Coronavirus News: Rutgers University announces tuition freeze, cost cutting measures

Friday, April 24, 2020
NEW BRUNSWICK, New Jersey (WABC) -- Rutgers University President Robert Barchi announced Friday a tuition freeze and cost-cutting measures the help the university address COVID-19 related fiscal challenges.

Barchi informed the Rutgers community that he, as well as senior leaders, will take a 5-10% reduction in salary, as well as utilize reserve funds, and freeze all new major construction projects.
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"Leadership starts at the top," he said. "I will immediately reduce my salary by 10%. The chancellors and executive vice presidents, as well as the athletic director and head coaches for football and men's and women's' basketball, will also take a 10% reduction in salary over the next four months. The roughly 100 senior administrators who comprise the university's administrative council will similarly take a 5% pay cut over the same period."

He also called for a budget for the coming fiscal year with no increase in tuition and fees.

The changes announced follow other steps the university has already taken, including a university-wide hiring freeze, a ban on non-negotiated and out-of-cycle pay increases, and a ban on all discretionary travel and other expenses.

"Rutgers will weather this storm, but our university--and indeed all of higher education--confronts perhaps the greatest academic and operational challenge in its history," Barchi said.



The university president estimates a $200 million loss in the current quarter (April 1 through June 30) and expects more significant losses in the next fiscal year.

"Rutgers has a 250-year legacy of resilience," Barchi said. "I have no doubt that Rutgers will evolve as an even stronger institution, but we face difficult immediate challenges and uncertain long-term issues that will require shared commitment, vision, and sacrifice."

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