University of Akron President Matt Wilson on Monday revealed the framework of a two-year plan to get back on track financially.
The plan includes offering voluntary universitywide buyouts, remodeling the way scholarships are given out and strengthening recruiting efforts, which also will target international students.
Wilson said the initiatives are expected to save about $25 million in their first year.
The ideas came out of discussions with the board of trustees and UA academic, administrative and union leaders after reviewing the results of a three-month study on UA’s finances from an independent accounting firm.
“We had an objective third party come in and look at where we were and where we are currently to get a base, so we could make some decisions going forward on how to address the downturn in enrollment,” Wilson said. “The initiatives in the plan will meet our challenges and can best be summarized as stabilize, invest and grow.”
An anonymous donor paid for the financial assessment from the management and accounting firm Ernst and Young.
The study showed that five years ago, UA enrollment was at 29,699 and there has been a gradual decrease in enrollment, which dropped to 23,152 this school year.
“The decline was accelerated by what I’m calling a period of turbulence. Last year we cut $20 million in expenses out of the budget to adjust to make sure we were in line with our student body and reflect their incoming revenue,” Wilson said. “This year we are operating on a deficit, which is being covered by an $18 million withdrawal from our savings.”
UA also refinanced $450 million in debt, saving about $7 million.
On a positive note, he said, new applications for the 2017-18 school year are up 15 percent over last year at this time. He acknowledged it may be premature to draw conclusions, but said things seem to be going in the right direction.
Salaries, buyouts
Since Wilson took over as interim president in July and president last month, he has spent most of his time trying to improve the atmosphere and mood on campus and stepping up recruiting efforts by going out to high schools to promote UA. The university also has been frugal in hiring, filling only critical positions.
He said there have been several conservative contracts where faculty members did not accept raises when promoted. Wilson himself took a more modest contract with fewer frills than his predecessors’.
Wilson accepted a salary of $370,000, compared to the average $430,000 pay for university presidents, according to the Chronicle of Higher Education.
“We are not looking at personnel cuts or involuntary layoffs or program cuts with this plan,” Wilson said. “We are looking at voluntary buyout packages and are in the process of putting together the details.”
He anticipates the details of the buyouts will be available by early next year. The goal is to save $8 million in the next budget year with the buyouts.
Other proposals include a cutback on travel expenses and having more junior faculty members traveling rather than senior faculty members. He has also canceled two of his travel dates, one to Singapore and the other to San Francisco.
Scholarship system
Wilson also wants to flip the scholarship system so that it not only attracts students, but also helps retain them and facilitate their graduation.
He said his plan is similar to what he did when he headed UA’s law school, locking in scholarships with some wiggle room or benchmarks as students move along, so there’s less pressure when they reach their junior and senior years.
It would also make scholarships available for juniors and seniors who did not start college with a scholarship, based on performance.
“We have to do a better job in guiding and directing how to get our kids to graduate,” Wilson said.
Under the plan, there will be a greater push on recruitment initiatives, including a focus on international students. There is talk of having a dorm or portion of a dorm for international students to enhance the global experience.
Other initiatives
Evening and weekend classes as well as online or distance learning classes are also being considered to offer more flexibility for students.
In addition, the graduate assistantship program will be updated, with an emphasis on graduate assistants in teaching and research positions.
Ernst and Young also offered several ideas on how to maximize the efficiency of the systems at the university on the utility side and IT side of the ledger.
To review the report online go to: goo.gl/odHaXI. A video featuring Wilson explaining the plan is available at www.uakron.edu/budget.
Marilyn Miller can be reached at 330-996-3098 or mmiller@thebeaconjournal.com.