The $4.45 billion budget reflects sharp decline in revenues due to pandemic, despite restored state aid

The Rutgers University Board of Governors today adopted a revised $4.45 billion budget that adjusts for restored proposed cuts in state support, an unprecedented collapse of dining, housing and other revenues related to the COVID-19 crisis and cost increases related to the pandemic.

The amended budget for the fiscal year that began on July 1, 2020, includes $86.6 million in state revenues that restores a previously proposed cut in state operating aid to the university. Direct state operating aid totals $437 million, about 10 percent of Rutgers’ overall budget.

The adjusted budget assumes other cost savings, including a wage freeze and additional furloughs intended to preserve jobs for the university’s 23,600 employees, a continued prohibition on business travel, an ongoing suspension of new capital projects and a review of active projects, and a freeze on discretionary spending related to university operations.  

The budget reflects a shortfall of $97 million in revenues, including more than $43 million in reductions in health care clinical revenue due to a falloff in elective surgeries, procedures and other medical services; a significant reduction in tuition revenue; and reductions from student housing, dining and athletics.

“The pandemic has had a profound impact on finances at all colleges and universities, and Rutgers is no different,” said Michael Gower, chief financial officer for the university.  “We have made good progress in closing the gap while, at the same time, we froze tuition and reduced fees for most of the 70,000 students who study and learn at Rutgers.”

“Even with the restoration of $86.6 million in previously proposed cuts in state operating aid to the university, we are still in a fiscal emergency requiring extraordinary steps to fill the largest financial hole the university has ever experienced,” he added.

Adjusted Budget Summary

Major Revenue Reductions:

  • Auxiliary revenues (housing, dining and parking, for example): the revised budget includes a reduction of $73.5 million
  • Health care revenues: $43.4 million
  • Other sources of revenues (including gifts and investment income): $11.2 million

Significant Cost Increases:

  • Student financial aid
  • Student health services
  • Student mental health services
  • Technology needs for student in remote instruction environment
  • Technology and support for faculty to provide remote instruction
  • Supplies and materials for proper disinfecting of campus facilities and supplying appropriate personal protective equipment


Find more information about the revised fiscal year 2021 budget on the University Budget Office website.