TOLEDO, Ohio — The University of Toledo's Board of Trustees approved the school's 2023-24 budget Thursday following a year of financial downturn for the institution.
The approved budget, which was backed by all present trustees, will see reductions of 7%, totaling $21.8 million in cuts across all supported by the general fund.
This includes job cuts, especially vacant positions and positions filled this year that will go vacant next year. 9% of the job cuts were directed to currently-filled positions, affecting around 32 employees. UT President Gregory Postel said they have been working to retain many in those positions in new roles.
Postel added that this will also cut 58 programs from the school curriculum. He explained they tried to cut programs that had no students attending or with very limited attendance.
Salary increases for employees will now be budgeted based on contractual obligations.
Further cuts included $4.7 million in institutional aid and $1.5 million in miscellaneous spending. However, the budget increases financial support for multiple programs at the UT Medical Center, which right now, according to financial officers present at the board meeting, is the driver of revenue for the school.
The upcoming year has an anticipated net budget of $4 million.
These cuts come on the back of recent financial hardships for UT.
Financial officers at the meeting reported to the board that expenses are growing at a faster clip than revenues. According to their balance sheet, the school is down just over $50 million, or 2.1% over the last 12 months.
And the school's operating margin is forecasting 5.2%, which ratings agencies want to see at 8% instead.
Even though tuition and fees are on-target with budget, they are down about $13 million year over year. Postel told WTOL 11 this is their current biggest financial challenge, with the northwest Ohio population not growing at a fast enough rate to meet financial expectations.
He said they intend to refocus their enrollment priorities, focusing on marketing to out-of-state, international, online and non-traditional students to try to fix the issue, but expects it will take at least a few years before enrollment can meet more satisfactory expectations.