Thibodaux, LA — Rising inflation has driven up costs at Nicholls State University, forcing cost cuts while trying to maintain academic quality.
According to the Nicholls State University 2024-2025 Operating Budget Request, instructional costs have risen by 7.2%, climbing from $29.85 million to $34.01 million. Salaries and benefits for full-time employees now total $29.89 million in salaries and $11.46 million in benefits, reflecting increased expenses in faculty and staff retention.
While state appropriations have increased by 15% ($21.88 million to $25.13 million), the university has had to rely on tuition and fee revenue, which jumped 17% ($38.53 million to $45.07 million). Despite these increases, financial pressures persist, requiring careful cost management.
Executive Vice President of Finance and Administration Terry Braud says that increased costs for utilities, insurance and salaries have placed significant financial pressure on the university.
“Universities are not only educational sites but operating businesses as well,” Braud said. “Market-driven prices for goods, rising insurance premiums, utility hikes and increased personnel costs are among the biggest contributors to our growing expenses.”
To address these financial challenges, Nicholls has made strategic cuts, notably reducing plant operations and maintenance spending by 0.8%, signaling efficiency efforts or outsourcing in campus maintenance. Meanwhile, public service funding has surged by 157%, indicating a shift in investment toward community engagement and partnerships.
The university has also faced rising expenses in non-academic sectors. Athletic salaries have increased by 8%, reaching $3.91 million, reflecting broader inflationary pressures on personnel costs. However, revenue from auxiliary services such as housing and dining has remained flat at around $5.46 million, suggesting that these services are not offsetting other financial burdens.
Looking ahead, Nicholls State continues to explore ways to balance costs while maintaining academic excellence. “We are aligning our educational goals with our financial capabilities to ensure sustainability,” Braud said.
As inflation persists, universities remain adaptable, leveraging financial strategies to balance rising costs with the ongoing mission of providing quality education.
