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NEIU reports FY25 second-quarter budget surplus forecast; Pell 55 funds offset early scholarship spending
Summary
Administrators told the Finance committee that year-to-date FY25 results show favorable credit-hour trends and forecast a $965,000 surplus at year end, with Pell 55 funding reducing scholarship spending in the first six months; trustees were briefed on revenue variances, vacancy savings and a recent MAP shortfall addressed by the university.
Administrators presented Northeastern Illinois University’s FY25 second-quarter budget-to-actual report on Feb. 13, reporting stronger-than-expected spring credit hours, year-to-date revenue variances largely caused by timing of state reimbursements, and a preliminary forecast that projects a roughly $965,000 surplus by fiscal year end.
Benny Ortiz, presenting the report, highlighted a 1.9% increase in student credit hours for spring 2025 compared with spring 2024 and said enrollment and credit-hour performance has the university “trending at above 100% of our overall credit hour goals for this fiscal year.” Ortiz attributed a $2.5 million year-over-year variance in state appropriation revenue in the first six months to voucher timing; he said the university expects reimbursements to be fully vouchered by third quarter.
On the expense side, Ortiz pointed to salary and vacancy dynamics: salary increased about $800,000 year over year but was offset by roughly $750,000 in vacancy savings and a change in the timing of state group insurance premium payments. He also said the university recorded $0 in scholarships, awards and grants in the first half of FY25 because it leveraged Pell 55 grant funding to cover those costs; that reallocation allowed the university to invest in academic affairs, enrollment management and student affairs.
Ortiz also described actions taken after an ISAC announcement that MAP awards would be cut for spring 2025. He said the administration covered the resulting approximately $600,000 shortfall affecting about 2,500 students by reallocating $400,000 of salary savings and increasing NEIU for You Scholarships for eligible students. Ortiz described the funding steps in his presentation; the committee asked for further documentation of the amounts and reallocations.
Trustees asked about risks to the projected surplus, including possible federal grant cuts and reduced indirect cost recoveries on federal awards. Ortiz said grant reductions would affect restricted budgets and could indirectly pressure unrestricted operations if the university had to absorb costs, and he called the situation “uncharted territory.”
The presentation concluded with a reminder that the FY25 forecast remains sensitive to changes in enrollment, reimbursements and interest rates; administrators said they will continue monitoring and will present an updated forecast at the next quarterly review.
