USD will start fall semester early on Aug. 17, planning for $33 million financial loss, at minimum

Students living on campus will not be placed in triples or quads next year, USD will house some students in Pacific Ridge Apartments

Celina Tebor / Associate Editor / The USD Vista

The University of San Diego will begin its Fall 2020 semester earlier than usual, on Aug. 17, according to an email sent by USD President James T. Harris, III, D.Ed. to the campus community. This decision was made so that students can end the fall semester before Thanksgiving and before the beginning of flu season in San Diego.

USD has lost over $17 million due to the global pandemic, and will likely continue to lose at least twice as much next year. The University Senate meeting on May 7 heavily focused on the financial impacts the university has faced thus far and will continue to face this upcoming fiscal year (FY21), which begins on July 1.  

In comparison, the university lost about $10.5 million during the 2009-2010 financial crisis.

“It is our greatest financial challenge in over our 70-year history,” Harris said.

Harris said USD is essentially in a state of emergency, but the intent to return to campus for Fall 2020 remains.  

The university is projecting its FY21 finances off a base scenario of a 3% undergraduate enrollment decline and increased financial need for undergraduate students in Fall 2020. The projected enrollment decline alone would already cost USD $9 million. If the enrollment decline was more extreme, at 15%, the university would lose $27 million.

Another major financial impact USD is expecting for Fall 2020 is in regard to on-campus housing. In order to maintain social distancing, students living on campus next year will not be placed in triples or quads — only singles and doubles. USD will also house some students in the Pacific Ridge Apartments, across the street from campus.

Based on the 3% enrollment decline model, the reduction of density in residence halls will cost the university another $7 million.

In total, USD projects it will lose $33 million with a 3% enrollment decline next year.

The university has planned an approach to bridge the $33 million operating deficit, with most of the funds coming from deferring maintenance projects, discretionary spending, and salary increases, and reducing the 403b retirement plan for faculty, administrators, and staff. 

These projections are all based on the assumption that students will return to campus next year. If the entirety of Fall 2020 was remote, the financial impacts would be much more severe — at least $70 million, according to Harris.

Some senators cautioned the decision to return to campus in fall. Alejandro Meter, a senator and professor of Spanish at USD, was concerned with the dangers faculty and staff might face in returning to campus too early.

“In many ways, we are the front lines — the faculty,” Meter said. “The risk of contracting this very serious disease is pretty real. So I hope we continue to reassess throughout the summer and think this through a little bit more.”

Harris acknowledged Meter’s concerns, noting that the decision would be difficult to make.

“I think this is a watershed moment for us and for higher education,” Harris said.

Another senator, Can Bilsel, brought up concerns he had heard from faculty about the university’s continuation of construction projects despite anticipations of heavy financial losses. Bilsel is the program director of USD’s architecture program and a professor of architecture and art history. He read a note he had received from another faculty member at USD, who he did not name:

“For years, USD’s leadership has prioritized buildings over people,” the faculty member had written.

Harris explained why the university decided to go forward with some of its construction projects — saying that halting projects already underway, like Copley Library, would be  “foolish and costly.” In regards to Camino and Founders halls, USD has taken $56 million in bonds that could not be used for any purpose other than the reconstruction of those buildings.

Austin Choi-Fitzpatrick, senator and associate professor of political sociology at the Joan B. Kroc School of Peace Studies, asked about the availability of testing USD community members for COVID-19 on campus next year. 

Harris said county health officials have told USD they will have access to testing in the fall, and that the university’s top priority for August is testing for COVID-19.

“Ideally, I’d like to test every on-campus student,” Harris said. “At least.”

Ultimately, the USD president told the University Senate he was willing to take any and all blame for any poor decisions made by the university. 

‘“I take full responsibility for this,” Harris said. “If there’s any blame to be placed … you should blame it on me.”

He also explained that USD is in a far better position than most of its peers, and hopes it will come out stronger on the other side. USD’s goal remains to return to campus in the fall, and Harris’ email outlines the campus’ six-point plan to reopen the school.