Report: CSU, UNC had ‘weak’ financial health

Colorado State University and the University of Northern Colorado had “weak financial health” during fiscal 2011 to 2012, according to a new report to the legislative Joint Budget Committee.

The universities scored below “moderate financial health” based on an assessment done by state Joint Budget Committee staff members. The report examined publicly funded universities using a financial analysis index with a 10-point scale.

Universities scoring a 1 have very little financial health, according to the scale. Institutions scoring a 3 have a relatively stronger position, while universities with a 10 have the strongest financial situation.

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CSU scored a 2.6 while UNC scored a 2.0, according to the report. The report used institutions’ financial statements to measure resources, debt and performance.

The report came as CSU saw funding cuts from the state of Colorado and as the university invested in improvements to its facilities, said Rich Schweigert, chief financial officer of the CSU system. He noted that an analysis should cover a number of years and use a variety of indices to assess a university’s overall financial health.

UNC officials have used the index as a tool for budgeting and financial planning as well as during presentations at UNC trustees’ meetings, reads a statement issued by the university.

The index, however, provides a “snapshot” financial reference for a particular point-in-time and does not include UNC’s strategic plans, goals and priorities, according to the statement.

“Therefore, it’s not appropriate to use the (index) for drawing conclusions about whether we’re delivering on our mission or have the financial capacity to continue supporting student success in a dynamic environment,” the statement reads.

The report focuses on the financial struggles of two institutions, Adams State University and Western State Colorado University, which scored below “0,” or -0.3 and -1.3, respectively.

“Both institutions are highly leveraged,” the report states.

The University of Colorado scored a 3.6; Colorado School of Mines a 4.3; Fort Lewis College, 1.8; Metropolitan State University of Denver, 3.7; and Colorado Community College System, 5.9.

The report comes amid a proposal by Gov. John Hickenlooper to raise higher education funding by 15.5 percent, or $101.8 million, if universities agree not to increase tuition by more than 6 percent. The increase would restore inflation-adjusted higher education funding to the level of the mid-2000s, according to a legislative report.