Financial impact on Winthrop from COVID-19 potentially ‘in the millions’

Winthrop University Interim President George Hynd told the board of trustees that the university could experience a $7 million financial impact, according to a recent press release.

According to the release, “[t]hat amount includes loss of revenue from events, potential reduction in fees to students and unexpected expenses to move courses online.”

“With the majority of students having vacated the residence halls for the semester about $3.8 million would be for housing and dining reductions in fees,” Vice President for Finance and Business Affairs Justin Oates said, according to the release.

The press release outlined other costs that have arisen. The university spent nearly $20,000 to bring “all but two” students who are studying abroad back home. The press release noted that those two students made the decision to “continue their studies” despite the recall. Furthermore, “[m]ore than $1 [million] has been spent [as of April 3] on costs related to technology to support remote instruction and working from home,” according to Hynd.

According to the press release, the board of trustees authorized “an immediate, temporary hiring freeze that covers certain vacant, state-funded positions until further notice.” Hynd was authorized to “implement an immediate budget freeze until further notice in order to reallocate needed funds toward technology and security needs related to online instruction, remote work, admission, campus safety, and other needs at the discretion of the president.”

According to an email provided to The Johnsonian which laid out the freeze in greater detail, “[i]n order to help control spending, [effective as of April 3], all expenses will require approval by the vice president or dean of each responsive unit on campus. In addition, all expenses over $5,000 will require additional approval by the CFO or AVP of Finance.”

In terms of the hiring freeze, the email noted that the positions that are affected by the freeze are regular full-time equivalent staff, non-instructional academic employees and new temporary hires.

The email goes on to say that “[r]are exceptions” could potentially be granted “for the purposes of compliance, or other required and essential personnel necessary to sustain the safety and security of the campus and to perform daily operations and services deemed to be essential to the critical mission of the university.”

Guy Reel, chair of the department of mass communication, said that the situation is having a “ripple effect” across campus.

“In the department of mass communication, we had to suspend our search for a new assistant professor because of the budget uncertainties,” Reel said. “That’s unfortunate, but we hope we can appoint some professionals from the field to serve as adjuncts and continue to help our students as we adjust to these circumstances.”

The email that was provided to The Johnsonian regarding the freezes of budget and hiring said that “[s]pecial provisions” will apply to some types of positions. 

“Federal Work Study, student employees and graduate assistants/associates/graduate student workers are not subject to the hiring freeze; however, no new funding allocations will be made to support student employment,” the email said.

Other positions subject to the special provision include “[i]nstructional full-time, part-time and adjunct faculty” who are hired to teach classes as well as grant-funded positions “provided the funding source is not between grant and university funds.”

 

Graphic: Maggie Claytor/ The Johnsonian

By Matt Thrift

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