The University of St. Thomas has informed employees it will lay off 26 staff members and keep 30 open positions unfilled, among more cost-cutting decisions to come, as it seeks to narrow a $10.5 million budget gap for the fiscal year beginning on July 1.

Rob Vischer, University of St. Thomas President, welcomes Lee and Penny Anderson to the podium as they announce the couple’s $75 million gift to the St. Paul school during a news conference in the Anderson Student Center on Tuesday, Jan. 17, 2022. The largest-ever donation to any university in Minnesota will go toward design and construction of a shared Division I hockey and basketball facility. (John Autey / Pioneer Press)

No academic programs or faculty positions were among the announced cuts.

University President Rob Vischer informed faculty and staff of the budget challenges in a letter this week and held a “budget town hall” on Friday at the O’Shaughnessy Education Center Auditorium in St. Paul. St. Thomas is Minnesota’s largest private university and one of the largest Catholic universities in the nation.

A spokesman for St. Thomas released a written statement Friday noting that while overall student enrollment has remained strong, St. Thomas was not immune to the “headwinds affecting all of higher education.” The eliminated staff positions represent less than 2% of the university’s roughly 1,500 employees, according to the statement, and an emphasis on small class sizes would be preserved.

Officials said across the industry, fewer students are enrolling in summer or “J-term” classes, more students are graduating early and the graduate school market has slowed. As more students enroll with increased financial need, some schools are competing by aggressively discounting tuition. Overall, tuition revenue at St. Thomas has declined over the past three years at a time of rising labor and utility costs, according to Vischer’s communication to faculty and staff.

The university has taken several steps to mitigate expenses, such as dipping into restricted funds and requesting an extra year of funding from a “quasi-endowment” fund to cover expenses related to its sports teams being recently elevated to NCAA Division I athletics. An employee benefits package will cut tuition remission for spouses to 50%, and pay raises in 2025 will arrive in lump-sum increases.

No academic programs are being eliminated, but Vischer’s letter indicated that St. Thomas would be “regularly reviewing our academic portfolio to determine if programs should be added or phased out.”

Related Articles

St. Thomas neighbors appeal site plan approved for new D1 hockey, basketball arena

Men’s basketball: St. Thomas defense comes through in victory over South Dakota

St. Thomas student hits $1M in sales with refurbished furniture company that emphasizes sustainability

University of St. Thomas unveils $110 million, four-level ‘STEAM’ building with Schoenecker Center

Men’s basketball: North Dakota pays back St. Thomas with win on Tommies’ home court