Robust budget

The board enthusiastically approved a “mathematically and strategically balanced” budget for the 2022-2023 fiscal year. Dan Durbin, executive vice president for finance and administration, presented a budget proposal, which was introduced at the May 2022 budget workshop. At $1.5 billion, the FY 2022-23 budget is the largest in the university’s history.

“Our university’s budget should be a manifestation of our institutional values and priorities,” said Interim University President Lori Stewart Gonzalez. “This budget is comprehensive, transparent, addresses our university’s main priorities – our students, employees and community – and points directly to targets outlined in our strategic plan.”

The budget allows for a 0.0% tuition increase for undergraduate students and the development of a new Cardinal Commitment financial aid program that will supplement other forms of financial aid to help ensure full cost of tuition for resident Pell-eligible students.

There will, however, be a $65 per semester increase in fees to help fund the university’s match for the state’s $81 million in asset preservation dollars which will be used for the ongoing improvement of conditions and safety of classrooms, buildings and infrastructure. An additional $10 per semester fee will support student programming and the Disability Resource Center. The total $75 increase is reduced from an earlier $100 proposal in response to a request from the Student Government Association. The increase is the second smallest year-to-year increase in 21 years.

Commitments to increased student persistence funding and graduate student stipends are also among the financial priorities. The next fiscal year will also see the opening of two new residence halls, the Center for Engaged Learning and the Center for Military-connected Students.

Salary increase included

The big news for employees comes in the form of a 2.5% cost-of-living (COLA) increase effective July 1. Employees will see that increase reflected in their July paychecks. Medical school clinical faculty, who are not eligible for the COLA increase, will receive a one-time bonus — $3,000 for full-time and $1,500 for part-time faculty. Further, minimum starting wages for hourly employees will increase to $14.75. Opportunities for wage increases will be identified in the compensation and total rewards study, which is currently underway.

According to Durbin, good returns on UofL Foundation investments also contribute to the robust budget and the university’s solid financial footing.

A copy of the university’s 2022-23 budget is available .

Focus on the future

In her report, Gonzalez provided an update on the development of the university’s next strategic plan. With implementation to begin in the fall 2022 semester, the plan is currently undergoing reviews and receiving feedback from the university’s key internal and external stakeholders. The UofL community will have the opportunity to review the plan and submit feedback on the strategic plan until mid-July.

Gonzalez said that the ongoing cycle of a three-year plan (the previous strategic plan ran from 2019 to 2022) prompts immediate work toward institutional goals.

“UofL exists to transform lives, not just the lives of our students, but the lives of the society they will serve after graduation,” said Gonzalez.

Presidential search update

Trustee Raymond Burse provided a report on the search for the university’s next president. The search committee has retained the consulting services of WittKieffer to assist with search efforts. Burse reported that several internal and external constituencies have already provided valuable insights on the qualifications and qualities necessary to lead UofL. A leadership statement is in the final stages of development and will be ready to share with potential candidates in early July. This statement as well as other resources and information will be available on the presidential search .

Student leadership

The June committee meeting was the last for outgoing SGA President Ugonna Okorie. Following her recent graduation, Okorie, who majored in public health with a minor in health care management, will continue her studies at Johns Hopkins University in Maryland. Of her service as president, Okorie said that she, along with the other SGA representatives, are proud of their work toward reshaping SGA culture to allow for greater accountability, pushing for progress and anti-racism initiatives.

“Ugonna has been a huge advocate for our student population, and she has an incredible work ethic,” said Board Chair Mary Nixon. “We are so grateful for the work she has done on behalf of the university.”

Dorian Brown, a communications major and Phi Kappa Tau member, is the 2022-23 SGA president and will serve as the student constituency representative on the Board of Trustees beginning July 2022.

The next meeting of the University of Louisville Board of Trustees will take place Friday, July 15, 2022. See the for Board of Trustees updates, information, meeting minutes and more.

Interim President Lori Stewart Gonzalez said next year’s budget priorities are both mathematically and strategically balanced and correlate to action plans outlined in the university’s 2019-2022 strategic plan.

“We are investing in the things we value the most – our students, our faculty and staff and our university,” said Gonzalez. “We strove to develop a budget that reflects our values and what our community thinks is important to institutional success.”

The FY 2022-23 proposed budget accounts for a 0.0% tuition rate increase for undergraduate students and the development of a new Cardinal Commitment financial aid program that will supplement other forms of financial aid to help ensure full cost of attendance for resident Pell-eligible students. Commitments to increased student persistence funding and graduate student stipends are also among the financial priorities. The next fiscal year will also see the opening of two new residence halls, the Center for Engaged Learning and the Center for Military-connected Students.

Even with a $110 proposed student fee increase, UofL’s tuition, fees and housing are less than or consistent with such costs at other universities throughout Kentucky. Dan Durbin, executive vice president for finance and administration, noted that $100 of the student fee increase was necessary to help fund the university’s match for the state’s $80 million of asset preservation dollars and ongoing improvement of conditions and safety of classrooms, buildings and infrastructure. An additional $10 will support student programming and the Disability Resource Center. He added that the proposed fee increase was vetted through the Student Government Association.

Compensation and benefits are the investments earmarked for faculty and staff. If the budget is approved, a cost-of-living salary increase of 2.5% will take effect July 1, 2022. The minimum starting wage for regular full-time and part-time staff will also increase to $14.75 per hour with efforts underway to further increase that to $15 per hour by early 2023. The budget also continues the current employer retirement contributions (7.5% automatic, plus 2.5% match) and 100% tuition remission for employees and dependents. Further, employee health insurance premiums will be frozen for the first half of the fiscal year.

Investments in the university itself remain budgetary priorities. Improvements, such as the Digital Transformation Center, web improvement project, deferred maintenance and a new customer relationship management system for Advancement, are among budgetary priorities that will help continue the university’s external image and effectiveness. Fueled by the spirit of the new Here & Beyond brand campaign, investments in the university’s community resources, such as UofL Health and the Christina Lee Brown Envirome Institute, will showcase UofL as a premier metropolitan university.

According to James Begany, vice provost for enrollment management and student success, even in the face of declining enrollment figures nationwide, UofL remains steady in its enrollment performance. Efforts to monitor and prepare for future trends in enrollment continue, and several growth and contingency planning strategies are built into the proposed budget.

Revisions to the proposed operating and capital budgets will be made based on feedback from the university trustees. The board will then formally consider the budget at its June 23 meeting with implementation of the 2022-23 operating and capital budgets to begin July 1.

Durbin emphasized that input from faculty, staff and students was essential to developing the proposed budget. As an example of that buy-in, Durbin noted how he and Interim Provost Gerry Bradley have been meeting with every university dean to assess the financial situation of each of their units. He said these meetings have been productive and feedback has been valuable.

“Engagement and accountability are keys to the positive financial performance of our university,” said Durbin. “This budget is not the work of just a few people. This is a product of our university community’s commitment to success.”