SLIPPERY ROCK — Slippery Rock University has a $4.6 million deficit heading into fiscal year 2020-21, and it is looking at increasing tuition and fees.

“What we're stepping through today is a project,” Molly Mercer, chief financial officer, said Thursday during a committee meeting concerning the 2020-21 budget. “It's going to change multiple times.”

Nothing was finalized Thursday.

The committee approved sending the matter to the board of trustees meeting Friday in Robert M. Smith Student Center Theatre.

Despite entering next year with a deficit, Mercer said the university is still on track for its 2019-20 budget at $143.56 million passed in September.

Expenses for 2020-21, which are subject to change, are projected at $149.51 million.Mercer said the tuition freeze imposed by the Pennsylvania State System of Higher Education last year and increases in personnel costs were key factors in the projected deficit.“We have collective bargaining increases and health care increases,” Mercer said. “We also have the uncertainty of appropriation.”Mercer said the university balanced its budget for the 2019-20 fiscal year despite the tuition freeze by reducing its contribution to the plant utilization budget by $2 million, which left it at a little over $3 million.The move was deemed by the administration as unsustainable in the long term.The plant budget is money set aside for planned projects and maintenance.The university plans to return the plant budget back to a little over $5 million, causing an immediate $2 million deficit to the overall 2020-21 fiscal year budget.

To combat the foreseen deficit, the finance committee reviewed and recommended a comprehensive pricing proposal for the board's consideration, which includes a 3.5 percent “sticker price” increase to tuition and fees.By sticker price, the university means to raise tuition across demographics, including both undergraduate and graduate.“We're trying to restore the plant, what was taken away. We're going to meet our contractual obligations. We're hedging against unknown costs,” said SRU President William Behre.In total, the proposed 3.5 percent tuition increase would produce $2.7 million in additional revenue.Some committee members, which included trustees, had issues with the tuition increase.Trustee Bob Taylor asked the committee to find the money elsewhere, including looking at closing programs no longer in use and hiring faculty more selectively.“I think the tuition increase should be the last option used,” said Taylor.Trustee Chairman Jeff Smith took issue with the money in the increase set aside for financial aid.“Personally, I don't believe in forced philanthropy and redistribution,” he said.Smith said if the board does move forward in bolstering its financial aid through a tuition increase, he would like to see transparency and identification as money coming from other students and their families. Trustee Bill McCarrier, who chairs the Finance Committee said this will not be the last time they need to look at raising tuition.“Inflation is always with us,” he said. “Inflation is always there, and we have to deal with that.”