Financial Impact of COVID-19

We recently shared our cautious optimism and expectation that our students will return to campus for fall 2020 to resume residential instruction. We are determined, like so many of you, that we enable this to happen safely. While many in our community are working to develop plans for various fall opening scenarios, we are also dealing with the financial realities that have resulted from the COVID-19 pandemic. This global crisis has put unprecedented financial stress on almost all people and organizations, including here at Syracuse. In recent years, we have been preparing for the impact of unforeseen events such as this. As a result, we find ourselves in a stronger position than many of our peers. Still, we must take into account the shifting economic realities facing our university.

In the few short months since our response to COVID-19 began, the University has experienced more than $35 million in unplanned expenses and unrealized revenue. While there are many unknowns for the coming year, we can realistically expect further and significant financial challenges ahead. We must take action that allows the University to continue delivering on its mission while at the same time securing our financial future. These actions are difficult because they affect our university’s most treasured resource—our people.

Here are actions we are taking, aimed at ensuring that Syracuse University continues on a trajectory of academic, research, and inclusive excellence during and beyond the COVID-19 health emergency:

·         Senior Leadership Compensation Reductions: Each of the three of us will volunteer a 10 percent reduction in compensation for fiscal year 2021, as will members of the Chancellor’s Council (including vice chancellors, senior vice presidents, and deans) and our athletics director and coaches in football, basketball, and lacrosse. The funds generated through this measure will be specifically reallocated to support students, faculty, and staff who are particularly impacted by the current situation.

·         Faculty and Staff Salary Freeze: There will be no merit increases for faculty and staff for fiscal year 2021. Employees in bargaining units will receive pay as directed by contracts.

·         Temporary Hiring Freeze for Non-Essential Staff Positions: We are pausing Universitywide hiring for all permanent and temporary non-essential staff positions until further notice. This action allows us to focus on sustaining and supporting our current faculty and staff. Replacement and new staff positions deemed mission-critical will be reviewed and approved consistent with our existing hiring practices.

·         Cost Reductions: In partnership with leadership, deans, directors, and department heads, we are implementing a 5 percent cost reduction across all administrative, academic, and auxiliary units and focusing our funds in support of our people and our academic mission. Leadership in each unit, working with us and with the budget office, will assess how to appropriately achieve these savings in each area.

·         New Capital Projects Work: All new capital projects are currently on hold, with the exception of those already underway such as the Stadium improvements, those deemed mission-critical to the academic priorities of the University, or projects that include regulatory, compliance, and/or safety components.

In the spirit of shared governance, we will work with leaders from across the University as we implement these changes and consider others as the situation evolves. Through all this, we are determined to continue making strategic investments that support and advance our academic priorities, including in mission-critical hires (inclusive of faculty), in commitments to enhance diversity and inclusion, and in robust programs aimed at post-traditional students.

We recognize and acknowledge the shared sacrifice that is being asked of our community. It is in working together that we will emerge stronger in the face of this challenging time. You can expect additional details in the days and weeks to come. Many thanks, and please be safe.

Sincerely,

Kent Syverud
Chancellor

John Liu
Interim Vice Chancellor and Provost

Amir Rahnamay-Azar
Senior Vice President and Chief Financial Officer