Covid-19 adds to struggles at HSU

Virus effects pile on financial woes

Henderson State University leaders continue budget cutting and longterm financial planning as the already financially challenged university now copes with the novel coronavirus pandemic.

University leaders expect to receive $1.9 million less next fiscal year than this year, and they’ve struggled this year to have more than a week’s worth of cash on hand.

The expected loss stems from reduced state revenue related to the pandemic. The university also anticipates losing nearly $900,000 for the same reason this fiscal year, complicating an already dizzying time for the university’s finances.

“The COVID-19 pandemic has created a lot of unknowns for higher education, including us,” spokeswoman Tina Hall wrote in response to an Arkansas Democrat-Gazette request for an interview. “We know from messages we are receiving from students that some of them are struggling financially due to unexpected job losses and other factors.”

How the university can apply the nearly $4 million it will receive in federal emergency relief funding will help it adjust to this year’s budget shortfall and

next year’s, Hall said. The university will spend $1.8 million of that money on aid for students.

The university announced Friday its grant application process for Coronavirus Aid, Relief and Economic Security Act funding. The grants range from $210 for undergraduates who took five or fewer hours to $840 for undergraduates who took 12 hours or more and graduate students who took six hours or more. Any student who submitted a Free Application for Federal Student Aid for this academic year is eligible.

University trustees haven’t met yet to pass next year’s budget, which includes tuition and fee rates for students. That meeting typically occurs in May, but Trustee Creed Spann said trustees haven’t been meeting during the pandemic.

The reality will be grim when they do, he said.

“I think it’s pretty obvious that covid-19 is going to make it pretty difficult for any entity to continue to … [operate] with the same zeal that it had prior to it,” Spann said.

“Just everything you read in the paper and everything you read in the news is just negative toward the economy in general,” he continued, adding that that applies to schools and government agencies, as well.

Spann said he hasn’t discussed the budgeting process with university leaders.

At the University of Arkansas

at Little Rock, the faculty senate opposed proceeding with Chancellor Christina Drale’s retrenchment plan to restructure the university’s academic offerings during the pandemic. It cited a lack of data and pending, long-lasting changes in higher education because of the pandemic.

At Henderson State, leaders haven’t sought retrenchment but remain focused on cutting from the school’s budget. Faculty and staff senate leaders didn’t respond to written questions as to whether they have reservations about proceeding with budget cutting and long-term planning during the pandemic.

Henderson State had a $5 million budget shortfall last year that wasn’t factored into this year’s budget, which included faculty raises. The university sought a $6 million advance in state government appropriations to cover the loss and additional expenses, while promising to cut its current-year budget.

So far, trustees have cut about $3.5 million by reducing courses, operations and faculty pay, but the actions aren’t enough to make up for the $6 million less this spring. Last month, the Arkansas General Assembly voted to allow Henderson State to have another eight years — until June 30, 2028 — to pay back the $6 million.

Henderson State trustees and Arkansas State University System trustees have voted to merge the university into the ASU system, which is expected to provide Henderson State with additional resources.