The UA can expect a $250 million drop in revenue along with a significant drop in new enrollment of both in-state and out-of-state students, according to UA President Robert C. Robbins.
Robbins delivered the grim news via an April 29 email to faculty and staff.
The UA is predicting:
• $250 million loss in revenue through June 2021;
• Auxiliary income loss of $58.2 million in revenue, including Intercollegiate Athletics;
• A decrease in philanthropic gifts and investment income from cash on hand, projected to result in a $54.8 million loss in revenue.
• A decrease of 11% in new in-state and 19% in new out-of-state undergraduate and graduate student enrollments, equivalent to an $18.7 million loss in revenue. Returning graduate student losses are projected to be 4% for in-state and out-of-state students, equivalent to a $1.6 million loss in tuition revenue.
• A decrease in research activity is projected to result in a $16 million hit to Facilities & Administrative Expense Recovery.
• Reduction in activities associated with departmental sales and service, summer programs, camps, and conferences is projected to result in a $14.1 million loss in revenue.
The UA has already seen an estimated $7.1 million in new expenses related to the COVID-19 outbreak and Robbins anticipates significant investments in fiscal year 2021 for testing, tracing, and isolation.
“We are not alone in these challenges,” Robbins wrote in his email. “Colleges and universities across the nation are facing similarly difficult circumstances, including large drops in tuition revenue, and many are taking major steps in response. Together, we can—and we will—overcome these challenges and flourish as a world-class institution of higher education and research. Together, our compassion, our adaptability and our determination will propel us forward.”
This article appears in Apr 23-29, 2020.
Let me take a wild guess how they will make up for it: First, raise tuition for in-state students. Second, give a tax break to the rich, because that will…”trickle down” to the poor, who can then afford the raised tuition. Third, when they find out that the poor were pissed on, and cannot actually afford the tuition, they will raise the tuition again, because…”Drop in revenue!” Fourth, will built new class buildings, but mostly high tech dorms – for the out-of-state rich kids, which get subsidized by the state, and all the money raised from the rich alumni, goes to the football and basketball programs. Fifth, they will give a raise to the university president for…you know…”Because! Look how much more classroom and dorm space we have!” – even though there are exactly as many students now as back in the ’80’s when I went to school…and tuition was 1/20th of what is now.
I’m sorry, did I say something that did not happen after the ’08 “drop in revenue”?!?
Skills are becoming more important that classroom “sponging.” This country is getting ready for a manufacturing boom as we punish China a nd our past leaders that made us so vulnerable for this catastrophe. If you have any business ideas now is the time to get to work.
Spend $100,000.00 on college, or make $1,000,000.00 before you turn 30?
Choose wisely because you might not get an opportunity like this ever again in your lifetime.
Let me take a wild guess how they will make up for it: First, raise tuition for in-state students. Second, give a tax break to the rich, because that will…”trickle down” to the poor, who can then afford the raised tuition. Third, when they find out that the poor were pissed on, and cannot actually afford the tuition, they will raise the tuition again, because…”Drop in revenue!” Fourth, will built new class buildings, but mostly high tech dorms – for the out-of-state rich kids, which get subsidized by the state, and all the money raised from the rich alumni, goes to the football and basketball programs. Fifth, they will give a raise to the university president for…you know…”Because! Look how much more classroom and dorm space we have!” – even though there are exactly as many students now as back in the ’80’s when I went to school…and tuition was 1/20th of what is now.
I’m sorry, did I say something that did not happen after the ’08 “drop in revenue”?!?
It has nothing to do with Covid. When one examines the cash flow statements the answer is right there. An additional $155 M was spent on salaries and $85 M on payments to suppliers over the period from 2017 to 2019 while tuition and other revenue declined. The administration has been making up the difference through one time investment sales in order to make the university’s net position seem solid. It’s just basic accounting. No magic. No subjectivity.
ASU, on-the-other-hand, has seen a $164 M revenue increase and a $188 M salary increase over the same period so that is probably a big reason why they have not announced furloughs yet.
Most of the salary increase has gone to the upper levels and they paid for it out of money that is not part of a consistent revenue stream. Now, with the market down, and tuition revenue down, they are stuck. It’s not illegal, but it is arguably institutionalized corruption.
Don’t you just love how our institutions of higher learning hide the truth and the distract you with obvious lies? Always getting full abuse of us during a supposed crisis. Next they will ask for a bailout.
Sell some of your real estate that we bought you.