CCU leaders push for university to reopen this fall to avoid even more financial hardships
Coastal Carolina University will most likely reopen for the upcoming fall semester, but the future is uncertain until the university gets more guidance from state leaders.
CCU plans to hold in-person classes for the fall semester, but not without some major financial changes due to a potential 15 percent decrease in enrollment.
Chief Financial Officer David Frost briefed the university’s Board of Trustees on budget plans for both an open campus and a totally online semester. No matter what happens, CCU will have to cut back spending.
Trustee George Mullen said he wants the university to be positive and confident when announcing their reopening. He thinks if CCU has an unsure tone in its messaging, potential students will go elsewhere.
The University of South Carolina and Clemson University have already announced it will reopen in the fall.
“I think we need to be unequivocal in our statement that we will reopen in August. Obviously if the governor comes and says something different a month from now, that will change it,” Mullen said. “But our position needs to be today ‘absolutely, we are opening.’”
The decision to reopen or not has huge implications for the university’s budget. Reopening in the fall leads to an expected $24 million shortfall in revenue compared to the previous fiscal year. An online-only program could lead to a $41 million shortfall.
Allowing students to return to campus is critical, but it has to be done safely, CCU President David DeCenzo said. He believes that an online-only semester could be detrimental for enrollment and university finances.
CCU has been closed since March, but classes continued online. An in-person graduation has also been postponed. More than $8 million has been refunded to the students. Also, many students will get an additional refund from the federal stimulus act.
Half of the $10 million given from the CARES act will be given in refunds.
University leaders are making enrollment projections based on deposits from admitted students. The deposits confirm your spot as a first-year freshman or a transfer student. Out-of-state deposits are still holding, but in-state deposits are down, making leaders worried about the future.
DeCenzo thinks the reason in-state deposits are down is because of the unemployment situation in South Carolina.
“A lot of families see a $200 deposit as the difference between getting groceries this month,” DeCenzo said. “Money is tight.”
CCU allows students to enroll at the university basically until school starts, DeCenzo said. He hopes as the economy improves more students will be able to attend.
Plans to reopen campus are ongoing. It will require adequate testing, social distancing and public health precautions and financial planning for a smaller university compared to last year.
“It is clearly our intention to open the institution,” DeCenzo said. “It’s crucial we have the opportunity to open up.”
If the campus can’t reopen for the fall, enrollment will likely decrease even more. Provost Daniel Ennis said surveys show student confidence of returning as a student drops significantly if only online classes are offered.
As of now the board of trustees will keep tuition and a majority of other fees at the same level to not create a financial burden on students. Frost presented a balanced budget to the BOT that accounts for the loss in revenue and the enrollment decreases.
If there are only virtual classes, there will be less out-of-state revenue due to online tuition decreasing closer to the in-state rate.
Plans could change as the university gets more information from the South Carolina statehouse. Both the state senate and house of representatives are expected to meet next week to maintain current spending levels and to allow public universities to begin cost-saving measures.
“One of the reasons we are trying to make cuts is to not put the financial burden on the back of our students,” DeCenzo said.
If there is a 15 percent decrease in enrollment, CCU’s spending will need to be adjusted. Trustee Wyatt Henderson said if the actual enrollment is below 15 percent come August, the board will have to make even tougher decisions.
Frost said the university submitted a plan to the state seeking permission to begin furloughs of some employees. In addition, the university is beginning a voluntary separation plan that would allow some employees the chance to retire early.
Pay cuts could be in the future, but DeCenzo said the university needs to see how much state funding will be approved, enrollment and the overall size of the university. The BOT discussed more specifics of potential layoffs behind closed doors in the executive session.
Other cost-saving measures could include reviewing nonessential services, leases or programs offered. On Friday, the BOT reviewed some of its leases and gave DeCenzo the authority to terminate some leases if needed.
The BOT is scheduled to meet again in-person on May 15 following statehouse leaders making decisions. More concrete decisions could me made at that meeting.
“Until the General Assembly reaches a decision on a continuing resolution, there is not much we can do,” DeCenzo said. “We’re sitting on our hands.”
This story was originally published May 8, 2020 at 11:42 AM.
