{"id":1840,"date":"2020-10-14T17:30:00","date_gmt":"2020-10-14T21:30:00","guid":{"rendered":"https:\/\/www.monmouth.edu\/president\/?p=1840"},"modified":"2020-10-27T09:55:30","modified_gmt":"2020-10-27T13:55:30","slug":"update-on-fiscal-realities","status":"publish","type":"post","link":"https:\/\/www.monmouth.edu\/president\/2020\/10\/14\/update-on-fiscal-realities\/","title":{"rendered":"Update on Fiscal Realities"},"content":{"rendered":"\n

Dear Colleagues:

For the past several months, I have shared my concerns about several national crises that are converging at once upon the Monmouth University community \u2013 namely, the shifting student demographic crisis, the COVID-19 public health crisis, and the racial justice crisis. All along, it has been our top priority to ensure the health, safety, and general welfare of all the constituents entrusted to our care. While the cumulative effect of the demographic concern and the global pandemic on the University\u2019s short- and long-term financial health is not yet fully known, we must turn our collective attention to the fiscal realities that these evolving crises are creating for higher education in general and Monmouth University in specific.

Fiscal Year 2020<\/strong>
From the outset of the pandemic, we promised to do our very best to get through Fiscal Year 2020 as safely as possible, and with as little disruption to employees\u2019 livelihoods as possible. We instituted a limited furlough program with the goal of preserving salary and wages \u2013 as well as medical benefits, retirement contributions, and vacation day accruals \u2013 for those employees identified for the furlough. And, thanks to the Federal CARES Act stimulus package, additional payments were made available to all furloughed employees. This kept almost all employees whole on their incomes, while simultaneously saving money for the University. At the conclusion of the furlough periods, we brought all employees back to work. For all other employees, we committed to paying full wages and benefits, even for those employees whose work was nearly impossible to accomplish in a remote environment. To show our gratitude for our employees\u2019 continued dedication to Monmouth, we provided five additional paid days off in May, June, and July. And, effective July 1, 2020, we offered a 2.75% salary increase to all full-time employees, <\/strong>with the exception of Cabinet members, who declined their individual increases this year. I am very proud of the institutional support that we have shown our valued employees.

Fiscal Year 2021<\/strong>
As the pandemic unfolded, we expressed real concerns about the likely adverse impact on summer and fall enrollments at Monmouth. Now that our fall enrollment numbers have been finalized, we have a better understanding of the negative impact to our operational budget. While we have successfully recruited the best class ever to Monmouth this fall \u2013 both in terms of academic preparedness and\u00a0with\u00a0regard to racial and ethnic diversity \u2013 our numbers are behind our budgeted targets in each of our\u00a0enrollment\u00a0categories: first-year, returning, transfer, and graduate\u00a0students. In addition, we are experiencing steep revenue\u00a0shortfalls\u00a0in housing contracts, meal plans, ticket sales, and fundraising. \u00a0Assuming we are able to continue operating with our modified reopening for the entire academic year, we confront a $15 million budget deficit. If any of our operating assumptions change (e.g., we have to pivot to remote instruction for an extended period of time and send all residential students home), then our deficit will worsen. This deficit is a stark reality of the current situation that we must now face. \u00a0

As we make final adjustments to the\u00a0Fiscal Year 2021\u00a0budget in preparation for the Board of Trustees meeting later this month, I wish to share with you the following important updates aimed at addressing the current fiscal imbalance.<\/p>\n\n\n\n