SMU plans layoffs, other changes to cut $35 million

[TexasTowelie]

Southern Methodist University is expected to cut up to $35 million in annual operating expenses through layoffs and administrative changes in an effort to curb rising costs, even as the school continues its billion-dollar capital campaign.

The surprise decision to rein in finances follows a series of high-dollar expenditures in fiscal 2013 that included the opening of the George W. Bush Presidential Library, a change in the school’s athletic conference, consulting fees for a branding study to boost the school’s national reputation and 3 percent salary increases, according to a recent ratings update from Moody’s Investors Service.

Moody’s notes that the university has reached its debt capacity under its current rating and has “very thin liquidity” compared with similar universities, but it gives it a stable outlook. SMU has an Aa3 rating from Moody’s, the fourth-highest credit rating, and lags behind similar universities such as Vanderbilt, Emory and Notre Dame.

Staff affected by the layoffs are expected to be notified early next year, Chris Regis, SMU’s chief business and financial officer, said Thursday in an email.

Read more: http://www.dallasnews.com/news/community-news/park-cities/headlines/20141204-smu-plans-layoffs-other-changes-to-cut-35-million.ece

[font color=green]Unfortunate news for the #2 Methodist affiliated university in Texas (with #1 being my alma mater, of course).[/font]

[DuckBurp]

1. #2 Methodist affiliated university in Texas?

You're funny.

[TexasTowelie]

2. Yes, they are #2.

There is a relatively unknown rivalry between Southwestern University and SMU. The Methodists in Dallas wanted their own university and thought Georgetown was too far away so in their bitterness they started SMU. FWIW, Southwestern is more liberal than SMU even though it is the smaller school in a smaller city.

[DuckBurp]

3. Oh, I thought you meant Texas Wesleyan University

SMU may have a reputation as being politically conservative, but a significant number of students, faculty, and alumni, as well as members of the United Methodist Church, opposed the Bush Library being located there.

What bothers me about SMU's financial situation is that it was brought about by such things as expenditures to open the Bush Library and salary increases. Why was it SMU's responsibility to pay for opening that abomination? You can bet the cuts will affect those on the staff who can afford it the least. As I recall, University President Turner is one of the highest paid university presidents in the country. Was it Kentucky State University where the president took a pay cut in order to provide increases to the lower paid staff employees? Don't look for Turner to make that type of generous offer.