A glimpse of the plan to address cash-strapped New Jersey City University’s $51 million infrastructure problem includes grants from the state and energy companies, but the school “has to contribute some money,” the school’s chief financial officers says.
“You have to match some of these funds,” CFO Brian Kirkpatrick told the Board of Trustees at Thursday’s meeting. “I am looking at spending $10 million this year and maybe up to $18 million next year …”
Kirkpatrick emphasized further after the meeting that plans are still in the preliminary stages, since much could change once the state Legislature settles on the final budget. He said the school is seeking to utilize historical grants to cover the cost of some leaky roofs like Hepburn Hall, which will cost approximately $3.2 million.
The university is looking to cover other roofing costs by offering tax credits back to the solar company in favor of paying for the new roofs, Kirkpatrick said. One of the grant programs, the state’s Energy Saving Improvement Program, allows government entities to pay for energy-related improvements to their buildings using the value of energy savings resulting from the improvements.
The Jersey City school district joined the program last year, allowing it to bond for up to $62 million to defray the cost of the $122 million energy-saving plan that would be enacted over five phases and be completed in 2026.
NJCU has spent “a lot” of the $10 million in stabilization aid it received in the state budget last year on purchase orders to address infrastructure needs, the CFO told board members. A walk around the 100-year-old institution shows several fenced-off areas with “Please pardon our appearance” signs.
“There is still a lot of things I am still finalizing,” Kirkpatrick told The Jersey Journal. “I am expecting to spend about $9 million (next year) to get about $18 million in capital (toward infrastructure). Those are the rough numbers I have gotten from the consultants so far …”
The university introduced its newest voting board member Raphael Salermo, a New Jersey Turnpike authority commissioner. Salermo is a managing partner of Mar Aquistion Group LLC, a real estate service company, and held leadership positions in the Greater Elizabeth Chamber of Commerce, the Elizabeth Development Corp. and the YMCA of Eastern Union County
Kirkpatrick said Salermo has expertise in capital construction and facilities which will help the university.
Boiler replacements, campus-wide HVAC repairs, new roofs and elevator infrastructure are just some items on the university’s to-do list for its older buildings. In December, the CFO said the university “does not have the debt capacity to borrow funds to correct” what he called “serious infrastructure” issues. Officials said much of the critical maintenance needs have been neglected since the late 1960s.
In June 2022, NJCU announced it was in a financial emergency with a $22.7 million operating deficit. The university spent the next year establishing austerity measures, including cutting its academic portfolio by 33%, to cut the deficit down and is projected to even out by the end of the year.
The university is still hoping for additional funds to come its way as state legislators tweak the 2025 state spending plan in the coming months. The governor proposed $38 million ($3 million less than last year) in state aid to the 100-year-old institution, a far cry from the school’s request for $55 million. The school hoped for $10 million in stabilization aid and $14 million toward infrastructure projects.
The school has created 2024-25 tuition projections ranging from no increase to a 3.5% hike, but ultimately the total amount of state aid will play a large role in setting that number, Kirkpatrick said. The school will likely go with an increase closer to 3.5% to prove to the state it is exhausting all measures for financial stability and to meet contractually obligated increases for unionized salaries.
A 3.5% hike would mean an annual increase of $482.50 a year, not including housing, for an undergrad. For an undergrad living on campus with a school meal plan, the cost could increase as much as $773.80 per year.
No matter the tuition increase, the school will roll the cost of textbooks into the tuition cost, saving students around $1,200 annually, Kirkpatrick said. Officials say they would be the first state university to include textbooks in their tuition.
“We are looking to absorb that to ensure our students graduate, have the tools to graduate and have the books they need,” Kirkpatrick said.
Many of the school’s decisions are expected to be made during its June 24 board of trustee hearing.
The school’s fiscal monitor, Henry Amoroso, gave his recommendations in March that included partnering with a fiscally sound institution to regain financial stability and begin reducing its $287 million debt. In his report, he said the institution and its potential partner needed to make “targeted” capital investments of $20 million by 2026.
