Paul L. Caron
Dean




Tuesday, April 14, 2020

University Of Wisconsin Faces $100 Million Loss Due To COVID-19 Pandemic

Wisconsin State Journal, UW-Madison Braces For Estimated $100 Million Loss Because of COVID-19 Pandemic:

WisconsinUW-Madison anticipates a $100 million loss because of the COVID-19 pandemic that has thrown its campus into chaos as dorms are emptied, classes moved online and students told to stay away.

Chancellor Rebecca Blank said the $100 million estimate represents how much the university would lose if life largely returns to normal by June, a timeline that is up in the air as scientific models continue to shift depending on the public’s compliance with social distancing.

The figure represents about 3.2% of UW-Madison’s $3.1 billion budget. It’s the equivalent of a 22% cut in state money for a single year.

The $100 million estimate does not include reimbursement of tuition and fees — something Blank said Monday that the university will not offer despite some students calling on UW-Madison to do so.

The financial loss includes reimbursing the majority of students living in residence halls for the time in which they could not live in the dorms or eat in dining halls. The university will also reimburse employees’ parking permits on a prorated basis.

For complete TaxProf Blog coverage of the coronavirus, see here.

https://taxprof.typepad.com/taxprof_blog/2020/04/university-of-wisconsin-faces-100-million-loss-due-to-covid-19-pandemic.html

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Comments

Based on US Dept. of Ed. info reported on TaxProfBlog earlier this week, UW-Madison will receive just under $20 million in federal funds, of which half must be spent on "emergency student aid," based on the university's definition of the term.

Posted by: Michael L. Wyland | Apr 15, 2020 7:36:13 AM

Cry me a river! Do you know how to get that revenue back? Simple. Be an independent thinker with GUMPTION and reopen your campus. Enforce common sense personal protection!

Posted by: SueR | Apr 14, 2020 4:58:58 PM

Hmm, maybe this is a job for ... oh, I dunno ... their endowment? A quick search shows it is $3.1e9, so this shortfall is chump change.

Posted by: Tom Haas | Apr 14, 2020 7:44:37 AM

This is what the $3 billion endowment is for. The state's taxpayer's clearly can't afford to make this up at this time.

Posted by: doc | Apr 14, 2020 5:52:25 AM

couldn't happen to a nicer group of folks

Posted by: charles werner | Apr 14, 2020 5:50:07 AM