President Ribeau Lists ‘Sacrifices’ to Keep up With HU Operating Costs

Due to the nation's current economic crisis, the University's rising operational costs, and an overextended budget, President Sidney Ribeau sent out a letter on Monday, Feb. 13 that outlines changes that will have to go into effect at Howard in order to continue optimal University operations. 

 These changes result from expenses exceeding available revenue after the first half of the fiscal year. However, in light of the recent tuition increase, students are weary of the sacrifices, and the Howard community is curious as to the fiscal future of the University. 

  According to Howard University's "Financial Results for Fiscal Year Ended June 30, 2011", the endowment as of June 30, 2011 stands at $473 million, an increase of $73 million from the 2010 endowment. The University had $1 billion worth of investments under management and has experienced an improvement in operating performance in the past two years. 

 Operating expenses, however, grew to $824 million, an $18 million increase over 2010. The Howard community is deeply concerned with what else may need to occur in order to compensate rising costs.

 "Students are just given solutions without proper understanding of the problems," said junior political science major Patrick Wilborn. "Take care of all pressing questions and then present us with solutions." 

 Many students are not able to meet the financial requirements to attend the University, and are wondering if such challenges will further affect the already increasing tuition. 

 "I would like to know where my money is going," said sophomore English major Saida Usef. "The cost to operate the University is expensive, but so is the tuition. We should see more improvements to the University before we begin to see sacrifices the we have to take."

 The real question at hand surrounds the actual use of University funds and why the yearly operational costs exceed the current budget.

"We spent more money in financial aid than we budgeted to," said HUSA President Brandon Harris.  

According to Harris, who spoke with both the CFO and the Director of Financial Aid, the University intended on spending $70 million on financial aid and instead spent roughly $80 million. This along with other expenses that exceeded the budget are reasons that operating costs have since increased. 

 "The tuition would have went up regardless, however we need revenue from other sources, such as the Howard alumni," said Harris.

Additionally, the Office of University Communications says that nearly 80 percent of Howard's revenue comes from various government sources including Congressional appropriations, student financial aid, health care and external research funding. Funding from these sources is not growing in line with rising costs of higher education, health care, and Howard's costs specifically. Since 2008, the peak of the recession, the University has taken a series of aggressive steps to reduce costs and increase efficiency. Each of the actions being taken helps the University meet its financial obligations this year, while many of them will also help position the University for future success.

Actions that are to be taken between now and the end of the June include: academic and administrative support units only operating within an allocated budget, a pause on proposed campus facility projects, a review of contact services, a reduction in utility and other operating costs, and a considered furlough for faculty and staff on four to six non-instructional days throughout the year.

Visit howard.edu to access the letter and get a more in depth look at the actions to take place by June 30, 2012.