Northwest Missouri State University said according to a review the school has realized an estimated $66.5 million in cost containment and efficiencies in recent months.
According to a news release, Northwest compiled the report this spring, through the guidance of University President Dr. John Jasinski and Nola Bond, Northwest’s vice president of strategy and operations, by gathering documentation and input from all areas of the University.
The total represents cumulative savings documented by Northwest between 2012 and 2016. The University took similar actions between 2009 and 2012, but the recent review does not quantify those measures.
“One of Northwest’s core competencies is being resourceful,” Jasinski said. “We have been resourceful for 112 years and will continue to do so. We are stewards of taxpayer money and focus on quality, access and affordability. This study reinforces the Bearcat culture and climate as we carry out our traits and competencies.”
According to the review, Northwest realized about $18.3 million, the largest portion of savings, by replacing University spending on academic, program and facility needs with grants and other funds.
Northwest also reports it generated more than $11.2 million in funding by offering additional products and services, and it saved more than $9.7 million by refinancing debt. The University review references its internationally benchmarked student employment program, which offers some 1,200 profession-based roles to students as a vehicle to earn valuable professional experience, while being resourceful and reducing or avoiding costs through repurposing or restructuring its workforce, saving an additional $7.1 million in labor costs.
Additional efficiencies were captured by managing contracts to optimize services ($5.8 million) and optimizing processes ($4.9 million). Northwest saved about $2.5 million by using technology to reduce labor costs, and it tracked nearly $2.4 million through employee wellness programs that yielded employee benefit savings.
The school estimates it saved more than $2.6 million in energy costs during the last four years.
Northwest reports it realized additional savings through outsourcing ($827,500), refining academic programs ($481,500) and targeting capital funding ($441,500).
The University said it’s making plans to log additional savings in coming years. Earlier this spring, it announced the closure of its Missouri Academy of Science, Mathematics and Computing – which is project to save the University about $468,000 in FY18 – and Northwest-St. Joseph to save between $450,000 and $500,000 annually in coming years, and it will end its English as a Second Language program. The University also offered a voluntary retirement incentive to retirement-eligible faculty and staff while choosing not to fill open positions to realize additional budget savings.