KALAMAZOO, MI (WKZO AM/FM) — Western Michigan University could be facing more job cuts amid the coronavirus pandemic.
Back on April 30th WMU’s President Edward Montgomery released a letter announcing 240 employee layoffs and wage reductions to offset their current financial losses.
It states that Western has already incurred losses of about $45 million dollars this fiscal year and could see another shortfall of between $45 million to $85 million in the 2020-2021 fiscal year.
On May 5th, Jennifer Bott, Provost and Vice President for Academic Affairs at WMU held a virtual budget briefing specifically outlining the effects of this health and financial crisis at WMU.
She says the $45 million loss would be the “best likelihood.” That means it would have to be a regular fall on campus with everything open and no enrollment drop. The “worst likelihood” would be a fall that is entirely online. Bott says this is what they’re preparing for just in case, but they have not made that decision as of yet.
“Our students pay 3 times what the state does, and so without our students we are no longer able to function,” Bott explained while discussing the university’s general fund budget.
Due to the financial loss, she says WMU will have to implement more staffing reductions from May through September. “Our choices are not the best choices, they are the least worse choices,” Bott stated. Over 70% of Western’s general fund budget is in employee compensation.
The university has already implemented a hiring freeze through the end of the spring semester, banned travel, froze or canceled planned construction projects, and encouraged that all discretionary spending be suspended.
She also explained that some of this data is “a snapshot in time” and may change a little bit but not enough to change their urgent financial challenge.
The full budget presentation can be found on WMU’s YouTube page.
WMU is also planning a virtual town hall to explain their response to the current COVID-19 situation. It will take place May 11th from 9:30 a.m. to 10:30 a.m. and will be livestreamed on the university’s website.
