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Seton Hall University

Seton Hall Announces Academic Year 2021 Budget  

Side view of President's Hall and the Chapel with sun shining through trees. In preparing for the return of students and the start of the fall semester, Seton Hall University has approved a $305.1 million operating budget and set tuition, room and board rates for the 2020-21 academic year (AY21).

The AY21 budget reflects an anticipated revenue decrease of 10 percent, or $33.2 million, primarily due to the effects of COVID-19. In light of this projected decline, the spending plan calls for expense reductions while maintaining and increasing investment in mid- and longer-term priorities. Principles that guided the budgeting process include:

  • promoting the health and well-being of the University community;
  • being sensitive to University affordability, especially for our students with limited means, through enhanced student grants and scholarships;
  • investing in academic quality;
  • rebalancing instructional and non-instructional expense ratios by reducing non-instructional expenses and continuing our investments in faculty positions;
  • enhancing the student living and learning experience;
  • investing to ensure a successful return to campus; and
  • engaging in transparent communication of carefully considered financial decisions.

The principles listed above, coupled with an emphasis on shared sacrifice for the good of the University, resulted in multiple cost-saving measures, such as:

  • an extension of Seton Hall’s ongoing non-essential travel freeze through AY21;
  • an across-the-board reduction in operating expenses for each division;
  • an extension of the current hiring freeze through AY21;
  • continuing the University’s freeze on salary increases through AY21; and
  • an extension of the ongoing employee furlough program through July 31, 2020.

In addition, Seton Hall has enacted three further measures. The first is a 10 percent reduction in the workforce of administrators and staff members throughout the University, effective June 30, 2020.

"I sincerely wish we did not have to take this action, and understand it causes great disruption for our colleagues and their families," said President Joseph E. Nyre, Ph.D. "Unfortunately, in this extraordinary time, when the growing financial stress on universities has been exacerbated by COVID-19, we have been forced to make this difficult choice. It was made out of absolute necessity as a response to unavoidable external circumstances."

The second measure is a tiered salary reduction of 3 or 5 percent for most faculty members and employees. This reduction will begin on July 1 and end on June 30, 2021. The third is a temporary reduction of 403b employer contributions and a concordant reduction of employee mandatory contributions through the end of AY21, for non-union employees.

In addition to the measures to reduce expenses, the budget includes a tuition increase of 3.5 percent and 3 percent for room and board. This change is in line with a recently conducted tuition study, which shows that Seton Hall remains priced below many peer institutions. At the same time, recognizing that many families are struggling with the fiscal impact of the pandemic, the University governing Board of Regents has authorized additional one-time financial aid grant opportunities. The Office of Financial Aid will administer these awards to the neediest students based on requests for special scholarship consideration.

These actions represent thoughtful planning by committees composed of University-wide representation. And yet, they will not fully balance the AY21 budget. After taking the steps noted above, the University expects to sustain $8-12 million in losses for the year.

"In approving the budget, our Regents understood that reducing spending by another $8-12 million in a single year would significantly and adversely affect Seton Hall's educational and research missions," said Stephen A. Graham, the University's chief financial officer. "Though we will operate at a loss in 2020-21, this budget represents the best approach to preserving the excellence of a Seton Hall education while positioning the University for continued success this year and in the years to come."

The temporary fiscal actions detailed above will be reevaluated for elimination, extension or increase once a full net tuition and fee revenue forecast for AY21 is developed this fall.

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