DENVER (CBS4) – The chancellor at the University of Denver announced major cutbacks in an email to staff this week. The school expects a $45 million shortfall in its 2020-2021 budget due to the coronavirus pandemic.
DU plans to lay off 38 staff members and begin temporary salary reduction in August for those with salaries of higher than $90,000. Chancellor Jeremy Haefner called the changes “difficult but necessary.”
There could also be temporary cuts to retirement benefits.
The university has already put other cost cutting measures in place, such as reduced travel and a hiring freeze.
“Our largest losses this next fiscal year will result from the loss of room and board revenue due to required dedensification efforts, cancellation of ticketed events and youth programs in athletics, loss of parking revenue, cancellation of summer conferences and events, temporary closure of the Newman Center for the Performing Arts, the loss of interest income that ordinarily supports our working-capital budget, and reductions to the value of our endowment,” Haefner wrote. “Our largest new expenses related to COVID-19 include those related to testing and contact tracing; increased cleaning and disinfection of our residences, classrooms and workspaces; new technology costs related to online instruction and course supports; and of course, emergency financial aid for many of our families experiencing significant financial loss.”