Rider Facing ‘Severe Cash Deficit’ Threatening Core Operations, University President Warns

LAWRENCEVILLE, N J - Rider University President John R. Loyack has issued a stark warning to the campus community about the institution's financial condition, saying that the university faces a severe cash deficit that could jeopardize its ability to meet “core financial obligations later this fiscal year.”

In a candid message to students, faculty, staff, families and alumni, Loyack acknowledged that Rider's financial struggles are "more severe than expected" and warned that without decisive action, the university's future could be jeopardized.

"Rider faces a severe cash deficit this year, one that, if left unaddressed, would jeopardize our ability to meet core financial obligations later this fiscal year and likely would imperil the University's future," Loyack wrote. "Unless we rebuild our foundation, and we have options to do so, the future we aspire to will remain out of reach."

The president attributed the crisis to a combination of factors including market conditions, enrollment and retention challenges, reduced residential occupancy and several extraordinary unforeseen events. These pressures come as higher education institutions nationwide grapple with declining demographics of college-aged students, rising operating costs, shifting student expectations and increased competition.

Loyack, who was appointed president earlier this year, emphasized that Rider's financial difficulties are not new. The university has already endured years of painful cuts, including employee departures, early retirements of senior faculty, reduced compensation and hours, closed programs and delayed facility investments.

"For years, the University has relied on extraordinary sacrifices from the people who make up this community," he said. "You have had to say goodbye to valued colleagues, experience the early retirement of senior faculty, face reduced compensation and hours, and adapt to closed programs and delayed investments in our facilities."

Despite these difficulties, Loyack expressed optimism about the university's potential, envisioning a future Rider with new and relevant majors, expanded athletics and enhanced experiential learning opportunities.

However, he made clear that reaching this vision will require restructuring.

"Restructuring will be required, not as an end in itself, but as the essential first step toward renewal," Loyack stated. "With a sound financial base, we will be able to reinvest in our students' experiences, strengthen and grow our academic programs, and enhance Rider's reputation and enrollment for years to come."

To address the crisis, Loyack announced that he and Provost Bidle will host small-group conversations with faculty, staff and student leaders to gather input and insights.

The president also invited the broader community to submit ideas via email, asking for suggestions on areas of greater efficiency, financial savings and new opportunities.

"What should Rider be doing differently?" Loyack asked. "What areas of greater efficiency or financial savings can be found in current practices? What opportunities should we be pursuing? How can we best position Rider for long-term strength and leadership in higher education?"

Following these discussions, Loyack said he will present the Board of Trustees with "bold and significant options" to address the university's financial realities, emphasizing that "all options" must be on the table as the board fulfills its fiduciary responsibility.

The president also stressed the critical importance of enrollment, calling it the "lifeblood" of the tuition-dependent institution. He urged every member of the community to prioritize student success and enrollment, whether through encouraging prospective students to attend, helping current students complete their degrees or promoting Rider within their networks.

"Only with a strong enrollment can we meet our financial challenges and begin building toward a stronger future," Loyack said.

While acknowledging that the university does not have easy choices ahead, Loyack maintained that Rider's future can be strong if the community acts decisively and works together with honesty, determination and focus.

"Confronting our challenges together with honesty, determination and focus, we can and will rebuild Rider's foundation and secure the vibrant future we all want for this University," he concluded. "We can create the Rider of tomorrow: an institution that stands on solid ground, serves students with excellence and inspires pride for generations to come."

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