Ohio State’s long-term growth in good shape even amid pandemic
As vaccinations increase and The Ohio State University prepares for more-normal operations, leaders say the institution’s financial outlook is strong and, while challenges remain, Ohio State is well positioned to invest in the future while continuing to manage the COVID-19 pandemic.
“The strength of our fiscal position is due to the prudent management of our resources during this challenging time, strong financial market performance as well as our successful investment strategy,” said Chief Financial Officer & Senior Vice President for Business and Finance Michael Papadakis. “These factors led to an increase of nearly $1.4 billion of investment income for the university over the prior fiscal year.”
“The endowments and restricted funds, which represent the vast majority of this increase in value, support scholarships, research, faculty and other core functions that allow Ohio State to put forth bold new ideas to shape the university and Ohio for years to come.”
Ohio State’s long-term financial prospects remain strong despite spending tens of millions of dollars to combat the spread of COVID-19 and facing revenue losses in multiple areas: a 13% decline in net tuition and fee revenue of $109 million coupled with a decline in auxiliary revenues of $159 million due to lower student housing and dining occupancy and limited revenues from athletics programs.
This week, the Board of Trustees will review an interim financial report covering July 1, 2020, to March 31, 2021. Pending approval from the board, the university plans to resume its Annual Merit Compensation Program for faculty and staff. In the merit process, eligible employees can receive an increase of up to 2% of their base salary.