Excerpt from the Dayton Daily News
Wright State will avoid state fiscal watch, state documents show, but school leaders warned the university has work to do before it’s financially in the clear.
“We still have a lot of work left to do, but that’s certainly an indication — a very, very good indication — that we’re headed in the right direction,” said Walt Branson, chief business officer and vice president of finance operations. “We had to make some tough choices along the way that had some impact, but really we are on a trajectory for recovery right now.”
Wright State received a score of 2.2 out of five in fiscal year 2018 on Ohio’s “Senate Bill 6” scores, the state’s way to measure every public college’s fiscal health, according to state documents. The rating from 0 to 5 is based on three parts: the schools reserve fund, its ability to service its debts and its income ratio.
In fiscal year 2017, the university’s score was 0.8. Two consecutive years of a score below 1.75 puts universities on state fiscal watch, which requires strict oversight and a recovery plan submitted to the Ohio Department of Higher Education.
WSU has overspent from its reserve, or rainy-day fund for years. Now it needs to rebuild, said Doug Fecher, WSU’s Board of Trustees president.
The board asked Wright State leaders to add $6 million to the reserve in fiscal year 2018. The university was able to come up with $10 million by cutting expenditures in 2018 by $53 million compared to the previous year. The administration asked departments to cut operating budgets for non-personnel items, limited travel and put processes in review that required high-level approval to fill positions.
The cuts were a cultural change, Branson said. Before if there wasn’t enough money in a department’s budget to take on an initiative, the reserve funds would be used.
Wright State’s score also boosted because for the first time since 2011, the university showed a positive balance, meaning the university didn’t spend more than its revenue, he said.
