D.C.’s Georgetown University is facing a $50 million shortfall and will make belt-tightening moves, such as withholding merit raises and stopping contributions to employee retirement plans, as it responds to the financial impact of the coronavirus pandemic.
In a recent letter to the school community, Georgetown University President John J. DeGioia said a number of steps will be taken as to stem the financial toll of the coronavirus crisis.
DeGioia outlined moves that he wrote, “will strengthen our position to respond to the uncertainty of the coming year.”
- Reduction of spending on buildings and grounds, plus a “a high level of scrutiny for non-essential spending.”
- Withhold merit raises for all employees for the coming fiscal year.
- Continue with the freeze to hiring and salary increases, first announced on April 7.
- Suspend all Georgetown contributions to retirement plans for the coming fiscal year that begins next month.
- Voluntary salary reductions by 54 members of Georgetown’s administration for the coming fiscal year.
DeGioia’s May 12 letter stated the steps will offer “more than $100 million in cost savings that will enable us to address our current shortfall of $50 million and prepare for the uncertain financial picture for the Fall term.”
An outline of Georgetown’s plan for opening in the fall is expected “in the coming days,” DeGioia wrote.
The coronavirus pandemic has forced many schools, including Baltimore’s Johns Hopkins University, to make moves similar to Georgetown University’s actions.
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Georgetown previously announced it would honor its class of 2020 virtually, with online ceremonies planned for Saturday, May 16. The medical school will hold a separate online ceremony on Sunday, May 17.