The Board of Trustees in June approved an $844.6 million operating budget for fiscal year 2024 (FY24), which started July 1 and ends June 30, 2024. It includes $348.1 million for the University, $50.7 million for auxiliary operations, and $409.5 million for the University of Toledo Medical Center.
The new budget reflects a $21.8 million cut to UToledo general fund supported areas, which includes colleges. It also projects a $20.7 million decrease in revenues for the University, down from $397.8 million in FY23 to $377.1 million in FY24.
Projected revenues are down due to a projected decrease in student enrollment, University officials said. Tuition is a key revenue for the University. In FY24 tuition and fees are projected to bring in $229 million while the state subsidy will bring in an additional $115.4 million.
The number of students living on campus and those purchasing meal plans have fallen faster than the reduction in overall enrollment. The budget includes a 4 percent increase in meal plans and a 2.96 percent average increase in housing costs.
Another issue officials had to address in the FY24 budget was an increase in expenses, due in large part to inflation. Salary increases on contractual commitments and non-bargaining unit employees were other expenses that had to be considered.
Sabrina Taylor, the Associate Vice President of Budget and Planning, described the challenges in reducing the budget, saying “more than 80 percent of the academic budget is people.”
When looking for areas to reduce budget expenses, the Office of Finance sought to preserve jobs and focus on current and upcoming job vacancies, officials said. Of the 19 people affected by the closure of the Center for Success Coaching, only three were not able to find employment elsewhere within the University.
Vice President of Marketing and Communications, Meghan Cunningham, expressed optimism about an increase in new enrollment numbers as well as larger retention numbers.
Taylor said the budget is a “very big and comprehensive budget,” and encouraged those who read it to “keep an open mind and think about the big picture.”
The University budget is a collaborative effort across the institution, officials said.
Budgets start at the department level, are then sent to deans and directors, who in turn get approval from the Provost or their area’s Vice President. These approved budgets are then sent to the finance office to be combined into the master budget which gets sent to the Board of Trustees for their review and approval.
