By Stephen Neukam and Shaun Chornobroff
Rider is mulling the possibility of again extending administrative pay cuts that are in effect until the end of June, a move that has already saved the university nearly half of a million dollars, according to a top university official.
The cuts, which have been in effect since May, were extended in October after being set to expire that month.
The reductions have saved the university around $470,000, according to Associate Vice President for University Marketing and Communication Kristine Brown. These savings are a slice of the costs that the university has been attempting to recoup in the past year to compensate for steep revenue declines due to the pandemic.
Labor costs have been at the forefront of the school’s cost shaving — Rider has cut nearly $10 million in labor expenses in the last two years.
According to Brown, the university has not made a final decision about future administrative cuts. The current cutbacks are set to expire on June 30, the end of the fiscal year.
The pay cuts extended to President Gregory Dell’Omo and his cabinet members, as well as the deans of the university’s colleges.
The push to quell expenses comes as the university’s budget deficits mount. Over the last three years, Rider has run a cumulative deficit of $28.1 million. Revenues declined by $15.5 million between this year and last.
Caption: Rider has cut nearly $10 million in total labor costs within the last two years, a major slash in spending.