St. Louis University is facing a budget deficit that is forcing academic and administrative divisions to cut expenses by 4%, or about $20 million, this fiscal year.
The deficit is largely due to a sharp drop in international student enrollment. Last fall, the university enrolled 1,400 new international graduate students, and most of them paid full tuition of $36,000 or more.
This year, the university expected 1,300 new grad students from other countries but enrolled only 300.
The number dropped because the U.S. government issued far fewer visas to international grad student applicants, said David Heimburger, SLU vice president and CFO.
The resulting drop in admissions revenue means SLU must make difficult financial decisions, including implementing a near-total hiring freeze, restructuring programs and delaying a merit raise for faculty.
“We really need to change some permanent behavior in terms of our expense control,” Heimburger said. “This is not just a one year and we're done and everything's going to be perfect. I don't want to portray that to be the case.”
Undergraduate student enrollment remains steady for now, at around 8,500. Heimburger said that puts the university in a stronger financial position than universities with declining enrollment.
“We are strong financially, and so we're able to handle some of the things that are occurring right now — it's not devastating news,” Heimburger said.
Increased financial aid and high investment into faculty and graduate student research also contributed to the deficit, according to a May 15 letter from President Fred Pestello.
Academic leaders are coming up with strategic long-term plans for downsizing or restructuring their departments, said Christine Rollins, president of the faculty senate.
Deciding what to cut is difficult, but Rollins said she is encouraged that university officials are having talks with faculty.
“Anytime there's going to be change or rearrangement, there's natural anxiety as to how everybody is going to fit into that picture. I think one of the commitments with the faculty senate is that the university wants to do this in partnership,” Rollins said.
University officials say the restructuring will not negatively affect students, though it is still unclear what each academic department will cut.
Student financial aid and university-provided scholarships are not included in planned cuts. That is one concern many students are worried about, Student Government Association President Reuelin Arulanandam said.
Arulanandam has been meeting with university officials to ask questions and ensure they consider students when making decisions. She said so far, SLU has been transparent with students about its budget woes.
“I think it's in the university's best interest to be ahead of those changes and communicate that that's going to happen so that students are prepared, instead of having to apologize on the back end,” Arulanandam said.
University leaders wrote in a September letter that expenses are outpacing revenue growth. They outlined three teams that will work to address budget challenges, including finding revenue-generating opportunities and implementing long-term academic restructuring.
“These teams will work transparently and collaboratively, guided by Jesuit values,” the letter read.
In 2020, the Jesuit university went over its budget by $20 million, which led officials to cut costs. It is one of many higher education institutions in the region and country struggling with finances and enrollment numbers.
