University forced to make up $20 million in losses

At the Faculty Assembly on Tuesday, Provost Steven Lerman told professors that GW hoped to restore about $20 million in expenditures that it was forced to cut this year. Daniel Rich | Hatchet Photographer
At the Faculty Assembly on Tuesday, Provost Steven Lerman told professors that GW hoped to restore about $20 million in expenditures that it was forced to cut this year. Daniel Rich | Hatchet Photographer

The University was forced to make up about $20 million in its budget this year, after a decline in graduate enrollment and overspending put GW below its projections last fiscal year.

Provost Steven Lerman told faculty members at the Faculty Assembly on Tuesday that academic and administrative departments had been forced to cut costs this year after the University had to dip into its reserve funds at the end of the last fiscal year.

GW fell about $10.9 million short of its expected net revenue last year, since enrollment in graduate programs fell across most schools. GW’s total expenses last fiscal year were also about $10.6 million more than planned, Lerman said.

“It is very clear that the issues in the downturn of our graduate revenues has affected us in ways we’d rather not have happened, and the key here is to restore graduate enrollment. Each of the deans is looking at all their programs, and we continue to work with them,” Lerman said.

To make up for its losses, Lerman said GW reduced its number of vice provosts by one, cut costs in schools and brought in about $1 million through a program that brought about 400 Brazilian students to GW this past summer.

The decline in graduate enrollment meant the University spent less on financial aid for graduate students, Lerman said. He also said that GW cut about $6 million in areas that report to University President Steven Knapp and Executive Vice President and Treasurer Lou Katz.

Lerman said the University would make up for its losses this year, and that he hopes to restore some of the areas where GW has reduced costs.

“Looking at the 2015 numbers, we are meeting the numbers we need to meet. Our undergraduate enrollment is actually a little higher than forecast. Our graduate enrollment is on target, although that may vary by school. In the aggregate, that is a true statement,” he said.

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