The University of Idaho Experiences Revenue Loss Due to Enrollment Drop

By Nicole Hindberg on January 1, 2019

The University of Idaho has experienced much revenue loss in recent years due to an enrollment rate drop. Earlier this month, it was determined that the University of Idaho experienced a $21 million loss. At the State Board of Education meeting this month, it was determined that the university fell below the Idaho State Board of Education’s target reserve rates of five percent.

Boise State University was the other public university in Idaho that did not meet the reserve target rate according to Carson Howell, one of the financial officers for the State Board of Education. The University of Idaho fell to a negative 1.6 percent reserve rate and Boise State University fell to a negative 3.75 percent reserve rate. Idaho State University and Lewis-Clark State University both met the target reserve rates.

These reserves are meant to be used to pay budget reductions or enrollment fluctuations, both of which were experienced by the University of Idaho and Boise State University.

via Wikimedia Commons

The University of Idaho Vice President of Finance and Administration Brian Foisy confirmed this at the State Board of Education meeting on December 20, 2018. In the fall of 2018, enrollment rate fell 2.6 percent. Foisy mentioned that the University of Idaho is putting together a new budget in order to compensate for these issues. Calling it a “one-time base budget reduction” of four million dollars effective July 1 of the fiscal year. After this new budget is implemented, another four million dollars will be cut from the budget over the next two years. The goal for them is to “curtail that $21 million loss impact over time.”

The University of Idaho Faculty Senate discussed this issue in late October. Foisy mentioned that these issues needed to be addressed. He stated that the University needs to “changes its spending practices” in order to adapt to these changes in enrollment. He then moved on and discussed that they need to move toward a “strategic hiring plan” in which some positions will be adjusted and expanded to fill the vacant positions in order to cut some of the salary budgets for the University. No specifics have been discussed at this time about if any faculty will be laid off as a result of this change.

The University of Idaho’s President Chuck Staben has informed students multiple times through emails, but no action has been taken until this week when Foisy suggested putting together the revised budget.

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