Update on Financial Sustainability Initiatives
The Expanded University Budget Committee continues to review proposals from the community and thanks everyone for participating in the process of helping to improve the university’s financial sustainability. This process was launched to address the $52 million adopted budget deficit for Fiscal Year 2024 (FY24) and deficits projected in future years. As we look forward to a new academic year, we are writing to share an update on initiatives that have been selected for implementation.
Financial Sustainability Initiatives
As we reported in our update on May 9, the Committee received numerous proposals to be considered for the FY24 budget from faculty, staff, and students. Those that were academic program-related (i.e. proposals for new degree programs, changes to curriculum, new academic partnerships) were referred to the relevant college dean and the Provost’s Office for a separate review in accordance with existing faculty and academic committee governance structures. The remaining proposals that were considered fully complete were scored for viability by the Expanded University Budget Committee using this rubric. The proposals, viability scores, and feedback solicited from impacted departments were all shared with the President’s Leadership Team and the Executive Deans.
The President’s Leadership Team and the Executive Deans have reviewed the initiatives and have selected and prioritized the five initiatives listed below to move forward for implementation at this time. These initiatives were selected because they present the highest likelihood for successful implementation based on the criteria outlined in our rubric. Information on each selected initiative is available on this list.
Initiatives selected for implementation:
- Venue Lease and Summer Housing
- Optimizing Real Estate Portfolio and Space Usage
- Increasing Access to Diverse Student Populations Through Enhanced Support of Military Veteran Students
- University Trademark Management and Mitigation Plan
- Reimagining the New Store and Promoting our Students/Alumni Work
The university will draw upon some of the investment funds included in the FY24 budget to fund the implementation of these initiatives. The remaining submissions to the UBC+ will stay in consideration and may move forward at a later date.
Addressing the Budget Deficit
As noted above, the FY24 adopted budget reflects a $52 million deficit. By approving this deficit budget, the Board has enabled the university to address the projected financial gaps we are facing in a more strategic and thoughtful manner than would have been possible otherwise. The FY24 budget includes an additional $15 million that can be drawn upon to implement the approved initiatives and to fund other efforts that have the potential to improve our financial situation over the long term. It also includes two significant non-recurring costs: the loss of revenue resulting from the temporary closure of the Stuy Park residence hall for renovation ($11M) and the remedies for continuing students ($11M). Although these costs will not recur in FY25 and beyond, we are still projecting deficits in those years.
The Board of Trustees provided their approval for the planned deficit with the explicit expectation that the university would present them with a long-range plan for closing the financial gap. While the five selected initiatives will help in this regard, they will not fully address the financial gap, and the President’s Leadership Team and the Deans continue to work on a comprehensive long-range plan with input from the Board. Additional updates on this work will be shared by University Leadership.
Looking Ahead
Over the next year, the Expanded University Budget Committee will continue to collect and review initiatives from the community. Open information sessions are scheduled monthly through December to allow community members to drop in to ask questions as they continue to work on proposals. View the open information session schedule on our University Budget Committee webpage.
We have also partnered with the Financial Transparency Council to create a series of information sessions on topics related to university finances. The series began in May with Understanding The New School’s Finances: Gift Giving and Endowment Management. Additional sessions will be announced in the fall.
Please feel free to reach out to the Expanded University Budget Committee at universitybudcomm@newschool.edu if you have any questions. Thank you again for your continued support and participation as we work together to build a stronger, more financially sustainable New School.