Jacksonville University Finances

[jaxlongtimer]

Looks like JU may be pushing to the edge on its financial condition per the report below.  Wonder how this will impact their investment in the Law School downtown, among other issues, as they do an extensive review of operations and expenses.  Surprised by their expansion into law and medicine recently given this report.

Hope they can navigate out of this quandary successfully.

Jacksonville University’s financial woes paint an uncertain future

Jacksonville University is planning to cut costs in a fight to regain financial health as the school's breach of a debt covenant has auditors calling its future into question.

As it cuts costs and hikes tuition, the administration says its survival depends on financial changes that have not been fully implemented yet, according to internal documents reviewed by the Business Journal.

The university, boasting one of the largest alumni networks on the First Coast, failed to meet a key debt covenant for the fiscal year ending June 30, 2024, casting significant doubt on its ability to continue operating without substantial intervention, according to the recently compiled report...

...Compounding the financial woes are debt obligations tied to large-scale capital projects, including the addition of its medical and law schools, and operating expenditures that have outpaced revenue growth.

https://www.bizjournals.com/jacksonville/news/2024/12/02/ju-2024-financial-report.html?utm_source=st&utm_medium=en&utm_campaign=EX&utm_content=JA&ana=e_JA_EX&j=37694710&senddate=2024-12-02

[Jax_Developer]

A lot of universities expanded shortly after or even during COVID - not realizing (or prepared?) that COVID was quite literally the catalyst for that demand shock. I have to imagine this trend is impacting several colleges all over the country. I knew a lot of people that went for a grad degree because the job market wasn't alive for 2 full cycles.

[jaxlongtimer]

The UF colleges participating in the establishment of the facility include the Warrington College of Business; the Herbert Wertheim College of Engineering; the College of Medicine; the College of Public Health and Health Professions; the Levin College of Law; and the College of Design, Construction and Planning.

Looks like some of these UF programs will be competing with JU and UNF.  Wonder what they are thinking now.  With a national demographic decline beginning for years to come in the student pool, it has to be tough on some level.  Maybe Florida and Jacksonville's growth will provide some cover.

Especially notable would be UF having a law school in Downtown only blocks away from JU's.