Kent State overspent its budget by $18.6 million for fiscal year 2024.

President Todd Diacon said in a letter to faculty and staff that unexpected revenue padded the overspending, resulting in a $9.9 million deficit.

Diacon also announced an immediate reduction in spending, a delay in large projects and a hiring and travel freeze for faculty and staff.

“Failure to deliver balanced budgets endangers our ability to deliver a soft landing,” Diacon said in the letter.

Financial challenges

The announcement follows a series of warnings from the president over declining state funding and enrollment. But given results from just 60 days into fiscal year 2025, Diacon predicted a dire situation for the university unless action was taken.

Diacon described the deficit as the university’s first in 20 years. However, the university would have ended fiscal year 2020 with an $8.1 million deficit until it received a last-minute lifeline in the form of $9.6 million from the CARES Act.

To avoid another deficit, the university must reduce annual expenditures by $10 million — $12 million each year through 2028, Diacon said in the letter.

It is not clear how specific reductions will impact the student experience. 

In a statement, the university referred back to a quote from Diacon’s letter: “Our commitment to access and student success continues. The Flashes Go Further Scholarship Program continues to provide full tuition coverage for our highest-need students, with 28% of incoming freshmen qualifying. Additionally, 36% of Kent Campus students graduate with zero debt.”

In a September interview with The Kent Stater editorial board, Diacon said the impact on students should be minimal if managed correctly. He added the university would need to maintain facilities on campus and the highest in-demand majors.

“So if we do it right, we’ll live up to our students-first core value,” Diacon said in the interview.

Hiring freeze

The hiring freeze is effective Oct. 16, 2024, and will remain in effect until further notice, according to a document provided by the university outlining the plan.

The freeze applies to all full-time and part-time faculty and staff including:

• New positions
• Vacant positions
• Reappointments
• Positions that become vacant while the freeze is in effect

Promotions, reclassifications and exemptions will be addressed on a case-by-case basis.

“Over the next 36 months, we will see a reduction in the number of employees at Kent State,” Diacon said in the letter.

Travel freeze

The travel freeze is effective Oct. 16, 2024 and will remain in effect until further notice. The freeze suspends university travel for all non-essential business.

Faculty and staff may request an exemption from the vice presidents for their divisions for the following types of business:

• State-mandated meetings in which no virtual attendance is provided
• Presenting at an approved conference required for accreditation, certification and/or job performance in which no virtual attendance is provided
• Contractually obligated travel in which no virtual attendance is allowed

Diacon will address the university’s finances further at 2:30 p.m. on Oct. 24, as part of a “Talking with Todd” session.

Alton Northup is news director. Contact him at [email protected].