The Universities of Wisconsin released a financial assessment report for UW-Milwaukee along with 11 other universities on Sept. 6, hoping to address the long term financial impacts of declining enrollment, subpar retention rates and the shockwave from a tuition rate freeze.
The report, conducted by Deloitte, showed the number of enrolled students at UWM and its branch campuses at Waukesha and Washington counties has decreased by nearly 8,000 students between 2011 and 2023, representing a decline of roughly 29%.
The assessment outlined the issues UWM has with its retention rate, the percent of enrolled students that stay with the institution after one year. In Fall 2021 and 2022, UWM lagged behind system averages by about 3%, presenting another challenge for the university to financially sustain itself from tuition.
These issues, along with a system-wide tuition freeze lasting until 2023, have culminated into a projected $15.4 million deficit for the 2024 financial year. The report shows that UWM’s expenses have continued to outpace its revenues, reaching a projected $523.4 million in 2024. This is compared to only around $508 million in revenues.
The university aims to eliminate this deficit by the 2026 financial year by investing much of its cash reserves into “strategic student success, research, and infrastructure.” This has created a short-term depletion of UWM’s reserves with the hopes that such investments will deliver positive trends for the institution’s revenue.
“With an academic portfolio well-aligned to the regional workforce, a strong location, robust portfolio of graduate and online programs, and D1 athletic programs, UW-Milwaukee has the foundational assets to shift its fiscal trajectory,” the assessment said.
The assessment still noted UWM is in a tight spot and needs to continue working to eliminate its deficit.
“Given past, present and future pressures, UWM is at a critical moment in its history and must continue to undertake decisive and strategic decision making to chart a course to long-term fiscal stability,” the report said.