DULUTH – The University of Minnesota Board of Regents on Friday unlocked $5 million in reserve funds to help offset expected budget impacts and costs from fighting the coronavirus.
University of Minnesota expects up to $50 million budget hit from coronavirus, taps $5 million in reserves for now
Responses to the virus and lost revenue from canceled events could cost between $20 and $50 million.
March 13, 2020 at 9:34PM
With event cancellations and the costs of responding to the virus rising, the university's budget could ultimately take a $20 million to $50 million hit, said Chief Financial Officer Brian Burnett.
"We're likely going to experience revenue losses and increased costs across the board," he said. "Any additional tool the board gives us in the short run would be helpful."
The university's current $4.2 billion budget projected about $55 million in central reserves by the end of June. That money is set aside to "insulate the university from potential major financial risks," the budget says.
Regent Ken Powell said the first round of money is likely just the beginning and "gives us some flexibility now."
While the regents met on the Duluth campus Friday, Minnesota declared a peacetime state of emergency. As a result, U President Joan Gabel said she would be looking at an "escalation of our plans." Earlier this week the U moved all classes for all campuses online until at least April 1.
Gabel said that guidance on avoiding gatherings greater than 250 people could mean further event cancellations for those using university spaces.
"The main thing we need to really escalate is the recommendation for telework," she said in an interview. "We've been doing that quietly now on a case-by-case basis," but more employees will soon be expected to work off-campus.
Closing campuses completely — they will remain open while learning shifts online — remains on the table.
"We have plans for that; we have a whole policy for that; and we practice that," Gabel said. "We just hope we never have to use it."
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