Low enrollment spurs $7 million in budget cuts

According to Bradley University President Joanne Glasser, the Class of 2018’s academic accomplishments are some of the highest of any Bradley incoming class so far. Despite their achievements, enrollment numbers have fallen below the baseline, spurring $7 million in budget cuts.

Glasser sent an email to university faculty and staff June 3 reporting this drop in numbers and outlining a plan of action for budget cuts.

“The size of this class presents a more than $2 million negative financial effect on our operating margins, requiring that we adjust our expenses to present a balanced budget to the Board of Trustees at their July meeting,” Glasser stated. “Furthermore, we realize that to provide opportunities for campus investment in our programs, faculty and staff and to provide sustainable positive operating margins, we need to make a strategic reduction in our cost structure approaching 5 percent (an amount exceeding $5 million).”

Due to the $7 million budget cut, Glasser established three presidential advisory groups to investigate university needs and resources in the areas of finances and budgeting, enrollment management, branding and marketing and program review and delivery.

These three advisory groups met during the summer to organize strategic plans for the present and coming years.

Glasser also stated that the line at which enrollment numbers should be set must be lowered due to a consistent inability to meet that needed number.

“Unfortunately, we believe that our anticipated 2014-15 enrollment (which is similar to two of the last three years) represents a new enrollment baseline; a smaller baseline creating declines in revenue that future increases in tuition will not fully offset,” Glasser stated. “Our planning incorporates these assumptions.”

Vice President Enrollment Manager Paul Schroeder, Associate Vice President of Marketing and Publications Susan Andrews, Dean of Slane College of Communication and Fine Arts Jeffrey Huberman and Associate Vice President of Enrollment Management Justin Ball worked on recruitment and university branding with the enrollment management advisory group.

Glasser stated that “demographics clearly indicate [Bradley’s] past is not [Bradley’s] future, and the status quo is not acceptable” for student recruitment.

This drop in Bradley’s enrollment is not unusual amongst universities. The spring 2014 publication of the National Student Clearinghouse Research Center reported while overall college enrollment is down only 0.8 percent, four-year private universities have taken the largest hit with a 4.9 percent decrease in enrollment.

Beyond enrollment management, the financial advisory group sought to review salary structures, financial processes and best budget practices.

Vice President for Business Affairs Gary Anna said he believes these advisory committees are of great benefit to the university’s future.

“We’re not asking anyone to do our jobs for us, but rather asking for some broadened perspectives and viewpoints that can help make the university better,” Anna said. “As I characterize the finance and budget committee, it’s looking at the processes and looking at the stability of our budgetary system and how well that’s being communicated and how well people are operating.”

Anna said the collective efforts of all of the academic departments were within their budgets for last year.

The finance and budget committee is reviewing programs across campus and assessing interest levels to better align resources with priorities according to Anna.

Additional efforts to balance the budget include adjustments in various fees such as parking permits and engineering lab fees. Anna said the idea behind this is that students should pay for the resources they personally use, rather than charging the entire student body or having the university assume the costs.

Provost and Vice President for Academic Affairs David Glassman echoed Anna by reassuring students that these budget cuts will not affect academic programs or facilities, especially in facility renovations.

“In the library, we’ve been making improvements every single year, and we just did some more this past year with some of the chairs and tables in the front section,” he said. “During the course of this year we’re going to be getting about 72 or so new chairs for all around.”

Glassman said the overhaul remodeling of the library has not been cancelled, but rather delayed due to donation resourcing.

“Improvements are taking place all the time, and we’ll continue to do so,” Glassman said.

Glassman and Anna both said no hiring freezes have been put in place.

