A new university website—wsu.edu/fiscal-health—has been created to keep the community informed and involved in the system-wide effort to restore WSU’s fiscal health.
The website will provide regular updates about progress in the effort to reduce university expenditures and increase revenues. The site currently includes a summary of WSU’s current budget challenges as well as the communications chancellors, vice presidents, and deans sent to their respective units in October and November outlining initial plans to reduce spending.
Faculty, staff, and students are encouraged to use the online form on the site to share suggestions, ask questions, and voice concerns about the budget.
Initiative addresses a recent trend
The university has spent more than it has received in revenues for the past four years. The spending reflected a strategic effort to advance WSU’s mission by investing in several new initiatives, including expanded classroom space, the Elson S. Floyd College of Medicine, WSU Everett, new athletic facilities, and the new art museum, among other things.
The investments required the University to spend down its central reserves—which function much like a savings account—by more than $100 million the past four years. That reduced reserves from about $200 million in FY13 to slightly less than $100 million in FY17.
Last year, WSU spent $30 million more than it received in revenue.
“While the fiscal challenges are serious, they are not insurmountable,” said Joan King, associate vice president and chief university budget officer. “By carefully managing our revenues and expenditures during the next few years, we will restore WSU’s fiscal health.”
A 2.5 percent expenditure reduction, not a budget cut
In order to bring spending in line with revenues and to avoid reducing central reserves to very low levels, the University is implementing a multiyear plan to reduce spending and increase revenues.
For the current fiscal year, all areas of the University are reducing expenditures by 2.5 percent. Similar reductions in spending likely will be required for the next two years.
The goal is to reduce WSU’s annual deficit spending to $20 million this year, to $10 million the following year, and to balance revenues and expenditures in FY2020.
Efforts to implement new revenue-generating opportunities also will continue. The university already has partnered with the private firm INTO to increase the enrollment of international students and given the green light to offering new online degree programs.
Money saved will remain in units
The money each unit saves by reducing expenditures will remain within the unit. Once annual institutional revenues and expenditures are balanced, units will be able to invest their savings in new initiatives to advance WSU’’s teaching, research, and service mission, such as the Drive to 25.
Monthly communications are planned to keep the community informed about progress in the initiative to restore WSU’s fiscal health.