The Committee on Salary and Fringe Benefits announced faculty salaries will not increase during the Webster University Faculty Assembly on April 21. In fact, Webster has made $8 million in cuts just for the 2016 fiscal year.
The 2015 fiscal year overview showed Webster University’s student enrollment decreased and would miss it’s planned revenue mark by 10 percent.
Missing the planned budget by 10 percent is equivalent to $19 million below what was expected. This created a need to make expense reductions heading into the 2016 fiscal year.
Operating expense reductions included: $4.4 million saved from administration and staff reduction, $2.2 million saved in vacant positions, $1.7 million saved in travel, entertainment, equipment and supplies and $1.2 million saved from class scheduling initiatives.
According to the committee, Webster has cut around $8 million in expenses for the 2016 fiscal year. Webster is expecting an expense increase with general insurance for depreciation and utility operating leases of $2.3 million.
Webster is looking at projected total revenue of $208.7 million for the 2016 fiscal year and $206.7 million in projected expenses, giving the university $2 million in operating revenue.
In previous years, Webster’s financial committee preferred to budget five percent ($10 million) to the operating reserve.
Consequences with Staff
With only $2 million in revenue to spend, faculty salaries are not expected to increase. The suggested raise in salary was $100 per course, which is about one percent. A one percent raise would add an additional $2 million to the budget, putting the university right on the edge of a negative budget.
According to the Faculty Salary & Fringe Benefit Committee proposal, the faculty salary will be reevaluated in September. If the current budget projections for the 2015-16 fiscal year are still successful and enrollment targets are met by September a two percent wage increase will be discussed for the faculty.
2016 Revenue Increases
Webster University is projecting a total operating budget of $208.7 million. According to the presentation, an increase from the previous year.
The increase is due in major part to a three percent raise in tuition that will offset the enrollment decrease. The raise in tuition will not affect military students.
The increase can be attributed to growth in international enrollment due to significant investments, as well.