{"id":67614,"date":"2019-05-03T08:35:03","date_gmt":"2019-05-03T12:35:03","guid":{"rendered":"http:\/\/webapp2.wright.edu\/web1\/newsroom\/?p=67614"},"modified":"2024-01-04T15:10:37","modified_gmt":"2024-01-04T20:10:37","slug":"ddn-wright-state-avoids-state-fiscal-watch-after-increasing-reserves","status":"publish","type":"post","link":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/2019\/05\/03\/ddn-wright-state-avoids-state-fiscal-watch-after-increasing-reserves\/","title":{"rendered":"Dayton Daily News: Wright State avoids state fiscal watch after increasing reserves"},"content":{"rendered":"

Excerpt<\/strong><\/em><\/p>\n

\"\"Wright State will avoid state fiscal watch, state documents show, but school leaders warned the university has work to do before it\u2019s financially in the clear.<\/p>\n

\u201cWe still have a lot of work left to do, but that\u2019s certainly an indication \u2014 a very, very good indication \u2014 that we\u2019re headed in the right direction,\u201d said Walt Branson, chief business officer and vice president of finance operations. \u201cWe had to make some tough choices along the way that had some impact, but really we are on a trajectory for recovery right now.\u201d<\/p>\n

Wright State received a score of 2.2 out of five in fiscal year 2018 on Ohio\u2019s \u201cSenate Bill 6\u201d scores, the state\u2019s way to measure every public college\u2019s 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.<\/p>\n

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.<\/p>\n

WSU has overspent from its reserve, or rainy-day fund for years. Now it needs to rebuild, said Doug Fecher, WSU\u2019s Board of Trustees president.<\/p>\n

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.<\/p>\n

The cuts were a cultural change, Branson said. Before if there wasn\u2019t enough money in a department\u2019s budget to take on an initiative, the reserve funds would be used.<\/p>\n

\u201cWhen you\u2019re in this changing environment \u2014enrollment goes down, a program closes, or demand ceases or something like that \u2014 you rely on your reserves to build back revenue in other areas\u2026Without those reserves, we just didn\u2019t have the flexibility,\u201d Branson said.<\/p>\n

Wright State\u2019s score also boosted because for the first time since 2011, the university showed a positive balance, meaning the university didn\u2019t spend more than its revenue, he said.<\/p>\n

This year the university is expecting to add $6 million to the reserve, double the $3 million the Board of Trustees asked for in its oversight, Branson said.<\/p>\n

That would bring the total spendable dollar value in WSU\u2019s reserves to somewhere between $30 million and $40 million. A good rule of thumb nationally is to have about 25 percent of the total operating budget of a university in the reserve, Branson said.<\/p>\n

About 25 percent of Wright State\u2019s $276 million operating budget would be about $69 million, which could take about five to 10 years to secure, Branson said.<\/p>\n

View the entire original story at daytondailynews.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Excerpt Wright State will avoid state fiscal watch, state documents show, but school leaders warned the university has work to do before it\u2019s financially in the clear. \u201cWe still have a lot of work left to do, but that\u2019s certainly … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":21,"featured_media":44532,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[730],"tags":[],"class_list":["post-67614","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wright-state-in-the-news"],"_links":{"self":[{"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/posts\/67614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/comments?post=67614"}],"version-history":[{"count":2,"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/posts\/67614\/revisions"}],"predecessor-version":[{"id":145627,"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/posts\/67614\/revisions\/145627"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/media\/44532"}],"wp:attachment":[{"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/media?parent=67614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/categories?post=67614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/webapp2.wright.edu\/web1\/newsroom\/wp-json\/wp\/v2\/tags?post=67614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}