Despite a slight drop in enrollment, Winthrop University is on target to meet this year's budget.
University President Anthony DiGiorgio told members of the executive committee Wednesday morning that state revenue projections are "fairly stable," which means the university will likely receive the funding it expects from the state unless there are unforeseen reductions.
The outlook for this academic year has improved from years past, when the state reduced funding to state colleges and universities several times throughout the year.
The university expects a slight drop in revenue from tuition and fees due to "modestly" lower enrollment numbers resulting from last year's unusually large graduating class, DiGiorgio said.
By May 2010, more than 800 students graduated, about 100 more than in 2009, according to university records.
The loss should not be a problem, DiGiorgio said. Exact revenue numbers won't be determined until enrollment figures are finalized in the coming weeks. The university will offset the reduction by drawing from a reserve fund.
"The basic point is, I think we will have sufficient reserves to make up for any net-tuition-revenue decline associated with enrollment," he said.
The next academic year is a different story, DiGiorgio said.
The university is preparing to lose more than $3 million when federal stimulus funds expire next year. It is difficult to predict the level of future state funding.
For the 2010-2011 academic year, the university increased tuition about 5 percent, following slight increases in room and meal plan rates. The boost helped make up for state budget cuts.
"Next year will likely be the most difficult academic year that we have had to face," DiGiorgio said. "With stimulus going away, there's nothing on the horizon that says that hole is going to be filled in any kind of way."
Dealing with projected losses will be the focus of the Board of Trustee's retreat in February.