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Re: Faculty Prepares for $5.5M Projected Budget Shortfall

Zully Sosa, executive editor 

After receiving clarification from Augsburg administration, the Echo would like to note that our previous issue’s News article “Faculty Prepares for $5.5M Projected Budget Shortfall” is in response to early projections for Fiscal Year 2023 that takes into account the impact of COVID-19 without relief funds. We would also like to reiterate that the FY23 Budget is not finalized or approved. 

The following are statements from Director of Public Relations and Internal Communication Rachel Farris. 

To clarify the work currently underway as Augsburg prepares for the next fiscal year: 

“University leadership routinely assesses various revenue and expense scenarios when preparing the annual budget. In this current cycle, colleges and universities across the country are anticipating continued revenue impacts from the COVID-19 pandemic. Our financial modeling process allows the university to take a planful approach to aligning plausible revenues with projected expenses. The Board of Regents will review the budget at its spring meeting in May.” 

Additionally, about the causes of the projections: 

“Some of the larger revenue impacts from the pandemic include an increase in the number of students who were not able to remain enrolled this fall and the fact that more students have chosen to live at home instead of on campus during the pandemic.”

A follow up article about the FY23 budget will be published later this year.