Editor’s note: Another story about this subject will follow after an interview held with Susan Howarth on Thursday, Oct. 12.
WKU spent more than $11 million over the revenue it generated in 2022-23, records show.
The spending in excess of revenues amounted to 2.9% of WKU’s education and general budget of $383.4 million for the 2023 fiscal year, which ended on June 30, according to data supplied from WKU’s budget officials in response to a public records request from the Herald.
For the current 2023-24 fiscal year, there is a “total budget adjustment target” of $11.4 million, which is 2.9% of the $389.9 million fiscal year 2024 budget, according to the document produced in response to the Herald request.
“Final FY23 expenditures slightly exceeded revenues (2.9%); therefore, divisions are adjusting FY24 spending plans to grow reserves and ensure the university maintains the capacity to invest in initiatives that advance institutional strategic goals,” according to the document.
WKU President Timothy Caboni addressed the issue at a Staff Senate meeting Wednesday morning.
“There is no budget deficit at the institution,” Caboni told the Staff Senate. “There is no budget cut. Actually, this year, our revenue and our budget number is higher than last year’s.”
WKU’s expenditure budget for fiscal year 2023 was $383.4 million, according to the 2022-23 university budget, and was $7.8 million more than what was budgeted in 2021-22. According to the 2023-24 university budget, the current expenditure budget is $389.9 million, which is $6.5 million more than 2022-23.
Caboni said WKU does not have a budget issue, but a spending issue from last year. He did not specify which areas of the institution overspent their allotted budgets. The Herald plans to question which areas overspent at an interview with Susan Howarth, Executive Vice President for Strategy, Operations and Finance, on Thursday, Oct. 12.
“We spent a little bit more last year than we brought in. So we don’t have a budget issue. We had a spending issue last year, but this is what’s so important about this,” Caboni said. “So for the past six years, each year, as an institution, we have spent under our revenue. You know what that is? That’s good financial management.”
Caboni said the university’s ability to handle the overspending for 2022-23 is part of the “maturation as an organization and university.”
He said the plan to adjust for the 2.9% overspending from last year is to spend less of the actual revenue in the current year, which he stated has been done in years prior.
“Coming out of COVID, we knew there were going to be some expenditure pressures, so last year we spent … 2.9% over our overall budget,” Caboni said. “And so what I am asking people to do this year is what we have done our previous five years, which is spend 90% of actual revenue. That’s not a cut. That’s actually just managing our money well.”
Caboni explained that those with “budget authority” should be responsible for the spending they do, as well as be responsible for creating reserves in their areas. He stated he is excited the university is in a place where a “3% overspend” is just something it will manage, and that it can then “get back to good.”
“So, I don’t know what it felt like to all of you last year, but it didn’t feel to me like we were spending extravagantly, right? This year, it won’t feel to you like we’re spending in an austere mode,” Caboni said.
Editor-in-Chief Alexandria Anderson can be reached at [email protected].
