The designation requires the university to develop a financial recovery plan in addition to other measures designed to stabilize and improve the financial outlook of the university, such as increased financial reporting requirements, board of trustee engagement and evaluation by the state auditor, according to a statement from Chancellor Mike Duffey of the ODHE.
The remaining 12 employees let go were full-time staff, the university said.
“This was not an easy decision, and we deeply value the contributions of all impacted employees,” said Central State president Morakinyo A.O. Kuti. “Our priority remains supporting our students and maintaining academic excellence as we navigate this difficult period.”
The university implemented a reduction in force as part of a broader strategy to reduce the school’s deficit. Other strategies to move the university beyond its current fiscal state include identifying new revenue streams, recruiting more students and reducing other operational expenses, according to the university.
The faculty positions that were cut were negotiated with the American Association of University Professors and the administration, according to a statement from the university.
“Through this process, we are working to ensure that the educational experience of our current and incoming students is not impacted,” the university said. “The University remains committed to maintaining academic excellence.”
The university declined to release specific details about which jobs were cut.
Affected employees have access to the university’s employee assistance program, the university said, including counseling, job resources and more.
“Central State University is committed to long-term financial sustainability through strategic cost-saving measures, new revenue opportunities and enhanced student recruitment efforts,” the university said in a statement.
Kuti assumed the role of president in July. Soon after he took office, he began reviewing the university’s finances, and was “unsatisfied” with what he found, including that Central State was not paying certain vendors on time, and the university’s 2023 audit had not been completed.
Additionally, enrollment online has been plummeting. Central State University had a 54% increase for students, both undergraduate and graduate, according to the Ohio Department of Higher Education data, from last school year to this fall, but the university saw a decline in overall enrollment due to an online-only program ending this year, said Amy Hobbs, interim provost at Central State University. Enrollment at the campus in Wilberforce near Xenia was flat.
The state’s designation also requires the university to develop a financial recovery plan, as well as comply with increased financial reporting requirements.
The Dayton Daily News previously reported that the university had a $5.2 million shortfall in revenue in September, which led them to adjust their annual budget from $65 million to $60 million.
There were three monthly payments the school could not make regularly. Those payments were for facilities management, from about $30,000 to $160,000 per month; student services, from about $18,000 to $150,000 per month; and systems management, from $25,000 to $73,000 per month.
Additionally, Central State’s enrollment has plummeted from 6,044 students in the 2021-2022 academic school year to 2,719 students this year, per the Ohio Department of Higher Education.
