Ohio State University shows progress in reducing deficits

COLUMBUS – The Ohio State University Board of Trustees received some good news Friday (11/1) in the annual deficit report to the Fiscal Affairs Committee.

William J. Shkurti, senior vice president for business and finance, said that University Health System no longer has a deficit, and finances continue to improve, with year-to-date numbers far exceeding first quarter numbers a year ago. The Department of Athletics’ expenses are slightly ahead of last year, yet net operations are positive and within budget. Positive financial reports were also given for the Schottenstein Center and The Blackwell Inn on the Fisher College of Business campus.

The University Health System had net positive operations of $4.2 million — a $22.8 million improvement over last year, Shkurti said. Cash reserves remain strong at $74 million.

Since the report was initiated in 1993, 27 units have resolved deficits totaling $45.6 million. Currently, 16 units have deficits totaling $19.7 million – less than 1 percent of the university’s annual operating budget, Shkurti said.

All significant deficits identified before fiscal year 2002 have been reduced while six new deficits developed during the fiscal year. Of the new deficits, Shkurti said all have reduction plans in place except Transportation and Parking Services, which is currently developing a plan and seeking input from its users.

Trustees also heard Shkurti’s first quarter budget report – the first in a series of quarterly financial reports for fiscal year 2003. Shkurti told trustees that summer and fall quarter enrollments met projections, with total enrollment up .1 percent and non-resident enrollment down 2.9 percent. However, the financial impact on tuition and subsidy revenues is negligible.

Although state support may increase $2.3 million over spring quarter estimates, based on preliminary projections provided by the Board of Regents, Shkurti recommended the university postpone possible changes in budget projections until mid year, due to the unpredictable economy and an unclear state budget picture.

Shkurti said that endowment distributions at the beginning of fiscal 2003 based on three-year averages increased 2.4 percent over fiscal 2002, from $61.3 million to $62.8 million.