University to increase student tuition and faculty salaries

September 26, 2013

Over the next five years, the University’s Financial Plan intends to increase total University spending by $127,893,000. In order to cover these additional expenditures, the University expects greater growth in revenue, primarily by raising tuition.

As a whole, money raised through tuition will increase by 5 percent, prompting undergraduate student tuition to increase by 4.5 percent in 2014, 4 percent in 2015, and 3.5 percent each year after until 2017.

Despite bringing in over $1 billion in revenue in 2012 through tuition, gifts, grants, contracts, endowment income, and other resources, Georgetown closed the fiscal year of 2012 with a $15.7 million deficit. According to the University’s 2014-2017 Financial Plan, the deficit is expected to extend until the end of the 2015 fiscal year.

The University is expecting to see a fall in the operation deficit from a projected $19.4 million in fiscal year 2013 to $9 million in fiscal year 2014 and $2.6 million in fiscal year 2015.

The source of the total university’s deficit is predominantly the Medical Center, which, in 2012, closed the fiscal year with a deficit of $26.5 million. Meanwhile, the Law Center had a deficit of $38,000, University services had a deficit of $5.8 million, and the Main Campus brought in a surplus of $12.7 million.

Currently, the largest portion of the budget is dedicated to employee salaries and fringe benefits. Over the next five years, the amount of money set aside for salaries is planned to increase by 2.7 percent, while fringe benefits will increase by 5.3 percent. In order to accommodate this increase in salaries, the base salary increases for tenure line faculty at the Main Campus and certain members of the law center faculty will be delayed by 6 months, taking effect only on January 1, 2014.

When contacted on Wednesday evening, Stacy Kerr, assistant vice president for communications, could not immediately comment on possible increases in salaries for adjunct professors, who composed 48% of University faculty.

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