The economic crisis has taken its toll on many universities across the nation, including Creighton.

Creighton has recently taken many steps aimed at preventing an economic crisis on campus and also keeping the current finances strong.

Creighton University President the Rev. John P. Schlegel, S.J., updated the Creighton community on the university’s current economic status in a recent President’s Update.

Schlegel explained the need to make difficult decisions in order to maintain working finances that focus on the student body.

Last fall, the university implemented a hiring freeze that Schlegel said saved over $400,000 for the upcoming fiscal year.

Recently, the School of Medicine laid off nine employees to compensate for the improvement of financial resources.

“While necessary for the fiscal health of the institution, these kinds of steps are difficult for everyone involved and require our compassion and assistance during the transition process,” Schlegel said in the President’s Update.

Dan Burkey, vice president of Administration and Finance, said that Creighton’s need to lay off those employees at the School of Medicine was a difficult but necessary move to stay ahead of a competing healthcare system in the region.

“The School of Medicine is in the process of restructuring its clinical operations and developing business plans to address challenges in the competitive Omaha healthcare market,” he said.

“A critical element of improving financial performance is the objective evaluation of expenses and staffing in relation to revenue production.

“This ongoing process has recently resulted in the elimination of several positions.”

According to the Update, the focus remains on the cost of attendance and financial assistance for students.

The president also announced a supplement to the financial aid budget that was put in place to cover the growing financial needs of students and their families.

Ernie Goss, Ph.D., professor of economics, said the problems Creighton has financially are rooted in the endowments and the struggle to keep them strong, the limits that individuals have to spend and the effects of President Obama’s budget proposals.

“[The Obama administration] proposes limiting the deductibility of donations to charity for high-income individuals,”

Goss said.

“That’ll have some detrimental impacts on Creighton.”

Goss said the work the government is taking on to ensure recovery from the recession can have positive and negative effects.

He said he believes the government has made more mistakes in this crisis than positive moves toward economic recovery.

“Government missteps can make the recession last longer. Thus far, we’ve had more missteps than we’ve had correct steps,” Goss said.

Goss also said the current stimulus package from the Obama administration will benefit many different areas, including education and universities like Creighton.

“In terms of students, there’s a lot in there. It helps Creighton in terms of student loans, and there’ll be a lot of increases in student loans,” Goss said.

“However, those loans will come directly from the government rather than from some of the smaller ones.”

The university recently announced a tuition increase of 3.5 percent, the smallest increase in nearly 50 years, for the upcoming school year, which was also addressed in the President’s Update.

Burkey said students’ financial aid was kept in the forefront while discussions and planning went into next year’s budget.

“The university worked to keep the increase to a minimum through aggressive expense control and reduction efforts,”

Burkey said.

“Understanding that any increase could be a challenge to some students and their families, additional financial aid resources were also added into next year’s budget.”

Burkey also said Creighton is using its fundraising efforts to help raise donor support for financial aid.

The combination of the slight increase in tuition and the stimulus package will benefit students and Creighton in the end, Goss said.

“In the long run, it may contribute to higher tuition costs. [Creighton] takes part of that and [students] take part in the benefits,” he said. “It’s not necessarily good for the taxpayer who has to pay for that.”

Goss said one of the ways Creighton will continue to focus on strong finances is to forgo some pay raises.

Burkey added that there will not be cuts in pay or in benefits for faculty and staff even though raises based on merit will not be included in next year’s budget.

Schlegel said these steps are part of the university’s goal in maintaining the financial security of the university and its students.

“This is not a time for hand-wringing or excessive worry, but the conditions do require vigilance and action on our part,” Schlegel said in his update to the university.

“I am confident that the steps we are taking will help ensure a successful future for this great institution.”