Syracuse University has lost an estimated $35 million as a result of the coronavirus pandemic, university officials announced Monday.

The $35 million total includes lost revenue and unplanned coronavirus-related expenses, Chancellor Kent Syverud, Interim Provost John Liu and SU’s Chief Financial Officer Amir Rahnamay-Azar said in an SU News release Monday. 

The university will enact several measures to lessen the virus’ financial impact on the 2020-21 academic year, including freezing salaries and hiring for faculty and staff, reducing university-wide costs and halting non-essential campus construction projects, the officials said. 

“While there are many unknowns for the coming year, we can realistically expect further and significant financial challenges ahead,” Syverud, Liu and Rahnamay-Azar said in the release. “We must take action that allows the University to continue delivering on its mission while at the same time securing our financial future.”

The coronavirus causes COVID-19, a respiratory disease that has infected 242,786 people in New York state and killed 13,869. SU suspended on-campus classes for the rest of the semester and moved to virtual learning on March 16.

SU has “casual optimism” that it will bring students back to campus in fall 2020, and is determined to do so safely, the officials said. 

Syverud, Liu and Rahnamay-Azar will each take a 10% pay reduction for the 2021 fiscal year. Vice chancellors, senior vice presidents and deans will take a similar reduction, as will the university’s athletic directors and coaches in football, basketball and lacrosse. 

SU will reallocate funds generated through compensation reductions to support students, faculty and staff particularly that the COVID-19 outbreak has particularly impacted, the release said. 

The university will also indefinitely pause hiring for all non-essential staff positions. SU will follow existing hiring practices to replace essential staff and hire positions deemed critical to the university’s mission, the officials said.

“This action allows us to focus on sustaining and supporting our current faculty and staff,” the email said.

Additionally, SU will not grant any merit increases to faculty and staff for the 2021 fiscal year. 

University leadership will work to implement a 5% cost reduction across all administrative, academic and auxiliary units, according to the release. Leaders in each unit — including deans, directors and department heads — will work with SU’s senior leadership to determine how to apply these spending cuts. 

The university has placed all new construction projects on hold, the officials said. Projects currently underway — including the renovation Carrier Dome — are exempt, as are those deemed critical to SU’s mission or those required to fulfill regulatory or safety requirements.

Members of the SU community can expect additional details about the university’s financial response to COVID-19 in the days and weeks to come, Syverud said.

“We recognize and acknowledge the shared sacrifice that is being asked of our community,” the officials said. “These actions are difficult because they affect our university’s most treasured resource — our people.” 

Published on April 20, 2020 at 1:39 pm

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