University of Idaho falls below 5 percent target for reserves

The University of Idaho fell way below the Idaho State Board of Education’s target reserve range for fiscal year 2018 after it experienced a $21 million loss.

The state board was presented with audit reports at its Thursday meeting that showed UI was one of two institutions that didn’t meet the board’s 5 percent reserve target this year.

The reserve money can be used to bridge “uneven cash flows,” according to information provided to the board.

UI dipped to minus-1.6 percent, and it’s the only one of the state’s four-year institutions that fell into the negatives.

Both Lewis-Clark State College and Idaho State University met the 5 percent reserve threshold at 5.1 and 5.7 percent, respectively.

Boise State University’s reserves hit 3.75 percent.

Brian Foisy, UI’s vice president for finance, said the university had a “financially difficult year” in large part because of “continuing enrollment challenges.” Fall enrollment was down 2.6 percent from the previous year.

“Our response is to curtail the base budget expenses to curb the $21 million loss,” Foisy said.

Last December, UI staff announced the school’s budget model was not viable in the long term, Foisy said. That led to the creation of a committee, which completed its work about a month ago. A new budget plan is expected to be implemented soon.