UToledo Adopts $1B Operating Budget, Capital Projects

UToledo Adopts $1B Operating Budget, Capital Projects

The University of Toledo has adopted an operating budget for fiscal year 2025 that is now more than $1 billion thanks to the growth of the clinical enterprise.

The UToledo Board of Trustees approved on June 26 the $1.03 billion budget that includes the academic, auxiliary and clinical operations of the institution, including the physician group. It includes more than $70 million projected revenue growth in hospital patient services from the previous year and 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.

The budget includes a 3% increase in undergraduate tuition for the incoming cohort of the Tuition Guarantee aligned with what is allowed in the state budget. Graduation tuition rates will increase 2% with differential tuition increases in selected graduate and professional programs.

Room and board rates were previously approved at the Board of Trustees' December meeting. Housing rates will increase an average of 3%, depending on the student's choice of residence hall, and meal plans will increase 4%. 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.

The budget also includes a 2% wage increase for eligible professional staff and faculty who are not part of a bargaining unit. Compensation for UToledo employees who are union members is determined by their collective bargaining agreements.

Trustees approved a new contract with Communication Workers of America (CWA) Local 4319, which represents approximately 330 employees who provide clerical, maintenance and custodial services primarily on UToledo's Main Campus.

The agreement, which is retroactive to Jan. 1, 2024, and goes through Dec. 31, 2025, was approved by union membership April 25. Employees will receive a 2% wage increase and $100 lump sum payment each year and contract language was updated in areas of evaluation timelines, probationary periods and parking rates.

A surplus in operating revenue from the FY24 budget due to higher than anticipated revenues at the hospital, strong investment returns and operating expense reductions across the institution is being reinvested in capital improvements. The $21.4 million in capital projects are focused on improving the student experience at the University and the patient experience at the University of Toledo Medical Center.

Capital improvements to the academic operations include the demolition of Academic House, International House and Sullivan Hall aligned with the Multiple-Campus Master Plan. Funding will also go to classroom and laboratory renovations and improvements to auxiliary facilities.

Investments in the clinical operations include $4 million to add a fourth cardiac catheterization lab to allow for additional cardiology procedures. New technology will be purchased to support procedures in areas including orthopaedics, cardiology, anesthesia and oncology. Renovations are planned for patient rooms, including new beds, and the transplant program.

In addition, Trustees approved the construction of a $3.4 million pedestrian bridge over Douglas Road near the east side of Savage Arena that will provide for safe travel for people to walk or bike across the four-lane road to travel between Main Campus and the engineering buildings. UToledo worked with the City of Toledo on the project plan. Construction is expected to begin this summer and be completed by next spring.

Trustees also approved for University leaders to move forward with plans to upgrade the digital assets in Savage Arena through a modified agreement with Learfield's Rocket Sports Properties, extend a partnership with BVK, a Milwaukee-based marketing firm that is working with UToledo on a rebranding project, and partner with WittKieffer to lead executive search.

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.

In other business, the UToledo Board of Trustees selected officers for next year with Patrick Kenney to serve as chair for 2024-25 and Eleanore Awadalla as vice chair. UToledo Chief of Staff Katie DeBenedictis will continue in her role as secretary to the Board.

Public members of the UToledo Health Board were also approved. The five new board members are: Neema Bell, a retired partner from Shumaker, Loop & Kendrick and graduate of the UToledo 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 UToledo Department of Surgery as professor and chair from 2006 to 2015 and also held leadership roles at the University of Michigan and Beaumont Hospital.

Trustees Awadalla, Stephen Ciucci and Zac Isaac were appointed to the UToledo Health Board. Ciucci will serve as chair.

The June meeting completed the term of trustee Will Lucas, who was appointed to the Board on Feb. 24, 2016, and served as chair during the past year, and student trustee Madeline Vining. 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. He also was recognized as an honorary member of Blue Key National Honorary Society.