Enrollment Impact on PNW’s Budget for FY20
To: Faculty and Staff
From: Thomas L. Keon, Chancellor
Date: October 25, 2019
RE: Enrollment Impact on PNW’s Budget for FY20
For the second consecutive year, Purdue Northwest began the 2019-20 academic year with a larger freshman class and full-time student population and a problematic retention rate. While overall enrollment of first-time-in-college students increased by about 4 percent compared with fall 2018, our total enrollment declined by 4.5 percent. The general fund budget projected shortfall is $3.5 million over the course of the current fiscal year.
We are taking measures to ensure that PNW continues to stay fiscally solvent. Vice Chancellor for Finance and Administration, Steve Turner and his staff have been able to identify an initial $1.1 million in savings through such measures as adjusting the tuition contingency fund, reducing administrative overhead expenses, and reallocating staff positions to other funding sources.
Budget impact on faculty, staff, and students
Steps are also underway to adjust to the remaining $2.4 million shortfall. Each of the divisions are being asked to reduce their recurring costs proportional to their reliance on the general fund, as outlined in the following table. These changes are expected to be implemented in fall semester 2019.
| Divisional Unit | Recurring Allocation* | Percent of Funding Base | Reduction |
| Chancellor | $3,214,300 | 3% | ($79,557) |
| Institutional Advancement | $2,842,585 | 3% | ($70,356) |
| Enrollment Management and Student Affairs | $9,691,180 | 10% | ($239,866) |
| Finance and Administration | $17,732,278 | 18% | ($438,890) |
| Information Services | $10,792,605 | 11% | ($267,127) |
| Academic Affairs | $50,486,548 | 52% | ($1,249,588) |
| Intercollegiate Athletics | $3,088,419 | 3% | ($76,441) |
| Total General Fund Base | $97,847,915 | 100.00% | ($2,421,825) |
The leadership of each division will determine how to best approach these reductions. Measures may include reduction of supplies and equipment (S&E) budgets, elimination of vacant positions, and a very limited reduction in force of current positions.
The steps outlined above are evidence of our continued focus to make adjustments that are fiscally responsible in response to continued enrollment and financial challenges.