The University of Toledo Board of Trustees adopted an operating budget for fiscal year 2025 that is now more than $1 billion.
The budget includes a 3 percent increase in undergraduate tuition for the incoming cohort of the Tuition Guarantee, aligned with what is allowed in the state budget.
The $1.03 billion budget includes the academic, auxiliary, and clinical operations of the institution, including the physician group.
Also included is a more than $70 million projected revenue growth in hospital patient services from the previous year. It projects a $5.5 million decline in revenue from student tuition and fees.
Operating expenses were reduced by eliminating most vacant positions and travel funding.
Matt Schroeder, interim president, announced that a surplus of $24.4 million in operating revenue from the fiscal year 2024 budget was because of higher than anticipated revenues at the hospital as well as operating expense reductions.
The $21.4 million in capital projects, include the demolition of Academic House, International House, and Sullivan Hall aligned with the Multiple-Campus Master Plan. A fourth cardiac catheterization lab was added to the list of projects for $4 million.
New technology will be purchased to support procedures in areas including orthopedics, cardiology, anesthesia, and oncology. Renovations are planned for patient rooms, including new beds, and the transplant program.
“This university very wisely decided to reinvest the surplus back into the institution,” Mr. Schroeder said. “Our overall financial performance has allowed us to do that.”
Will Lucas, president of the board of trustees, said he knew the budget would be large.
“I knew it was big,” Mr. Lucas said. “If it is not the biggest budget UT has had it is very close. This university is large, and it is complex. It was a big decision, believe me.”
In addition to the 3 percent undergraduate tuition increase, graduate tuition rates will rise 2 percent, with differential tuition increases in select graduate and professional programs.
Room-and-board rates were approved at the board’s December meeting. Housing rates will increase an average of 3 percent, depending on the student’s choice of residence hall. Meal plans will increase 4 percent. Under the new rates, a standard double room will increase $140 per semester and the unlimited Gold 7 All Access meal plan will be $95 more per semester.
Mr. Schroeder said the increase is for new students starting at UT this fall.
“This is an attempt to keep pace with inflation,” Mr. Schroeder said. “With the Tuition Guarantee, students and their families can plan on the costs of college. In the end, we are still one of the most affordable universities in the state.”
The budget includes a 2 percent wage increase for eligible professional staff and faculty who are not part of a bargaining unit. Compensation for UT employees who are union members is determined by their collective bargaining agreements.
Trustees also approved a new contract with Communication Workers of America Local 4319, which represents approximately 330 employees who provide clerical, maintenance, and custodial services, primarily on UT’s main campus.
The agreement, which is retroactive to Jan. 1 and goes through Dec. 31, 2025, was approved by union membership April 25. Employees will receive a 2 percent wage increase and $100 lump sum payment each year, and contract language was updated in areas of evaluation timelines, probationary periods, and parking rates.
“This budget invests in our students and staff and is a great thing for this university,” Mr. Schroeder said. “We were able to get a fair agreement with CWA as well. The fiscal 2025 budget overall is well balanced this year.”
The board also approved the expenditure of $3.4 million for a pedestrian bridge. On Dec. 6, the board approved the construction of a pedestrian bridge over Douglas Road near the east side of Savage Arena.
The pedestrian bridge will provide a safe pathway for students, faculty, staff, and visitors between the main and engineering campuses. Funding for the bridge is from both the state biennial capital budget and local capital.
Mr. Schroeder said the bridge is a much-needed project for the safety of students and those attending basketball games at Savage Arena.
“There have been a number of close calls between students and the traffic on Douglas,” he said. “The bridge is in the best interests of students and pedestrians and will provide a safe pathway between the two campuses and the arena.”
Bids were received for the bridge project, with the lowest bid of $2,552,800 from A.A. Boos & Sons for construction.
The total project cost, including design fees, permitting, inspections, a construction contingency, and the bridge structure prepurchase is $3,413,007. Construction for the bridge is expected to begin in late July and should be completed by spring.
In other business, trustees also approved an updated University Completion Plan to be sent to the Ohio Department of Higher Education and revised academic department names. The previous Department of Communication will change to the Department of Communication and Media in the College of Arts and Letters, and the Department of Neurosciences and Department of Psychiatry will merge into one Department of Neurosciences and Psychiatry in the College of Medicine and Life Sciences.
The board selected officers for next year, with Patrick Kenney to serve as chairman for 2024-25 and Eleanore Awadalla as vice chairman. UT Chief of Staff Katie DeBenedictis will continue in her role as secretary to the board.
The June meeting completed the term of Mr. Lucas, who was appointed to the board on Feb. 24, 2016, and served as chairman during the past year, and student trustee Madeline Vining.
Mr. Lucas, founder and chief executive officer at aWLCo, a family of companies operating in the media, technology, real estate, and hospitality industries including Creadio and TolHouse, received the title of emeritus trustee.
During the meeting, he also was recognized as an honorary member of Blue Key National Honorary Society.
Mr. Kenney thanked the trustees for their vote and then relayed a personal memory he has with Mr. Lucas.
“When we met, he was wearing a tie with the UT emblem on it,” Mr. Kenney explained. “I told him I liked his tie, and he thanked me and left. The next day there was a box at my office from Mr. Lucas. It had the same tie in it for me. I still wear it. It tells you what a caring man he is.”
Mr. Kenney then presented Mr. Lucas with a bottle of Barolo wine, from his own collection.
“This wine is classy, refined and has a long finish,” he said. “It reminds me of you.”
“I want to thank you for nine years of dedicated service,” trustee Alfred Baker said. “You are a friend and a mentee of mine.”
Mr. Lucas said he tried to live up to the work of other chairmen before him.
“It was not easy stuff but I leave here with gratitude,” he said. “I always aim to be historically correct. Even though some decisions have been hard. It is not easy making an unpopular decision, but I hope that 10, 20 years down the line people will see that we made the right decisions.
Mr. Lucas said he is looking forward to some time away from the board.
“I care a lot about this institution,” he said. “Being on the board is a very busy time, and with my businesses I need a break. I know the board is in great hands and I look forward to still being involved in the future.”
Public members of the UT health board were also approved. The five new board members are Neema Bell, a retired partner from Shumaker, Loop & Kendrick and graduate of the UT college of law; Cleves Delp, a financial services industry leader and philanthropist; Jeannie Hylant, executive vice president and leader of the hospitality and franchise practice at Hylant; Jodi Miehls, president and chief operating officer of Block Communications; and Dr. Gerald Zelenock, a surgeon who led the UT department of surgery as professor and chairman from 2006 to 2015 and also held leadership roles at the University of Michigan and Beaumont Hospital.
Trustees Dr. Awadalla, Stephen Ciucci, and Zac Isaac were appointed to the UT health board. Mr. Ciucci will serve as chairman.
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