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Home Banking & Finance

CSCU, citing budget crisis, seeking $69 million bailout from state

Kevin Zimmerman by Kevin Zimmerman
October 11, 2020
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Citing a “budget crisis,” the president of the Connecticut State College and University (CSCU) system is asking for a $69 million bailout from the state.

CSCU bailout“Our budgets are strained to dangerous levels, putting the financial health of CSCU in critical condition,” President Mark Ojakian wrote yesterday to Gov. Ned Lamont. “The community colleges in particular are facing reserves near zero. I respectfully request that you support an appropriation in that amount to address our budget crisis.

“We desperately need help in building a bridge to take us beyond this troubled year,” Ojakian said. “Without additional state and federal funding, serious cuts threatening student-facing services and the long term viability of our institutions will have to be considered.” Furloughs are among the measures being contemplated.

Among the 17 schools belonging to CSCU are Western Connecticut State University in Danbury, Norwalk Community College, Housatonic Community College in Bridgeport and the online Charter Oak State College. The system is already in the midst of consolidating its schools into one central system in an effort Ojakian has said will save it some $23 million a year.

Unionized workers at CSCU received $20 million in raises this year under a 2017 agreement with the State Employees Bargaining Agent Coalition (SEBAC), Ojakian noted. Enrollment is also down this year, by about 5.5% at CSCU”™s four regional universities and by approximately 15% at its 12 community colleges.

Last week, the unaffiliated University of Connecticut asked the state for a $104.4 million bailout and said it would probably need even more if Covid-19 forces it to close again.

In an August interview with the Business Journal, Ojakian ”“ who is retiring at the end of the year ”“ said the cancellation of the fall semester could cost the system to run “over $100 million in deficit at least” in room and board refunds. CSCU issued about $25 million in such refunds for the spring 2020 semester.

Gov. Ned Lamont said he would look into the matter at a briefing yesterday, but did not commit any specific funds to CSCU.

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