Harrisburg University of Science and Technology recently eliminated three faculty positions and is making other changes to its teaching staff as it seeks to bolster its finances after missing a May installment payment on its bond debt.
The changes follow a report this month by consulting firm rpk Group advising Harrisburg U to reduce spending on instructional personnel, attract more donations and look for additional opportunities to boost efficiency.
The staff changes include shifting the school’s so-called corporate faculty members to part-time, adjunct status, according to Harrisburg U spokesperson Jessica Warren.
“Over the past year, we have continuously reviewed university operations to better align our resources with our mission of providing affordable education,” Warren said, noting that the school has not raised undergraduate tuition in 11 years.
The university has not cut any academic programs and even added 11 faculty members over the last fiscal year to support new programs, such as a planned doctoral program in physical therapy, she said.
“The reduction in instructional costs doesn’t directly mean significant eliminations — the university optimized teaching load which allowed us to utilize our full-time faculty and corporate faculty in a more efficient manner,” she said.
The bonds: To address the missed installment payment in May, Harrisburg U reached a forbearance agreement this month with its bondholders.
Under the agreement, which expires July 31, the school does not have to make monthly installment payments unless it has excess cash to do so.
Among additional provisions, the agreement calls on the school to retain a consultant to examine its finances and operations and “assist with a turnaround plan and financial projections.”
Harrisburg U lost $8.6 million in the fiscal year ending June 30, 2023, but is projecting a narrower loss of $814,393 for the current fiscal year, according to rpk’s report.
The college is projecting an operating gain for the upcoming fiscal year of $6.7 million, according to the report.
