University of Arkansas-Fort Smith Chancellor Discusses Enrollment and Budgeting During the Pandemic

FORT SMITH – The University of Arkansas-Fort Smith has experienced enrollment drops and a budget shortfall this school year, but less than estimated.

The university will not have to rely as much on its reserves to pay for expenses as officials had previously thought, according to Chancellor Terisa Riley. University leaders are working to cut costs and increase revenue so as not to draw on reserves next fiscal year, he said.

Riley made his comments during a homecoming "Chancellor's Talk" via Zoom last week.

The university predicted it would lose about 15% of its tuition for the fall semester as a result of the covid-19 pandemic and budgeted accordingly, it said. Fall enrollment was reduced by 5%.

Riley attributed the better-than-expected figure to "a lot of hard work" from faculty and staff, such as admissions and financial aid.

"We got scholarships on student accounts," Riley said. "We have the keys to the dorm rooms in their hands. I think they really had an overwhelming response as a campus to come together and make sure that if the students wanted to be here, we could make it safe."

Riley said that learning online is not for everyone. The university knew of some students who were struggling in the fall and expected their enrollment to decline in the spring. Enrollment decreased 11% compared to Spring 2020, although the school's budget decreased 15%.

Enrollment last fall was 5,887, which includes concurrent, undergraduate and graduate students, according to information provided by Rachel Putman, associate director of strategic communications. Official registration takes place on the 11th of classes. Enrollment for the fall semester of 2019 was 6,265.

Enrollment this spring was 5,002, a drop of 5,632 last spring semester.

These declines coincide with an "enrollment cliff" facing higher education. Researchers have predicted that higher education will see enrollment declines from declining birth rates, Riley said.

"And the only thing that universities can do is compete for the fewest number of students by being their best," he said. "So we expected enrollment to drop naturally from fewer people graduating because few people were born, but the pandemic has served a worst-case scenario for us."

Riley said the university believed it could run a budget deficit of more than $ 8 million by fiscal year 2021. Officials instituted a hiring freeze last spring that is ongoing, Putman said.

He noted that exceptions, such as hiring John Blue as its first CEO for Diversity, Equity and Inclusion in December, can be approved if the position is deemed critical to the university.

Riley said the school also convened its first budget council last year, as well as several subcommittees, to come up with suggestions for generating revenue, reducing spending and making smart investments. The university has not licensed or fired anyone during the pandemic.

Kathy McDermott, the university's interim vice chancellor for finance and administration and chief financial officer, said the six subcommittees and three budget council task forces made about 140 recommendations.

McDermott estimated that about a third of the recommendations have been implemented this fiscal year, such as the "Cleanup Project," a university-wide effort to remove excess furniture and equipment and consolidate item storage.

McDermott said that while all the recommendations are being considered, some may take longer to implement.

Sebastian County voters rejected in November a proposed 10-year extension of a 0.25% county sales tax that has been a source of revenue for the university since voters approved it in 2001. The tax expires on January 1.

Sales tax provides the school with an average of about $ 6 million a year, about 8% of its annual budget, Riley said last year.

He said that university leaders over the past year had assumed a reduction in sales tax and worked to begin paying the institution's debt with other money to offset the expiration of the sales tax.

Students walk Friday, February 26, 2021 on the campus of the University of Arkansas-Fort Smith in Fort Smith. UAFS officials released enrollment and budget information last week. Visit nwaonline.com/210228Daily/ to view today's photo gallery.
(NWA Democrat-Gazette / Andy Shupe)

Students walk Friday, February 26, 2021 on the campus of the University of Arkansas-Fort Smith in Fort Smith. UAFS officials released enrollment and budget information last week. Visit nwaonline.com/210228Daily/ to view today's photo gallery.
(NWA Democrat-Gazette / Andy Shupe)

The ÒNumaÓ statue is located on Friday, February 26, 2021 on the campus of the University of Arkansas-Fort Smith in Fort Smith. UAFS officials released enrollment and budget information last week. Visit nwaonline.com/210228Daily/ to view today's photo gallery.
(NWA Democrat-Gazette / Andy Shupe)