Classroom | Photo by Grace Ramsdell | Edited by Kayli Thompson | The Wright State Guardian
Wright State University (WSU) projects a positive financial outlook as the university increases revenue from international enrollment and decreases spending through downsizing efforts.
WSU’s financial outlook
WSU’s Board of Trustees finance, audit, governance and compliance committee met on Feb.17 to discuss the university’s financial position.
In fall 2021, WSU was anticipating having to use $10.9 million in reserves for fiscal year (FY) 2022, according to the September financial performance report. The financial projections have since changed.
Executive vice president and chief operating officer, Gregory Sample, joined the committee in enthusiastically reporting a positive financial outlook for the university.
“What you’re about to receive today is extremely good news. In short, that projected 10 million deficit is now projected to be a 10 million surplus,” Sample said.
Sample went on to explain how this increase in revenue was due in part to an increase in international student enrollment and the fact that the university is not partaking in its full operations due to COVID-19.
This surplus is projected for FY2022, which ends in June.
Enrollment concerns
Despite this, the financial performance report presented at the meeting includes a cautionary note as tuition and fee revenues, the university’s main source of revenue, for the current fiscal year is still $3.3 million lower than actual FY21 numbers.
This is due in part to a decline in domestic undergraduate and graduate enrollments, according to the report.
Savings from ‘Wright Sizing’
Contributing to the positive financial outlook is a $10.6 million reduction in compensation, according to the report. This reduction is due to labor markets and downsizing efforts.
“A tight labor market combined with discipline in hiring has resulted in a decline of $7.6 million in anticipated spending. An additional $3 million reduction is the result of incentivized faculty separations,” the report states.
Faculty separation is a part of the ‘Wright Size’ plan created by the university to downsize the university and help the university decrease its costs. Retrenchment and the faculty voluntary retirement incentive program are also a part of the plan.
