Budget Cuts Follow Years of Enrollment Decline
The Catholic University of America (CUA) laid off 66 staff members this week to close a $30 million budget deficit. The university’s president, Peter Kilpatrick, stated the layoffs marked the final phase of a financial resiliency plan. The move represents 7% of CUA’s workforce and follows several years of budget shortfalls due to declining enrollment and rising operational costs.
Administrators Defend Strategy, Critics Express Concern
CUA leadership described the cuts as difficult but necessary. Kilpatrick emphasized that the changes place the university “on solid financial ground for the first time in years.” The restructuring includes reduced retirement contributions, suspended raises, new academic programs, and faculty buyouts. Still, observers question whether the financial stability will last, especially if enrollment growth stalls.
Enrollment Crisis Hits Catholic and National Institutions
CUA’s financial woes mirror a national trend. A 24% decline in tuition revenue since 2018 has contributed to multiple deficit years. The university blames low enrollment, growing tuition sensitivity, and escalating costs. Nationally, colleges are grappling with a demographic cliff caused by declining birth rates since 2007. High school graduates will decrease by 13% by 2041, intensifying university competition.
Catholic Identity: Asset or Liability?
CUA is doubling down on its Catholic identity while expanding programs in business and data science. The university reports enrollment gains in schools with strong religious branding. Yet, past concerns suggested its devout Catholic culture may deter some prospective students. Enrollment dropped by over 800 students from 2016 to 2022, though numbers have slightly recovered.
Future Hinges on Innovation and Mission Alignment
University leaders say future stability will depend on innovative programs, online degrees, and articulating the value of Catholic education. Kilpatrick calls for rethinking the traditional business model across Catholic higher education. Supporters see promise in the university’s direction, but skeptics warn that long-term financial health depends on reversing national enrollment trends.
Source:
Catholic University layoffs aim to stabilize budget ahead of ‘demographic cliff’
Image: Wikimedia Commons
About Post Author
