Dear fellow Clemson employee:
As we navigate the uncharted waters presented by the current global pandemic, we face a significant economic disruption, which has led to a sharp decline in business activity across the state and nation. Clemson has not been immune from this downturn, and our team is working daily to develop plans and strategies to lead our University forward.
University leadership recently informed the Board of Trustees the pandemic is expected to have at least a $22 million impact on the university this fiscal year from lost revenue and added expenses. Likewise, fiscal year 2020-21 is almost certain to be challenging from a financial perspective.
Our goal is to reopen in the fall to as close to a “normal” on-campus experience as possible, and a significant amount of work – being led by members of the Emergency Operations Center team – is being done now to formulate a range of recommendations regarding the fall semester. Those recommendations will balance our strong desire to return to campus in the fall with the latest data and science behind the pandemic. Our first priority remains the health and wellbeing of our students, employees and community members.
We also have begun planning for a near-term financial outlook that could be significantly affected by potential changes in enrollment and a decline in auxiliary revenue should we be forced to continue with online instruction into the fall. That planning involves multiple scenarios based on the future length and severity of the pandemic.
Fortunately, Clemson entered this unprecedented period with a strong financial foundation, in large part due to the efficiency with which we operate and the incredible growth we have seen in fundraising over the past several years thanks to the generosity of our donors. Even with a full return to campus and a strong student base, however, our revenue outlook for the next fiscal year is going to be challenged.
As you may know, our Board of Trustees voted to freeze tuition for all students next year, which was absolutely the right decision given the economic hardship facing many of our students and their families. Additionally, the prospects for state support remain uncertain given the economic damage the pandemic has done to South Carolina.
The Board also approved a preliminary budget for next fiscal year that freezes overall spending at current levels and the administration already has instituted a hiring freeze and begun reducing costs in other areas.
Still, prudence demands that we plan for a future where further cost reductions are necessary in the hope we never need to implement those plans.
Our employees are Clemson’s most valuable asset. At the same time, personnel represent the University’s single largest budget item, and it is impossible to plan for significant expense reductions without at least exploring the option of reducing personnel costs.
To be clear, University leadership has no plans at this time to furlough employees or otherwise reduce staff beyond the hiring freeze already in place, although a provision in the proposed state budget would give universities additional flexibility to issue furloughs as result of the pandemic.
Indeed, we have several “levers” we can pull to reduce costs – from personnel to discretionary spending to administrative and academic programming – and we intend to look closely at all of them. We felt, however, it was important to share the fact that all options must remain on the table as we plan for multiple scenarios, including a worst case scenario, that still allows Clemson to provide a world-class education for its students and continue to serve the citizens of South Carolina.
We can’t thank everyone at Clemson enough for the hard work and commitment to our students – and to one another – that you have shown during this very difficult period. The fact we moved quickly to quality online instruction in a manner that allowed our students to continue their academic journeys this semester is an example of the Clemson spirit at its best.
We’re going to get through this together, and University leadership is committed to keeping everyone informed as this situation continues to evolve.
Thanks again for everything you do for Clemson. We are proud to call each and every one of you our colleagues.
Sincerely,
Bob Jones
Executive Vice President and Provost
Tony Wagner
Executive Vice President for Finance and Operations
