2024-10-08
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Drexel University Identifies $80 Million in Cost Cuts to Address Deficit
Exploring Drexel's Strategies for Financial Sustainability
Drexel University Identifies $80 Million in Cost Cuts to Address Deficit
Drexel University has experienced a $22M deficit, attributed to an enrollment decline linked to the rollout of the new Free Application for Federal Student Aid. The university's executives, Interim President Denis O'Brien, Chief Operating Officer Helen Bowman, and Provost Paul Jensen, have emphasized the need to reduce expenses, grow revenue, and improve administrative efficiency. They cited a structural imbalance of 10% of the university's operating budget, which they attributed to factors facing the entire higher education sector, including declining enrollments, rising costs, increased institutional aid, and spending on student support services. To address the financial woes, Drexel has identified $80 million in cost cuts, including from administrative and academic budgets for fiscal 2025. The university will continue its pause on nonessential hiring, spending, and travel, and is planning to consolidate administrative services and space. They also suggested monetizing parts of its real estate portfolio. Drexel has faced an eventful year beyond finances, including lockdown over a pro-Palestinian protest encampment, an investigation over harassment of Jewish students, and the integration of Salus University.
