Idaho State University working to adjust for loss in revenue
Idaho State University is facing a $12 million loss in revenue.
The loss comes mainly from a drop in enrollment of middle eastern students. After Saudi and Kuwaiti governments cut scholarships for students to come to U.S. universities, including ISU, the university saw a large drop in enrollment numbers.
This week, ISU President Arthur Vailas is meeting with legislative officials in Boise to talk about budgets and solutions for the university.
Vailas said the university is facing a 35 percent decline in Middle Eastern students and that’s left the biggest dent in the school’s budget.
Stuart Summers, vice president of marketing and communications and spokesperson for ISU, said the university knew of the changes in the country’s scholarship programs and were prepared for the large loss of students.
“It wasn’t a surprise to us,” Summers said. “At ISU, we knew that we would be losing students from the middle east and it was something that we began preparing for in 2015.”
Even though the university was prepared, $12 million is still a large loss to compensate for. Governor C.L. “Butch” Otter approved $151.5 million in total higher education funding for ISU. The university said between that and it’s plan it has in place, it can handle the loss in revenue.
“We have a plan in place to help us implement some changes that will help us to absorb that $12 million shortfall,” Summers said. “And this was something we had time to prepare for, we have reserves. We’re also tightening the belt, just as any household would do when they’re facing challenges financially.”
Summers said the reserves will allow the university time to implement its budgetary changes and adjust for the shortfall.
He also said “tightening the belt” does not mean cutting costs that would affect students’ education.
Summers also said even though enrollment numbers were down for international students, overall enrollment for fall semester was still positive. He said the university saw an increase in resident students. But he said because international students do pay higher tuition, it makes a larger loss than a drop in resident or U.S. students would. However, he said enrollment overall is still up. He said ISU has a plan and its confident moving forward.
Vailas also told the legislature he was “confident we can maintain that balance.”
Also discussed at the legislative meeting were two buildings for ISU. One, was funding for the Gale Life Sciences Building to make improvements there. ISU said it’s a big contributor to the university. Gov. Otter also proposed a $35 million building program as part of the stat’s Permanent Building Fund budget. This would hopefully allow ISU down the road to build a polytechnical institute at its Idaho Falls campus. All of this, the university said, would only help contribute to the university’s enrollment and overall success as well.
