University Facing Potential $4 Million Budget Deficit in 3 Years if Costs Not Cut - Michael McDevitt, Loyola Phoenix

A majority of Loyola’s operating costs, about 62 percent, is funded by tuition revenue, Magdziarz said. One of the university’s biggest costs continues to be salaries and benefits — which account for nearly 60 percent of annual expenditures, he added. However, Magdziarz said the university has begun to mitigate tuition increases and pay more in financial aid, meaning net tuition revenue per student has suffered. Magdziarz said the solution is two-pronged: fund scholarships out of the university endowment — a pool of money filled by annual surpluses, investments and alumni donations — and identify expense reductions, a majority of which is salary and benefit costs, of about $8 million by June 2018. Instead of filling vacancies and hiring additional staff, Magdziarz said the university plans on redistributing the work to existing faculty — giving them raises for the extra work and saving money in the long run by reducing the number of positions. http://loyolaphoenix.com/2017/11/university-facing-potential-4-million-budget-deficit-3-years-costs-not-cut/