Following a years-long COVID-19 pandemic and a bout of academic reorganization, Keene State eyes closing their long-standing budget deficit within the next few years.
The University System of New Hampshire (USNH) Board of Trustees approved Keene State’s fiscal year 2024 budget back in June. Fiscal years in higher education do not run concurrently with the federal government’s fiscal years, which lapse each year on Sept. 30, but instead run from July 1 each year to June 30, with the year representing when the budget lapses.
Vice President for Finance and Administration Nathalie Houder said in an interview that the most notable change to the budget was a $3.5 million dollar increase in funding from the state government allocated to the college. The funding comes from the state’s 2023-2024 annual budget which increased spending on the university system, specifically directing funding toward Keene State and Plymouth State University.
According to the text of HB2, one of two appropriation bills that made up the state budget, “here is hereby appropriated to university system of New Hampshire the sum of $3,000,000 in the fiscal year ending June 30, 2023. Said appropriation shall be matched with $3,000,000 from the university system, for a total of $6,000,000, and allocated to Keene state college and Plymouth state university.”
In a Feb.15, 2023, press release, KSC President Melinda Treadwell applauded the governor’s then-proposed budget, stating, “We are thrilled to receive the Governor’s commitment to increase support for public higher education.”
Houder also noted increases in grant funds for the Behavioral Health Improvement Institute (BHII) at KSC.
Houder explained that with budgets, savings are often offset by other factors. “We’ve seen some savings on adjuncts, but it’s been offset by contractual raises,” she said. “There are a lot of ins and outs on where we see increases and offsetting decreases.”
“I know with facilities, we’ve cut back on some things in facilities that are not critical to the mission and critical to operating the campus, but we’ve had to make some decisions for savings as well,” she said.
When it comes to the budget deficit, Houder explained that while Keene State is still currently in a deficit, significant progress has been made to reach a “breakeven point.”
“Mainly supported by our strategic planning efforts for revenue enhancements, we have external parties leasing space on campus… we’re looking at revamping summer, we’re looking at holding enrollment steady and increasing our retention efforts… those are all coming to fruition,” Houder said, referring to deficit reduction.
“I do expect us to, with successful execution of those initiatives, break even over the next five years, and hopefully sooner obviously,” she explained. Houder noted that in fiscal year 2023, the college’s budget deficit was $5.4 million, but in fiscal year 2024, the deficit stands at $2.7 million, which she said illustrated the college’s ability to tackle the issue. “Our goal is within the next few years that we would see a breakeven, and hopefully a 1 percent margin.”
Houder said that she wants the budget process to be transparent and is willing to have discussions with campus community members to gain input in the process. “We work across the campus and we’re just getting into, now, budget planning for next year so the timing is good… I’d be happy to get engaged and speak to the right people that represent our students,” she said. “Everybody can contribute and does [contribute].”
Nathan Hope can be contacted at
nhope@kscequinox.com
