University Leaders Addressing Financial Concerns
Photo provided by Rampage student photographer Nathan LePere.
Bluefield University students and employees may soon be dealing with budget, program, and personnel cuts again as BU leaders deal with a projected revenue shortfall for fiscal year 2023-2024.
Just less than two years ago in April 2022 the university was managing a similar financial challenge as a result of multiple years of not reaching targeted goals in both undergraduate traditional and undergraduate online enrollment. The most recent financial issue developed as a result of an error in projected revenue related to the university’s scholarshipping model, according to Dr. Michael Salmeier, interim president and provost.
Dr. Salmeier said BU detected the most recent financial issue in late November 2023 when financial managers discovered the university had less cash on hand than it had projected. Further analysis, he added, determined that corrections would need to be made in order to avoid a significant cash deficit by the end of the fiscal year, June 30, 2024
“The reality is that small colleges like ours live on very slim financial margins,” Dr. Salmeier said. “A miss on projected revenues can have a large impact, and there is not a lot of ‘fat’ in the budget that can be cut to offset a revenue miss.”
To determine the corrections that need to be made, Dr. Salmeier said the administration and the BU Board of Trustees will be reassessing the university’s structures, programs, and expenses to ensure the institution is operating within its budget, not just this year, but for years to come. Toward that end, he said, the Board has established a task force to work with the administration over the next two months to complete this assessment and to develop a plan for restructuring.
“It is too early to discuss what is being considered (in terms of budget cuts, program cuts, and personnel cuts),” Dr. Salmeier said. “We need to let the task force complete its work. The task force should complete its work by the beginning of March.”
In the meantime, should students be concerned about academic majors being discontinued, student services being reduced, or sports programs being cut? Should employees be worried about operating budgets being trimmed or jobs being eliminated?
“Let’s wait for the task force to complete its work before being concerned about majors or sports not being offered,” Dr. Salmeier said. “It does not help to be concerned about something that may or may not happen.”
Dr. Salmeier added that should a major no longer be offered, the university would develop plans for the students in that major to be able to complete their degrees. He also said, “there is every reason to believe the university will be open in the fall.”
“The administration, the task force, and the Board of Trustees are committed to that outcome,” he said. “Bluefield University is an institution that has created opportunities for generational transformation for over 100 years. We expect this to continue for a long time to come.”
Isaiah Rife, Student Government Association (SGA) president and assistant resident director, said he found out about the university’s financial struggles initially through rumors that were later confirmed through an email sent to faculty and staff.
“As of right now, there are many plans in the works to combat the financial struggles,” Rife said. “Administration is doing a terrific job planning and executing what needs to be done at the university, and there is light at the end of the tunnel for Bluefield.”
Rife added that financial struggles like this are not unique to Bluefield and that he’s confident the university will overcome.
“Financial struggles are something that every business, cooperation, school, and human being will go through at some point in time,” Rife said. “Although the struggles are inevitable, I believe that we, as a university, have solid leadership that can handle the financial situation. The university has a strong, Biblical foundation that will withhold through any storm that may come, and we must keep faith in the Lord. Truly, I personally believe that the university is going to be okay, and Bluefield University will prosper for many years. Go Rams!”