The College of DuPage is dipping into their reserve funds to alleviate their deficit.
The college’s $174.8 million in expenses exceeds its $172.3 million in revenue.
One big reason for the $ 2.5 million shortfall is the state’s own financial troubles.
COD Treasurer Tom Glaser says the state should be funding about a third of the cost for educating students, or about $57 million but are contributing not even $13 million.
“Trying to determine the amount and timing of payment from the state has been a real challenge. The 2014 budget actually assumes that we’re only going to receive 4 payments from the state instead of12 for the next year,” said Tom Glaser, COD’s Treasurer.
Meanwhile salaries increased more than 3.5% while the cost of employee benefits also rose 14%.
The financial hardship may continue, as state legislatures consider shifting the costs of teacher pensions to local school districts, which would mean an additional $22 million expense for the College of DuPage.
But Glaser says the institution has anticipated such and has enough to shoulder the burden, with more than $127 million in cash reserves.
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