Green outlines cuts as revenue sinks

The University of Idaho is set to lose more than $7 million in revenue by the end of the month because of the COVID-19 pandemic.

UI President Scott Green told the Idaho State Board of Education on Wednesday that lost revenue could grow to more than $15 million, depending on what happens this fall.

“While COVID has proven we can educate our students remotely, doing so will still have an impact on our budget situation,” Green said during his annual report to the board.

The university lost revenue in areas like housing, dining and parking, as well as from its summer programs after coronavirus-related closures.

The school is only expected to receive $3.5 million in federal support to help mitigate lost revenue.

Green said UI greatly reduced its general education budget deficit, which was on track to be eliminated by fiscal year 2022, but the pandemic and the latest round of financial holdbacks from the state will lead to more cuts.

The 2 percent base reduction imposed by the state will become a permanent decrease to the budget, made possible in part by a reduction in staffing numbers, Green said.

A 5 percent holdback for fiscal year 2021, which starts July 1, will be addressed through mandatory furloughs.

Green said 112 people at UI will leave the institution this month after participating in voluntary separation and optional retirement programs.

“Additional faculty and staff will also be leaving as a result of nonrenewals recently executed and position eliminations,” he said.

The administration evaluated all of the 388 programs it offers to students through a comprehensive program prioritization process.

On Wednesday, the state board approved the discontinuance of UI’s materials science and metallurgical engineering program, a move that will result in a cost savings of more than $800,000. The 23 undergraduate students and 12 graduate students enrolled in the program will have three years to complete their coursework before the closure.

UI also combined the following departments in cost-saving moves:

Geology and geography.

The departments of statistical science and mathematics.

The food science and animal and veterinary science programs.

The chemical engineering and biological engineering departments.

“Other changes include eliminating some master degree options, and we’re also reorganizing certain programs, like moving management information systems into the department of business and reorganizing programs within the school of family and consumer sciences,” Green said. “In addition, individual programs and emphases within the school of music will be reviewed, and in a consolidation plan, eliminated.”

Enrollment numbers may also present further budget challenges. Green said a recent survey showed 3 percent of students may not return this fall because of financial issues associated with the pandemic.

“Our application pool is running 16 percent above this time last year, and admissions are up 13 percent over last year. In a normal year, that would lead to healthy increases in enrollment, but like many of our peers, our yield on current admissions is down from this time last year,” Green said.

He said UI is working on plans that include in-person instruction this fall. Faculty members are working on numerous models for course delivery, including a hybrid model that will allow them to be taught face-to-face and “in real time” online.

The state board unanimously approved UI’s proposed operating budget for fiscal year 2021, which includes an over $14 million reduction from the current fiscal year. The decrease was primarily driven by estimated tuition and fee revenue, according to information provided to the board.

The budget, like most of the higher education ones approved on Wednesday, does not include the latest 5 percent holdback.

The university already had reduced its base budget by $22 million before the start of the pandemic.

Several board members applauded Green for the work he’s done during his time as UI’s president to bring spending under control.

Before his arrival last summer, the university burned through its reserves after back-to-back years of $20 million losses.

“Based on the presentation and the serious approach that President Green has had in his 11 months, if you didn’t know better, you would think he was a well-seasoned president,” Board President Debbie Critchfield said. “On behalf of the board, I want to extend that appreciation and respect for all that you’ve done in a very short period of time and in a very challenging environment.”

In other board news:

UI received approval to create an online master of arts program in teaching in secondary education. The program will help address Idaho’s teacher shortage.

UI received approval to spend $780,000 for the planning and design phase of its Idaho Center for Plant and Soil Health in Parma. The new building, projected to cost $7 million in all, will replace an “aging and inadequate facility.” Funding for the project will include $3 million from the state’s Permanent Building Fund, $3 million in donations and $1 million from the College of Agricultural and Life Sciences.

UI received approval to sell the former Caine Center building and about 13 acres of land in Caldwell for $800,000. The school previously sold 27 acres of the property associated with the center about one year ago for $540,000.

The board approved three-year contract extensions for Lewis-Clark State College President Cynthia Pemberton and Idaho State University President Kevin Satterlee. Neither president will receive a pay increase this year.

The board agreed to request $34 million from the federal coronavirus relief bill to help close the “digital divide” in Idaho’s school and to improve blended learning approaches, which include both in-person and online or distance learning instruction. The request will be submitted to Gov. Brad Little’s Coronavirus Financial Advisory Committee. If approved by the committee, $30 million would be used to purchase devices for students and improve internet connectivity across the state, while the remaining $4 million would be used to enable students in remote areas to take college classes online.

Justyna Tomtas may be contacted at jtomtas@lmtribune.com or (208) 848-2294. Follow her on Twitter @jtomtas.