2024-10-03
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Despite Donations, Scalia Law School Struggles to Break Even
The Impact of Philanthropy on Higher Education Sustainability
Despite Donations, Scalia Law School Struggles to Break Even
Enrollment at the Antonin Scalia Law School has declined significantly from recent peaks while costs have increased. George Mason’s law school has landed some high-dollar, high-profile (and controversial) donor gifts over the years, including $30 million that led to naming it after the conservative Supreme Court Justice and $50 million in 2019 from the estate of a former judge.
The Scalia law school could use more multimillion-dollar gifts now as it struggles to rein in its operating deficits.
For fiscal 2024, the law school logged a $7.8 million deficit and is projecting a $13.2 million deficit for 2025. And that’s after posting annual deficits of between $3 million and $5.8 million each year going back to fiscal 2020.
In 2024, tuition revenue declined about 5.8% to $23.5 million while expenses rose by more than $1 million from the prior year. For 2025, the school projects an even steeper tuition revenue decline.
A proposal shared with the law school dean calls for discharging a $4 million loan to the school in equal increments over three years, as well as spending to cover tuition discounting and operating expenses.
The above is contingent on the law school breaking even financially at the end of each fiscal year, as well as its ability to grow its revenue outside its J.D. program, reduce operating costs or increase fundraising, according to the memo to George Mason’s board.
The memo also noted that the school enjoys a “substantial degree of autonomy, with the ability to set tuition rates — with the university board’s approval — as well as make decisions on admissions, enrollment targets, discounting strategy, curriculum and facilities.
The law school has in recent months received $7.6 million in donor gifts, including $5.6 million for its Law and Economics Center’s educational programs for lawyers and judges.
The Scalia law school could use more multimillion-dollar gifts now as it struggles to rein in its operating deficits.
For fiscal 2024, the law school logged a $7.8 million deficit and is projecting a $13.2 million deficit for 2025. And that’s after posting annual deficits of between $3 million and $5.8 million each year going back to fiscal 2020.
In 2024, tuition revenue declined about 5.8% to $23.5 million while expenses rose by more than $1 million from the prior year. For 2025, the school projects an even steeper tuition revenue decline.
A proposal shared with the law school dean calls for discharging a $4 million loan to the school in equal increments over three years, as well as spending to cover tuition discounting and operating expenses.
The above is contingent on the law school breaking even financially at the end of each fiscal year, as well as its ability to grow its revenue outside its J.D. program, reduce operating costs or increase fundraising, according to the memo to George Mason’s board.
The memo also noted that the school enjoys a “substantial degree of autonomy, with the ability to set tuition rates — with the university board’s approval — as well as make decisions on admissions, enrollment targets, discounting strategy, curriculum and facilities.
The law school has in recent months received $7.6 million in donor gifts, including $5.6 million for its Law and Economics Center’s educational programs for lawyers and judges.