PSC facing $500,000 budget shortfall in 2027 following personnel cuts

Prairie State College officials presented a balanced final budget for fiscal year 2027 on Sept. 29, with personnel spending cuts accounting for much of the improvement.

The final budget shows roughly $62.3 million in revenue and $62.8 million in expenditures across all funds, leaving a projected $502,900 shortfall after transfers. Back in August, officials reported a near $8 million shortfall in the college’s 2026-27 budget.

The college’s core operating funds are projected at approximately $34 million in revenue and $34.6 million in expenditures, resulting in a narrow gap of $631,500 before transfers and reserves. In fiscal years 2025 and 2026, the operating gap neared $6 million.

The education fund budget also saw substantial changes from the tentative plan approved in August. The preliminary budget projected an approximate $8.5 million deficit in education before transfers and reserves and then dropped to $697,800 in the final budget.

Assistant controller Denise Edwards cautioned that the near $7.8 million reduction in the education fund’s deficit from the tentative plan should not be considered entirely cash savings. About $2.7 million came from separating depreciation — a noncash accounting change — while lower wage and benefit estimates accounted for much of the remaining reduction.

“The largest change, as you will see, is the personnel costs,” Edwards said. 

Wages were budgeted at $21 million, about $2.51 million below fiscal year 2026 actual earnings. Salaries and benefits amount to $23.4 million, a 10.5 percent drop from last year’s budget.

Anita Moore-Bohannon, vice president of student affairs and executive lead for finance, tied the reduced expenses to recent staffing cuts. In December 2025, Prairie State announced its restructuring and position elimination plan to address ongoing financial struggles. Cook County College Teachers Union Local 1600 criticized the institution for the staffing cuts and called on trustees for greater financial transparency. 

“I think it’s important to note that the 2026 figures are unaudited and that our 2027 budget is a plan,” Moore-Bohannon said. “We’re going to actually monitor these costs as the year progresses.” 

Prairie State saw a decline in enrollment by 30 percent between 2010 and 2020 and proceeded to drop another 20 percent following the COVID-19 pandemic. Frozen tuition rates and delayed property taxes have also contributed to the college’s monetary strains.

“Financial discipline matters. Those expenditure cuts became a great sacrifice to this college,” said president Michael Anthony. “However, that sacrifice means that this college is poised to move boldly into the future for many more generations.”

Some costs are expected to rise and were accounted for in the final budget, Moore-Bohannon said. Medical insurance is projected to increase 16 percent starting in January. The budget also increases fixed-asset spending from about $189,000 to $411,200 and “other” operating expenses from about $1.3 million to $3.7 million, offsetting some personnel savings.

“Labor remains, as it should, the largest part of our budget,” Anthony said.

The final budget moves about $3.8 million from the working cash fund into the education fund. Moore-Bohannon said while the transfer supports the education fund, it does not bring in recurring revenue.

Board approves lobbying agreement

The board approved a lobbying agreement with Darden & Associates for up to $60,000 for the 2026-27 academic year. The agreement will bill the college $5,000 monthly and was factored into the final budget.

“I’ve had three lobbyists at this institution since I’ve been here […] The most productivity I’ve received out of our lobbying efforts has been from Darden & Associates,” Anthony said. Darden & Associates is founded by Cornel Darden, Jr., chairman of the Southland Black Chamber of Commerce.

Record-high scholarship awards

The Prairie State College Foundation awarded over $450,000 in scholarships in 2026, and over $143,000 has already been awarded this fall, its executive director announced. Deborah Smith Havighorst praised the foundation team and college staff for the “completely unprecedented” spike in funds. “This is a result of hard work by my team. It’s a result of the investment the college made in the foundation.”

Employment contract vote tabled again 

The Sept. 29 agenda reintroduced a possible action to approve Anthony’s 2028 through 2030 employment contract. The board was expected to vote on the contract in August but did not reach a final decision. No vote was taken during the September meeting, and negotiations remain ongoing.