PSC reports near $8 million deficit as enrollment plummets

Prairie State College ended fiscal year 2026 with a $3,350,829 million deficit across its two primary operating funds as officials pointed to declining enrollment and delayed property tax revenue as factors contributing to the college’s financial pressures.

The 2026-27 budget shows revenues of roughly $45.6 million and expenditures roughly $37.8 million — an estimated $7.8 million deficit overall. Prairie State’s enrollment has declined 50 percent since 2012, prompting leadership to make spending cuts and develop an action plan to adjust.

Assistant Controller Denise Edwards presented the year-end financial report during the Prairie State College board of trustees meeting Tuesday, Aug. 25.

The college’s education fund brought in about $29,188,989 million in revenue during fiscal year 2026, approximately $1.6 million more than the previous year. Expenses totaled about $33,714,208 million, leaving the fund with a roughly $4.5 million deficit.

The operations and maintenance fund finished with a surplus of about $1,175,390 million. Combined, the two funds ended the fiscal year with a deficit of approximately $3,347,426 million, an improvement from the roughly $5,911,230 million deficit the college reported for fiscal year 2025.

Financial pressures have continued into fiscal year 2027. Edwards said the college was operating with about $1,332,479 less income than at the same point last year. Total college cash stood at approximately $15.2 million as of July 31, compared with about $18,303,000 million at the same point last year.

Declining enrollment

The school saw a 30 percent decline in students from 2010 to 2020, said president Michael Anthony, who became president in 2021, during a special meeting on Aug. 4 where he presented an emergency plan.

The COVID-19 pandemic further strained enrollment, causing another 20 percent decline from 2020 to 2022. At the time, one-third of funding came from Springfield, and an infamous two-year budget impasse during the Gov. Bruce Rauner administration meant the college drew on reserves to balance its budgets. All the while, board leadership at the time maintained or increased spending, namely on labor.

Tuition has been frozen since 2018. And a delay in Cook County property bills is agitating the problem. Its second installment of 2025 bills is two months behind, now due October 1. The college typically receives property tax revenue around July and December, Edwards said, but the delay means the next payout is not expected until January. 

Prairie State also receives tax property revenue from Will County, which has not seen a delay in bills. Two-thirds of the college’s property tax dollars stem from Cook County.

The college has responded by reducing spending, Edwards said. “We do notice and realize that there is a financial issue that we have, and we are making the necessary adjustment[s] to be able to sustain that,” Edwards said. Expenses in the education fund through July were about $1.44 million, slashed by 50 percent compared with roughly $2.89 million at the same point during the previous fiscal year.

Official business

Trustees also approved the college’s tentative fiscal year 2027 budget. The tentative spending plan can be revised before returning to the board for final approval following a public hearing scheduled for Sept. 29 at 5:30 p.m.

In other action, trustees rejected a proposed three-year cleaning services contract with HES Facilities Management at an annual cost of $617,460 after failing to receive approval.

The board’s consent agenda included several other financial and personnel matters. Trustees approved the purchase of $133,204.75 in automotive learning tools, a Microsoft education agreement with a total authorized amount of up to $42,388.72, and a $26,078.87 library database subscription.

Trustees also approved the appointment of Marlena Avalos as dean of Academic Services at a salary of $110,000, effective Aug. 25.

Anthony briefly addressed the severe storms that affected the campus and surrounding communities, thanking faculty, staff and students for helping the college recover. “The campus was rocked by these storms,” Anthony said, adding that communities throughout the college district were also heavily affected. “It’s been very difficult to recover from that.”

The Prairie State College Foundation also reported providing approximately $436,000 for scholarships and faculty projects during its current fiscal year. Because the foundation’s spending budget allows for $158,000, additional fundraising was needed to cover the increased support. The foundation also received another $100,000 donation in July from a donor to support students in the 60411 ZIP code, which includes parts of Sauk Village, Chicago Heights, South Chicago Heights, Lynwood, and Ford Heights.

The board later entered a closed session to discuss Anthony’s employment contract for 2028 through 2030 following the closed session. After returning to open session, trustees did not reach a final decision on Anthony’s proposed employment contract for 2028 through 2030.