Drew Dixon
Jacksonville University is enacting dramatic financial cuts in the wake of the coronavirus outbreak and the economic chaos the pandemic has brought, the school announced Thursday in a video statement from school President Tim Cost on its website and social media.
“We were looking at a slightly positive year on a roughly $100 million base,” Cost said.
But that was before the pandemic. Now, Cost expects a $3.5-$4 million deficit.
Furloughs are now being instituted for staff along with pay cuts. Those who are temporarily laid off can get unemployment benefits and federal assistance until they return to campus for regular shifts, Cost said.
Employees earning between $45,000 and $50,000 per year will receive a 1% pay-cut while those making more than $100,000 will take a 6% pay-cut.
Cost said senior university employees comprising the top 10 earners voluntarily agreed to pay-cuts ranging from 10% to 50% of their regular salaries.
Cost said there is “uncertainty” as to the future of summer semester and possibly fall semester. He said the university cannot determine what the financial status of the college will be when school starts in August.
They expect revenue losses from student housing, summer camps and other campus programs as well as cost increases in some areas, including health care programs.
The liberal arts school has a large out-of-state and international student body. Cost said the university is still grappling with assisting dozens of students who have been unable to return to their homes since coronavirus restrictions were implemented when the school broke for spring break the second week of March.
“The students who are still here on campus, can’t get home,” Cost said. “We had to move them, take care of their security, their health, their housing, their food. These are difficult decisions. They increase our expenses at times and they’re dampening our revenues at times.”
The school plans to continue with online education for the foreseeable future.
