UConn’s anticipated shortfall could range from $47M to $129M

Best case scenario, the University of Connecticut is facing a $47 million deficit in the fall.

The spending plan could be off by as much as $129 million, the UConn Board of Trustees will be told when they meet on Wednesday.

The penciled-in $1.536 billion budget for UConn’s main and regional campus remains wrapped in uncertainty based on the global pandemic that closed campuses in March and promises a tentative fall reopening plan at best.

“Operating revenues will very much depend on our ability to reopen for in-person instruction on our campuses, maintain enrollment, and maintain occupancy in our housing and dining program,” Scott A. Jordan, UConn’s chief financial officer, said in a memorandum to the board.

There remains a risk that the state could take back some of its promised block grant to its flagship institution based on its own pandemic-caused fiscal woes.

Also uncertain is the still evolving plan by UConn officials to de-densify classrooms and residence halls and offer some or all classes online.

At best, a $47 million shortfall counts on strong June 1 student deposits. Those numbers have yet to be released.

The shortfall includes a deficit carried over from the spring plus ongoing COVID-19 fiscal damage in the form of fewer students, particularly international students but also domestic and even in-state students. Also, there would be a loss of housing and dining revenue, fees and state support. The biggest financial hit would be taken if UConn had to run its entire 2020-21 year online.

As of now, UConn is planning an in-person fall semester up until the Thanksgiving break. The remaining two weeks of the fall semester would be held remotely.

Also not yet addressed is how many cuts will be made to UConn’s athletic budget. That is expected to be taken up when the board meets Wednesday.

One budget option, however, would call for a reduction of athletics — $10 million over three to five years — along with efforts to raise new revenue, eliminate programs with low enrollment, increase class sizes — which seems unlikely, at least in person given pandemic concerns — and potential pay raise deferrals, furloughs or layoffs.

“It’s fair to say that everything is on the table at this point,” said Stephanie Reitz, a university spokeswoman.

Last week, UConn President Tom Katsouleas sent a letter to staff and faculty outlining what he called the best-case scenario.

“The University, unfortunately, has not fared so well,” Katsouleas wrote. “As bad as the economic losses have been to the state, for the University they have been worse”

Sending students home in the middle of a semester this past spring cost UConn an estimated $30 million, Katsouleas said, only $10 million of which was recouped from the CARES Act. Another $10 million was shaved off through a hiring and spending freeze.

As for the fall, Katsouleas said there are simply not enough costsaving measures at his disposal to replace the loss without decimating programs across campus.

“It does not appear that there is a path that achieves my guidance to avoid long-term harm, protect this generation of students, and the UConn family,” Katsouleas said.

He started off the letter telling faculty and staff he is committed to them receiving pay raises they have more than earned.

He ends the letter asking faculty for assistance.

“Management at UConn, including me, will be making the same accommodations that we have asked of the rest of our workforce, or more,” Katsouleas said.

Tom Bontly, president of the UConn AAUP chapter, said the union is keenly aware of the economic hardship felt throughout Connecticut, and of the University's current revenue projections.

“We are fully committed to protecting the high quality and affordability of public higher education,” Bontley said. “We have responded internally to President Katsouleas' message and await further information before making a formal response to the administration’s request.”

He is also hoping the budget presentation on Wednesday will provide some clarity on measures being contemplated.

lclambeck@ctpost.com; twitter/lclambeck