SRU turns its budget around
SLIPPERY ROCK — At this time last year, finances at Slippery Rock University were looking pretty scary.
The university was projected to have a $5.2 million deficit in its $114.5 million budget for the 2013-14 fiscal year.
However, President Cheryl Norton said Thursday that SRU finished the 2013-14 fiscal year $262,135 in the black.
“I'm so happy last year is in the rearview mirror,” Norton told nearly 200 people at her State of the University Address.
Norton said no reserves were used to fund operations, but some were used for health and safety maintenance.
She said the university turned around its finances by increasing online programs, increasing enrollment and lowering personnel costs through attrition.
At this time last year, Norton was predicting a $10.1 million deficit for the 2014-15 fiscal year.
However, she now predicts SRU will increase revenue by $5.2 million and decrease expenditures by $4.9 million, eliminating the deficit. The budget has not been finalized, and SRU's council of trustees will approve it later.
She said as long as retirements occur as predicted SRU will have a balanced budget with no layoffs and no retrenchment letters. Six faculty positions were modified and another faculty member apparently voluntarily ended her employment.
“Job well done, but job not over,” Norton said.
For this year, Norton said SRU will face its largest costs with its collective bargaining agreements. It will face a 4.25 percent increase in health care costs, which she said was less than expected, but pension plan costs will go up 26 percent to 32 percent. Operating costs will go up 2 percent.
On the revenue side, SRU is facing a flat state appropriation. For 2013-14, SRU received about $32 million from the state.
“This is the fourth year of flat state appropriations,” Norton said.
She noted that because costs have increased, this effectively means SRU has been getting less money rather than the same amount.
“We're really down roughly 10 (percent) to 12 percent,” Norton said.
However, all schools in the State System of Higher Education were granted a 3 percent tuition increase for this year. Norton said this was critical as it saved 37 jobs at SRU.
Additionally, the technology fee for students was increased by 14.7 percent, there was a 12.3 percent increase in the freshman class size, a 29 percent increase in the international student body and a 21 percent increase in the graduate student body.
On the other hand, transfer students decreased by 2.25 percent this year. Norton noted that community colleges, where most transfer students come from, have fewer high school students than in years past.
Norton said SRU needs to look to bring in more international and transfer students to keep enrollment high.
“That is an unlimited group of people,” Norton said.
She said SRU is one of three state system schools to have increased enrollment this year. She said there are 2,200 new freshmen and transfer students on campus, making it the largest freshman class in SRU history.
