These funds have provided significant assistance in allowing YSU to continue safe, effective operations during the pandemic. We also updated the Council on additional federal relief monies that are expected to be allocated in the weeks and months ahead. It is important to note two factors about these federal relief dollars: first, the funding is restricted to pandemic-related relief only; and second, these funds are temporary and intended to get us through the current economic crisis.

We know there have been many questions regarding the budget, the modifications and the university’s financial status moving forward. I hope this memo addresses those questions. I invite you to visit our Budget Planning website, where you will find all budget materials and other resources. And, as always, if you have any questions, please feel free to contact me directly.

Thank you and go Penguins!

Neal McNally
Vice President for Finance & Business Operations