YSU faculty analysis identifies budget alternatives

By Denise Dick



Youngstown State University spends a higher percentage of its budget on administration, auxiliaries and building operations and maintenance than most other state universities and less on academic instruction, research and academic support, according to a financial analysis prepared by the faculty union.

The analysis obtained by The Vindicator compares YSU with Ohio’s other public universities, excluding Shawnee State and Central State

It compares 2007 and 2013, showing an increase in tuition and fees of 2.9 percent, from 85.8 to 88.6 percent of total operating revenue for YSU.

Instructional and department research, or what’s spent for faculty, has grown less than 1 percent, and academic support has grown 1.7 percent from 2007 to 2013.

Conversely, institutional support, or administration, costs and what’s spent on auxiliaries — athletics, housing, Kilcawley Center, the bookstore — have increased, 2.9 percent and 4.2 percent, respectively, between 2007 and 2013.

Gabriel Palmer-Fernandez, chief negotiator for the YSU-Ohio Education Association, the union representing YSU faculty, confirmed that the report was presented last week to the joint negotiating team, composed of faculty and administration representatives. Neal McNally, interim vice president for finance and administration, and Holly Jacobs, university general counsel, also attended the meeting.

“No one raised any objections as to the facts or projections,” Palmer-Fernandez said.

Ron Cole, university spokesman, hadn’t seen the document.

“We’re not going to bargain this contract in the press,” he said.

The analysis also shows that YSU’s scholarships/fellowships higher than the other institutions in terms of budget percentage.

But its profitability is lower, at only 7.8 percent, compared with the median of 17 percent of the other schools. The profitability was determined in the analysis using EBITDA, earnings before interest, taxes, depreciation and amortization.

Included in the union’s analysis is a series of scenarios determining the effect on the university’s income if different strategies are employed:

One scenario uses current values, including a 1 percent increase in enrollment and a 4 percent faculty pay increase and shows that income will still be down by $5.2 million in 2015.

If on the other hand, the university changes its spending to be more in line with what the other universities spend and still using the 1 percent enrollment increase and the 4 percent faculty pay increase, YSU’s income increases to $11.7 million in 2015, the analysis shows.

With a pay freeze and a 6.5 percent enrollment increase with other costs remaining at the current levels, the university would break even in 2015.

If a successful retention program is implemented, generating a 3 percent enrollment increase and the university enacts a $10 per credit hour student athletic fee and the other costs remain at current levels, the university would still be down $3.3 million in 2015.

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