1. The KillerFrogs

TCU 360: TCU expects $90 million shortfall to budget

Discussion in 'Scott & Wes Frog Fan Forum' started by TopFrog, Aug 14, 2020.

  1. TCU expects $90 million shortfall to budget

    By Renee Umsted

    The fallout from COVID-19 is causing a $90 million shortfall in TCU’s operating budget.

    Chancellor Victor Boschini outlined the university’s position Wednesday in an email to faculty and staff.

    The shortfall, about 16% of the university’s $558 million budget, results from a “slight decrease” in enrollment, increases in financial aid for online classes and need-based aid, and changes to athletic programs with lower anticipated revenues, Boschini wrote.

    Read more at https://www.tcu360.com/2020/08/tcu-expects-90-million-shortfall-to-budget/
     
  2. I'm ignorant to how finances work, however isn't this where are $1.71 Billion endowment steps in to fill in some of the gaps?
     
    Putt4Purple and Bob Sugar like this.
  3. I'm sure they'll start a new fundraising campaign first.
     
    Showtime Joe 2.0 likes this.
  4. The endowment is invested and the school uses the funds along with tuition and other income to pay the bills. Revenue is going to be $90 million less this year, so the budget will have to be cut. When you start taking additional money out of your endowment, you decrease the amount to invest and decrease the amount you can make off the endowment for next year.
     
    Sweat Equity likes this.
  5. No, the endowment funds are specifically designated funds for scholarships, faculty positions, etc. and are not unrestricted funds for operations.

    However TCU has about a $1.8 billion unrestricted fund balance that does not include the endowed funds so they are good for now.
     
    BABYFACE and Froginbedford like this.
  6. I’d be willing to bet we have our share of bloat that could be trimmed
     
    6Frog6, Klaw, BrewingFrog and 2 others like this.
  7. Just ask the Texas legislature for more mon....oh...wait...that's TU, not TCU

    As you were.
     
    HG73 and Putt4Purple like this.
  8. In 2019, TCU's endowment was listed at $1.71 billion. In the latter part of that year, TCU announced

    their intention to open the 'Lead On Campaign' designed to raise an additional $1 billion dollars to

    be added to the 2019 endowment. On October 24, 2019, 'TCU 360' reported that the 'Lead On Campaign'

    had already raised $600 million of its $1 billion dollar goal. So, does anyone have the slightest clue as

    to the current amount of the university's endowment?
     
  9. So my simple finance mind tells me that budget is the amount you have to spend.This comes from revenue from which the University determines it's spending ability.

    Wouldn't it be correct to say that if you have less revenue you must cut cost, and wouldn't those cost include the already reductions to 401K matches and wage freeze already implemented. In addition, if no one (or less) is on campus, wouldn't you have lower utilities, less trash, less over all maintenance of the facilities?

    I don't know seems like a half story to me....
     
  10. You don't want to do that.
     
    Sweat Equity likes this.
  11. I didn’t want to dip into my savings to pay my mortgage, but 5 months and film production still isn’t back so that’s what I’m doing.
     
    mcdaddy likes this.
  12. Not necessarily. Most endowments are "permanently restricted" by the donors, meaning the corpus can't be touched. Generally the earnings are available to be used, but there may also be restrictions on how the earnings are used. I'm not knowledgeable about TCU's specifics. Maybe others that post are.
     
  13. No need to worry, a Hollywood accounting firm is on their way to sort it out.
     
    YA and Sweat Equity like this.
  14. An endowment is not a savings account.
     
    TopFrog, TCUdirtbag and Sweat Equity like this.
  15. Truth be told, TCU has been averaging close to this amount in net income every year for the past 5+, so they will be just fine I think at the end of the day.
     
    TCUdirtbag likes this.
  16. I realize his. Some of my friends have had to break into their annuity accounts as well. The point is hard times mean you have to make exceptions.
     
  17. I've always understood that to "raise"it doesn't mean you've got in in the bank. I bet that $600 million "raised" includes a lot of pledged money.
     
    Sweat Equity likes this.
  18. Quick glance on the 990s available:

    5-31-2018 $145,038,230
    5-31-2017 $124,068,447
    5-31-2016 $67,178,264
    5-31-2015 $151,887,966
    5-31-2014 $154,497,432
    5-31-2013 $96,841,133

    Fund balance (not endowment related) has grown from $1,642,967,777 to $2,377,737,294 over that period.
     
    SuperBarrFrog likes this.
  19. Interesting times. Hard to raise tuition rates today, but I bet we give it a go.
     
    tcuball3 likes this.
  20. I know all about endowment. The five sizes of endowment are: small, medium, large, extra large, and just right.
     
    BrewingFrog likes this.

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