Dive Brief:
- Marquette University, in Wisconsin, intends to cut $31 million from its operating budget by fiscal 2031, amid increasing economic and demographic pressures.
- In a Monday announcement, officials at the private Jesuit institution said the reductions are intended to proactively keep it viable "rather than having our future decided for us by outside forces." Marquette said it intends to begin the process by cutting $11 million from its fiscal 2026 operating budget.
- The university will form a committee of faculty, staff and administrators to recommend where the budget can be cut. The group is to present its findings to Marquette's trustees in December, and implementation is set to begin in the spring.
Dive Insight:
Marquette officials Monday stressed that the university is in a "strong financial position." But it's being hit by two factors affecting colleges across the country — rising costs and fewer traditional-aged college students.
The university enrolled 11,167 students in fall 2022, according to federal data, down 5% from 11,749 students a decade earlier.
The drop, while not dramatic, comes as the higher education sector is bracing for worsening enrollment woes. The so-called demographic cliff — a projected decline in high school graduates — is expected to start next year as a result of dropping birth rates following the Great Recession.
In a letter to university colleagues, Marquette President Michael Lovell, along with the chairs of the university's staff and academic senates, said the students who do enroll tend to need more financial support than in years past.
"The reality is that while tuition sticker prices have risen over the last decade, market-driven increases in financial aid awards to students have resulted in limited growth for overall net tuition revenue relative to rising costs and significant inflation," they wrote.
Marquette relies on revenue stemming from tuition and room and board for almost three-fourths of its operating revenue, the letter said.
The projected $31 million in cuts would represent a 7% reduction in Marquette's operating budget by FY31. Over 40% of that funding will be reinvested in the university, it said this week.
The announcement did not address if the cuts would lead to layoffs or reduced academic programs.
The university did not immediately respond to request for comment Tuesday.
