The University of Akron will have to dip into its reserve funds to get through the new fiscal year beginning July 1.
The University of Akron Board of Trustees on Wednesday approved the general fund budget of $358 million through June 30, 2017.
The budget will use $18 million from the university’s reserve funds because projected operating expenses are expected to exceed operating revenues. The reserve fund currently stands at $243 million.
The budget has an emphasis on cost control but doesn’t include any faculty or staff layoffs, according to the trustees.
The budget takes into account that the projected total enrollment decline will result in the loss of $20 million. Last year’s general fund budget was $377 million.
University officials said a projected $7 million is expected to be taken from the reserve funds for this fiscal year, which ends June 30. The university originally had not projected a need to tap its reserves this year.
Meanwhile, UA trustees and administrators indicated they will continue discussions with faculty leaders for input into a more permanent operating plan.
The board met in executive session for five hours on personnel matters involving appointments and compensation and litigation on a lawsuit involving the university.
There was no public discussion by the board about its search for a replacement for Scott Scarborough, who stepped down as president late last month amid protests over his leadership.
Wednesday’s meeting was the first time in nearly a year that there were no protests outside a regular trustees board meeting.
Changes on board
In other action, the board passed a resolution of appreciation for outgoing board chair Jonathan Pavloff for serving on the board from 2011 to 2016. His term ends on July 1. Roland Bauer was elected by the board to serve as the new chair. The vice chairs will be Olivia Demas and Ralph Palmisano. University General Counsel Ted Mallo was elected secretary of the board and M. Celeste Cook, associate vice president and deputy general counsel, was elected assistant secretary.
The trustees approved promotion, tenure or both to 37 faculty members.
The board also approved extending the ability of part-time staff members to pass their benefit of taking a free course for up to three credits at the university to an eligible dependent. The university already has the same policy in place for part-time faculty members. In the past, staff members were only eligible to take a free class, not their family members.
Also, formal bylaws were established for University Council, a group of UA faculty and staff representatives that makes recommendations to the board.
The council will be able to have input on the budget, facility planning, talent development and health and wellness initiatives, said Harvey Sterns, a professor who chairs the group.
The next regular meeting of the Board of Trustees is scheduled for Aug. 10; board committees will meet on Aug. 1.
Marilyn Miller can be reached at 330-996-3098 or mmiller@thebeaconjournal.com.