Ohio State anticipates losing around $300 million in revenue due to pandemic
Ohio State University President Michael Drake says the school is estimating a loss of nearly $300 million during the 2020 fiscal year due to the COVID-19 pandemic. He sent out a message on the matter on Tuesday, according to Eleven Warriors.
Due to the substantial loss in revenue, the school is planning to implement a hiring freeze, put a pause on some projects and could also enact furloughs.
“Due to the uncertainty, we are unable at this time to present a budget for the full fiscal year or project additional needed cost savings beyond July and August,” Drake said in the message. “Overall, we anticipate that the upcoming fiscal year will present further budgetary challenges due to COVID-19. We are planning for multiple scenarios while working to maintain and advance teaching, research and patient care. As shared, we have asked all colleges and support units to prepare a range of budget projection scenarios for FY21, including potential 5%, 10% and 20% reductions in spending. Individual units across the university are being given the flexibility to manage these budget reductions in a way that meets their goals and objectives.
“Any furloughs in the future would be carefully and transparently considered and would be based on the budgetary circumstances and planning of individual units and the university as a whole,” Drake said. “Under the proposed policy, the Board of Trustees would have to approve the implementation of a university-wide furlough plan.”
Ohio State has not yet officially determined whether it will have on-campus classes in the fall. However, student-athletes are expected to return to Columbus for voluntary team activities beginning on June 8.