National Institute on Aging

Morehouse College Deals With Budgetary Issues Brought About by the Pandemic

Morehouse College, the historically Black educational institution in Atlanta, announced that it will implement a reduction in force, furloughs, and pay cuts as part of a cost-reduction plan to offset an anticipated fiscal year 2020-2021 budget deficit due to the COVID-19  the pandemic. The College has estimated a potential 25 percent decline in enrollment as a result of the pandemic.

In the first phase of the reduction, 54 part-time and full-time employees will be furloughed for two months and 13 full-time employees will be terminated effective June 1.  One hundred-ninety-four exempt full-time employees will face pay cuts effective June 1, which will extend to at least December 31, 2021. Faculty and staff members who earn more than $55,000 annually will receive a pay reduction of 10 to 15 percent, depending on their income levels. Morehouse President David A. Thomas will take a 25 percent pay cut.

In addition, merit increases, hiring, and non-essential purchasing, and travel will be suspended. The college will also significantly curtail the hiring of temporary and contract employees. Academic programs will be evaluated for consolidation by a faculty-led team.

Morehouse estimates that the college will save $3.4 million as a result of these measures.

“This is a pivotal moment for all of higher education,” President Thomas said. “Those who can adapt to this new normal will thrive, while those who continue to look backwards will struggle to survive.”


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