Wednesday, April 29, 2020
UA Projects a $250 Million Drop in Revenue Thanks to COVID-19
The UA can expect a $250 million drop in revenue along with a significant drop in new enrollment of both in-state and out-of-state students, according to UA President Robert C. Robbins.
Robbins delivered the grim news via an April 29 email to faculty and staff.
The UA is predicting:
• $250 million loss in revenue through June 2021;
• Auxiliary income loss of $58.2 million in revenue, including Intercollegiate Athletics;
• A decrease in philanthropic gifts and investment income from cash on hand, projected to result in a $54.8 million loss in revenue.
• A decrease of 11% in new in-state and 19% in new out-of-state undergraduate and graduate student enrollments, equivalent to an $18.7 million loss in revenue. Returning graduate student losses are projected to be 4% for in-state and out-of-state students, equivalent to a $1.6 million loss in tuition revenue.
• A decrease in research activity is projected to result in a $16 million hit to Facilities & Administrative Expense Recovery.
• Reduction in activities associated with departmental sales and service, summer programs, camps, and conferences is projected to result in a $14.1 million loss in revenue.
The UA has already seen an estimated $7.1 million in new expenses related to the COVID-19 outbreak and Robbins anticipates significant investments in fiscal year 2021 for testing, tracing, and isolation.
Robbins delivered the grim news via an April 29 email to faculty and staff.
The UA is predicting:
• $250 million loss in revenue through June 2021;
• Auxiliary income loss of $58.2 million in revenue, including Intercollegiate Athletics;
• A decrease in philanthropic gifts and investment income from cash on hand, projected to result in a $54.8 million loss in revenue.
• A decrease of 11% in new in-state and 19% in new out-of-state undergraduate and graduate student enrollments, equivalent to an $18.7 million loss in revenue. Returning graduate student losses are projected to be 4% for in-state and out-of-state students, equivalent to a $1.6 million loss in tuition revenue.
• A decrease in research activity is projected to result in a $16 million hit to Facilities & Administrative Expense Recovery.
• Reduction in activities associated with departmental sales and service, summer programs, camps, and conferences is projected to result in a $14.1 million loss in revenue.
The UA has already seen an estimated $7.1 million in new expenses related to the COVID-19 outbreak and Robbins anticipates significant investments in fiscal year 2021 for testing, tracing, and isolation.
"We are not alone in these challenges," Robbins wrote in his email. "Colleges and universities across the nation are facing similarly difficult circumstances, including large drops in tuition revenue, and many are taking major steps in response. Together, we can—and we will—overcome these challenges and flourish as a world-class institution of higher education and research. Together, our compassion, our adaptability and our determination will propel us forward."
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