ORANGEBURG, SC (WIS) -
SC State University's Board of Trustees
has yet to pass its fiscal year 2013 budget, after acknowledging a $10 million
deficit. Instead, trustees and university staff are still deliberating where
the remaining $4 million of the deficit will come from.
During a board meeting Thursday, trustees also learned
that its historical operating revenues are lower than its operating expenses,
which was highlighted in an auditor's report. For 2010, the university had
$81.7 million in revenue, followed by $91.6 million in 2011 and $91.7 million
in 2012. However, the university spent $115.9 million in 2010; $120.9 million
in 2011 and $118.4 million in 2012.
Despite spending more money than the university takes in,
the school's Assistant Vice President of Finance Eric Eaton said Thursday that
the university can make a $1.8 million debt service payment in October at "no
problem."
"At this point, with
everything we are talking about, we are not experiencing any undue stress,"
Eaton said. "We pay our bills on time. We are improving our administrative
process, collecting outstanding obligations on time and pulling from federal
sources. … We are trying to be more precise and crisp with the day-to-day
operations of the university."
Eaton told trustees Thursday that the remaining $4
million will come from personnel and operating expenses.
Part of SC State's deficit improvement came from a
decrease in enrollment. The university was projecting for 4,180 students, but
on Thursday, Eaton said the actual student enrollment is 3,824. That saved the
university $1.7 million. Eaton also pointed out current personnel cost savings in
salaries and benefits of $ 2.1 million.
When
asked if SC State University can satisfy the school's needs, Eaton was
confident that once a budget is approved, the university can fulfill all that
is needed to operate.
"We
have to attack the areas that we operate inefficiently," Eaton said, adding he
plans to deliver a budget to run the university. "We have a lot of room to
build improvement."
Incoming
Chairman Dr. Walter Tobin said as long as the information is transparent to the
board and the public, he thinks the university can stay open and continue to
serve its students.
"We
have to have solid information and accurate information to make those kinds of
decisions," Tobin said, who at one point in the meeting Thursday felt like
recently was the first time in years the board was given truthful financial
information about the university. "That's what we depend on the administration
for. We are then in the position to move forward."
The
Board of Trustees also plans to create a small committee to create a list of
criteria to search for a new university president. The board plans to have its
current year's budget approved by the end of October in time to notify staff
who will not be needed for the spring semester.
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