Financial Impacts Fall 2020

Thank you everyone for your hard work, understanding and resilience during this time of COVID-19. Your progress and dedication to working and teaching remotely have been commendable. I would like to give a special thanks to those who have been on our campuses in order to teach or serve our students while following the strict Return to Campus guidelines. I know it has not been easy, and you have done a wonderful job.

We have witnessed that no industry or individual is immune to this crisis. Higher education is a particularly volatile industry, regardless of the pandemic. Our leadership prepares for factors that could negatively impact the University, but this pandemic was not something we could have expected to this extent. We continue to adjust the way we operate in order to run Roosevelt in a sustainable way, providing students with the best education.

The Building a Stronger University plan includes assessing operations on an ongoing basis in order to create efficiencies, reduce debt, increase enrollment and, most importantly, find opportunities to invest in the delivery and experience of a Roosevelt education. All departments are taking these actions as regular practice, especially during this uncertain time. We are reviewing all areas of the University, including personnel, employee services, real estate and academic programs, and finding ways for more collaboration, shared responsibilities and new revenue streams.

Enrollment and Budget Shortfalls

Similar to universities across the country, Roosevelt’s operations and enrollment have been adversely affected due in part to COVID-19. In fact, Illinois Governor Pritzker recently asked state agencies to prepare for budget cuts as Illinois continues to report more COVID-19 cases on a daily basis. The environment we are all facing is unpredictable and ever changing.

While total fiscal year 2021 enrollment exceeded last year’s enrollment, it was short of the projected budget. In addition, we have lost other sources of revenue, from conference services to on-campus housing, and dining services.

As you know, we implemented certain actions due to the financial impacts of the pandemic in May 2020 to prevent the FY20 deficit of $4.7 million from increasing. After looking at the long-term impact of the COVID-19 virus and the shortfall on enrollment, it was decided that more measures needed to be taken immediately for a balanced budget in fiscal year 2021. There were several actions that were implemented, including reducing the overall employee staff base by a small percentage across all departments. The impacted employees were notified over the past three weeks. This reduction includes not filling open positions and offering early retirement for those who qualify.

As part of the Building a Stronger University plan, specifically to address the fiscal situation, we will be reviewing contracts with outside suppliers and vendors, leveraging real estate properties, temporarily suspending the professional development program (except for mandatory trainings) and monetizing underutilized assets. There will be more cross-functional collaborations, creating best practices and reducing or integrating departmental services.

Commitment to Excellence and Mission

Creating new revenue sources and academic programs is of high priority. We recently announced partnerships with Columbia College Hollywood (CCH) and Urban Prep Academies of Chicago, leasing them space on our Loop campus. CCH students will also be taking some of our general education courses, and RU students will be able to take courses in cinema, visual effects and recording arts. Roosevelt continues to develop new, innovative academic offerings as a result of the integration of Robert Morris that support retention and recruitment. Additionally, Advancement has been very successful over a short period of time with fundraising efforts that support student emergency assistance, tuition grants and scholarships.

Roosevelt University’s promise to students is to provide an excellent education and prepare them for their future careers. I am proud, especially in these times, of our legacy and dedication to academic excellence, student success, social justice and engagement with the campus’s communities and around the globe. Our students will be the fundamental building blocks of the future, economically, socially and politically. I believe we are providing them the tools and experiences they need to be successful, regardless of what areas of interest they want to pursue.

Please reach out to me if you have any questions or comments. You can read the Financial Impacts FAQ on the COVID-19 website. I’m asking everyone to always review the COVID-19 and BASU communications and monitor the websites to stay up-to-date on regular, critical information related to Roosevelt.

I will continue to reiterate how very humbled and proud I am of everyone’s accomplishments and hard work. While the University is adapting and shifting the way it operates as a result of short-term and long-term impacts, our mission is the guiding principle, and our goal will always be to provide the best quality education and experience for our students. Roosevelt was built on breaking down barriers and surviving through the worst of times and coming out stronger. This is who we are and always will be.

I’m planning to host a virtual town hall on Wednesday, October 14 at 1:30 p.m. for all students, faculty and staff. I hope everyone is able to join. Details will be communicated in the near future.

With warm regards, Ali R. Malekzadeh, Ph.D. President

With Warm Regards,

Ali R. Malekzadeh, Ph.D.
President