Report shows JSU only has enough cash to operate for a week


Yeah, IHL might face a lawsuit over this if other schools were fronted money and JSU wasn't. AAMU & ASU sued the State of Alabama in the 80s and got a large payout settlement.

Go get that check!
 

I'm pretty sure JSU wouldn't be getting over that 10,000 student threshold anytime soon. It would be interesting to see which of the school's programs will survive the school's self-imposed budget cuts or the cuts IHL will recommend once the audit from the accounting firm is completed.

Tigerpride said:
Percent change in enrollment and total fall enrollment by university

• University of Mississippi: 1.7%, 24,250 students
• Mississippi State University: 3.6%, 21,622 students
• University of Southern Mississippi: 0.0%, 14,554 students
• Jackson State University: 0.1%, 9,811 students
• Alcorn State University: 6%, 3,730 students
• Delta State University: 3.7%, 3,587 students
• Mississippi University for Women: 10.7%, 2,960 students
• Mississippi Valley State University: 8.4%, 2,502 students

System-wide: 2.5%, 83,016 students
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I don't blame JSU's officials for standing up for the safety of it's students. It would be much worse if students had gotten hurt due to dilapidated and dangerous infrastructure of certain buildings on campus.
 
I smell a rat. Of the 5 smaller Universities in the Mississippi, 4 of those Presidents got raises! Carolyn Meyers didn't get a raise. :(

The College Board is giving raises to presidents of four public universities.

Minutes show the board approved $10,000 pay increases in closed session in September for the presidents of Alcorn State University, Delta State University, Mississippi University for Women and Mississippi Valley State University.

Each raise was effective Oct. 1.

College Board spokeswoman Caron Blanton says each man now receives $215,000 a year in state funds, plus additional funds raised privately by university foundations. With varying supplements, the presidents are paid the following amounts each year:

—$250,000 for Alcorn State President Al Rankins Jr.

—$243,875 for Delta State President Bill LaForge.

—$245,000 for MUW President Jim Borsig

—$225,000 for MVSU President William Bynum Jr.


http://www.wdam.com/story/33451208/4-mississippi-university-leaders-get-10000-a-year-raises
 
chocalate_topaz said:
STEP UP Alumni, STAND UP! Fight for what is right and show you CAN bridge the gap. Less finger pointing and more check writing.
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I agree! all alumni's need to step up to the plate and write a check to bridge the gap and start other fundraisers to recoup some of the funds for the reserve.
 
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I can't believe no one is paying attention to what the IHL just did, and the chess game they are playing:

  1. First, they halted all of the enrollment momentum the university had.
  2. They approved funding for all of the necessary upgrades and new building infrastructure, but didn't provide any money "yet".
  3. The peddled this article out to the media to force Carolyn to resign amid public exposure and knowledge.
  4. Next moves:
    • Use additional cash reserves to help pay for the 3rd party audit.
    • Broker deal with JSU to likely remove leverage with Memorial Stadium.
    • Halt all new development with the University.
    • Drop enrollment the following year.
Are yall not paying attention to this? The one entity that approves "all financial operations" for the University actually let this happen on "their watch" and now they are sacrificing the leader of the school? This reeks of discrimination and is likely retaliation to Carolyn for stepping on too many toes. Someone needs to open an investigation into the IHL immediately.
 
GoodFella said:
Its been over a week and JSU is still operating lol
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Not to burst your bubble young brother, but do you know what this means???

For every $1 that the school brings in, it owes another $8.74 in debt due to bonds. Ever since fiscal-year 2012, the school has continued to dip into its reserves, rather than operating revenue, to square up its annual debts.
http://www.jacksonfreepress.com/news/2016/nov/01/turmoil-jsu-state-applies-heavy-hand/

It means for every $1 the school generates, it owes $8.74, which means the school is spending its whole paycheck on bills without saving any of it. And don't let an $8 million emergency occur, which is quite common at universities the size of JSU. That would completely wipe out any savings/reserve funds. The school has means to pay all of its bills as of now with that $1 revenue, but how long will it take to pay down that $8.74 debt since the interest keeps growing on that money??? Either something wouldn't be happening soon or a few programs will get scaled back or cut. IMO, it would be a combination of all three. I'm sure SodexoMagic can kiss their food service contract bye. Once Dr. Meyers step on a few toes to get a contract with the company her daughter and son-in-law worked for, I knew then it was just a matter of time before they had something on her. I'm sure JSU would be just find, but them other folks have ways of getting back at someone.

Say what you want, but this does places a burden on operating expense. Also, it seems like Dr. Meyers knew this for over a year, which is when she should have came up with cost cutting measures. Even though the article states that the IHL Board took no action then. The only action they could have taken was take over the university, which they just did by forcing Meyers out.

"Escalated" might be too gentle a word. Over the last four years, JSU has continued to pull from its cash-on-hand funds to cover operational expenses, and each year spent whatever cushion it had until its reserves were only enough to cover a little over a week in expenses. Combine that with an increased debt burden due to expansion and renovation, and the school had slowly started to sink below a water line it could not expect to meet without increasing revenue. The IHL met with JSU last year to discuss poor financial reports but took no action then.
http://www.jacksonfreepress.com/news/2016/nov/01/turmoil-jsu-state-applies-heavy-hand/

Dr. Meyers knew she had mess up, because in her letter the only thing she could demand from them (IHL Board) is that they could not make her instantly homeless within 30-days, which is the law in most states. Now she's no longer JSU's president, I'm sure she has a story to tell, which we have yet to hear. Maybe she will eventually come out and tell her side of the story or they somehow made sure she remained silent on that by having her sign some non-disclosure agreement.
 
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JAG89 said:
Not to burst your bubble young brother, but do you know what this means???

For every $1 that the school brings in, it owes another $8.74 in debt due to bonds. Ever since fiscal-year 2012, the school has continued to dip into its reserves, rather than operating revenue, to square up its annual debts.
http://www.jacksonfreepress.com/news/2016/nov/01/turmoil-jsu-state-applies-heavy-hand/

It means for every $1 the school generates, it owes $8.74, which means the school is spending its whole paycheck on bills without saving any of it. And don't let an $8 million emergency occur, which is quite common at universities the size of JSU. That would completely wipe out any savings/reserve funds. The school has means to pay all of its bills as of now with that $1 revenue, but how long will it take to pay down that $8.74 debt since the interest keeps growing on that money??? Either something wouldn't be happening soon or a few programs will get scaled back or cut. IMO, it would be a combination of all three. I'm sure SodexoMagic can kiss their food service contract bye. Once Dr. Meyers step on a few toes to get a contract with the company her daughter and son-in-law worked for, I knew then it was just a matter of time before they had something on her. I'm sure JSU would be just find, but them other folks have ways of getting back at someone.

Say what you want, but this does places a burden on operating expense. Also, it seems like Dr. Meyers knew this for over a year, which is when she should have came up with cost cutting measures. Even though the article states that the IHL Board took no action then. The only action they could have taken was take over the university, which they just did by forcing Meyers out.

"Escalated" might be too gentle a word. Over the last four years, JSU has continued to pull from its cash-on-hand funds to cover operational expenses, and each year spent whatever cushion it had until its reserves were only enough to cover a little over a week in expenses. Combine that with an increased debt burden due to expansion and renovation, and the school had slowly started to sink below a water line it could not expect to meet without increasing revenue. The IHL met with JSU last year to discuss poor financial reports but took no action then.
http://www.jacksonfreepress.com/news/2016/nov/01/turmoil-jsu-state-applies-heavy-hand/

Dr. Meyers knew she had mess up, because in her letter the only thing she could demand from them (IHL Board) is that they could not make her instantly homeless within 30-days, which is the law in most states. Now she's no longer JSU's president, I'm sure she has a story to tell, which we have yet to hear. Maybe she will eventually come out and tell her side of the story or they somehow made sure she remained silent on that by having her sign some non-disclosure agreement.
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It's about time you change subject because you sound stupid and uniformed as hell.
 
JAG89 said:
Not to burst your bubble young brother, but do you know what this means???

For every $1 that the school brings in, it owes another $8.74 in debt due to bonds. Ever since fiscal-year 2012, the school has continued to dip into its reserves, rather than operating revenue, to square up its annual debts.
http://www.jacksonfreepress.com/news/2016/nov/01/turmoil-jsu-state-applies-heavy-hand/

It means for every $1 the school generates, it owes $8.74, which means the school is spending its whole paycheck on bills without saving any of it. And don't let an $8 million emergency occur, which is quite common at universities the size of JSU. That would completely wipe out any savings/reserve funds. The school has means to pay all of its bills as of now with that $1 revenue, but how long will it take to pay down that $8.74 debt since the interest keeps growing on that money??? Either something wouldn't be happening soon or a few programs will get scaled back or cut. IMO, it would be a combination of all three. I'm sure SodexoMagic can kiss their food service contract bye. Once Dr. Meyers step on a few toes to get a contract with the company her daughter and son-in-law worked for, I knew then it was just a matter of time before they had something on her. I'm sure JSU would be just find, but them other folks have ways of getting back at someone.

Say what you want, but this does places a burden on operating expense. Also, it seems like Dr. Meyers knew this for over a year, which is when she should have came up with cost cutting measures. Even though the article states that the IHL Board took no action then. The only action they could have taken was take over the university, which they just did by forcing Meyers out.

"Escalated" might be too gentle a word. Over the last four years, JSU has continued to pull from its cash-on-hand funds to cover operational expenses, and each year spent whatever cushion it had until its reserves were only enough to cover a little over a week in expenses. Combine that with an increased debt burden due to expansion and renovation, and the school had slowly started to sink below a water line it could not expect to meet without increasing revenue. The IHL met with JSU last year to discuss poor financial reports but took no action then.
http://www.jacksonfreepress.com/news/2016/nov/01/turmoil-jsu-state-applies-heavy-hand/

Dr. Meyers knew she had mess up, because in her letter the only thing she could demand from them (IHL Board) is that they could not make her instantly homeless within 30-days, which is the law in most states. Now she's no longer JSU's president, I'm sure she has a story to tell, which we have yet to hear. Maybe she will eventually come out and tell her side of the story or they somehow made sure she remained silent on that by having her sign some non-disclosure agreement.
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Didn't read anything you just posted lol. The article says JSU only has enough cash to operate for one week. It's been over a week now and JSU is still operating. Worry about that teacher at SU offering sex for a passing grade #OOPS
 
Correct me if I'm wrong, but I believe that savings isn't there to be used for day to day operations. Day to day operations are covered by their operating budget. That "operate for a week" phrase refers to if some emergency happened that is over and above their daily operating budget. Then they'd have to dip into that $7M thay have left in reserve. So, as of now, no such emergency has happened.
 
GoodFella said:
Didn't read anything you just posted lol. The article says JSU only has enough cash to operate for one week. It's been over a week now and JSU is still operating. Worry about that teacher at SU offering sex for a passing grade #OOPS
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Now I see why JSU is in bad financial shape. The article stated that not only JSU reserve funds have dropped dangerous low, but for every $1 it generates, it has $8.74 in debt, which means the school is spending its whole check to stay above water. Let me give you an example, if you make $1,000 per week, but owe $8,740 in bills per week, then that means you are spreading that $1,000 per week pretty thin to stay afloat. Unless someone was stealing, something had to have happened to the school's reserve funds to drop that low. One can only assume that the school was dipping into its reserves funds way too much to pay some bills/operating expenses. Operating expenses/bills should have only been paid with monies generated through the school's revenues and not reserve funds. Reserves funds are primarily for emergencies and if the school have a $10 million emergency, the school would be in deep trouble.
 
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MetroPhillyTiger said:
Correct me if I'm wrong, but I believe that savings isn't there to be used for day to day operations. Day to day operations are covered by their operating budget. That "operate for a week" phrase refers to if some emergency happened that is over and above their daily operating budget. Then they'd have to dip into that $7M thay have left in reserve. So, as of now, no such emergency has happened.
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You are correct, but the school is running on a tight budget, especially when it generates $1 for $8.74 in debt. Therefore, the school has no room for emergencies in case one happens. As I previously stated, I do believe JSU will be fine, but there will be some cutbacks and reductions in order to rebuild those reserve funds back to a normal level. And if the school is hit with a major financial emergency, I do believe the IHL Board would allow it to declare financial exigency, such as what SU and other Louisiana schools did when Jindal and the State of Louisiana drastically cut the budget for higher education. Financial exigency is basically allowing an university to issue IOU's and furloughs as long as it has a plan to financially recover. The down side, financial exigency could be critical to a school's accreditation.
 
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And to help those who don't understand what is meant by having only week's worth of reserve funds to operate. IF for some strange reason the university abruptly stop receiving any type of revenue, the school would only have a week's worth of funds to keep its doors open, which I doubt would happen.
 
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