Financial Impact

“Given all of the hard work you have been putting in during this time, it is very difficult for me to ask even more of you. But I do need to ask you for greater sacrifices to address the current situation and preserve the long-term strength of our great university.” — President Samuel L. Stanley Jr., M.D.

The financial impact of the novel coronavirus on MSU is already in the $50 to $60 million range for the 2020 fiscal year, which ends June 30. Looking forward to fiscal year 2021 (July 1, 2020-June 30, 2021), MSU anticipates an additional $150 million to $300 million in lost revenue to the university’s general fund budget and auxiliary units.

Additionally, there is the risk of a significant decline in MSU's state allocation based on forecasted large decreases in state revenue and new expenditures associated with the pandemic.

There are many difficult budget and employment decisions that will impact the campus community. President Stanley on May 11 announced further plans to address the budget shortfall. Below are the steps the university is taking to address the current and next fiscal years, which are projected to see a 11% shortfall in general fund expenditures: 

  • President Stanley has announced that all MSU executives will be taking a 2% to 7% temporary pay cut based on salary levels. He will be taking a 10% pay reduction, effective immediately.
  • MSU will implement a minimum 3% budget reduction to academic and administrative units.    
  • Several MSU unions and the university have reached agreements on furloughs, and negotiations and ratifications with many of MSU's unions are ongoing. Furlough and layoff notices have begun going to employees in different units across campus.  
  • The president and provost are in consultation with academic governance leadership and the deans to discuss faculty and academic staff compensation, and those proposals are being finalized.
  • A university-wide hiring chill was announced in March, with some exceptions. President Stanley has announced that chill will be tightened, and the filling of vacancies will be limited. All hiring decisions must be approved by the relevant vice president or provost. 
  • The university is continuing to examine all capital projects to determine which can be paused, briefly delayed or indefinitely postponed. 
  • MSU will reduce or eliminate consultants wherever possible. 
  • Discretionary expenses, including travel (which already has been curtailed greatly), are being reduced to the greatest extent possible.
  • The university also is considering proposing campus-wide salary reductions in a scaled manner for all other employees and proposing a reduction in MSU’s above-the-match retirement plan contributions. For those MSU employees represented by a union, those changes may require bargaining and ratification by union leadership or members.