For the 2020 tax period, Loyola saw a slight increase in revenue—but increased expenses brought on by COVID-19 resulted in Loyola’s net income falling by almost half, according to tax documents recently obtained by The Phoenix.
During this time, Loyola President Jo Ann Rooney saw an $11,055 pay cut, from $798,888 in 2019 to $787,833 in 2020, according to the university’s 990 forms—a tax form filled out by non-profit organizations.
Over the last couple of years, Rooney has seen a consistent increase in salary. From 2018 to 2019, Rooney saw a raise of more than $150,000—from $646,636 in 2018 to $798,888 in 2019.
In response to the COVID-19 induced budget crunch, Rooney took a pay cut alongside other administrators, The Phoenix reported. Vice presidents lost 10% of their salaries, deans lost 5% of their salaries and, “All other senior administrators,” lost between 2.5% and 3% of their salaries.
Loyola’s 990 shows the school saw revenue tick up slightly but, despite that, increased expenses meant total net income fell by almost half at 47.2% percent.
Over the 2019 school year, Loyola’s net income—the total revenue (all of the money Loyola made for this tax period) minus the total expenses—was $75 million, but due to the effects of the pandemic, Loyola’s net income for 2020 went down significantly to $39.6 million.
One of the reasons Loyola saw a decline in its net income was because of salaries, other compensation and employee benefits as they’re one of Loyola’s biggest expenses, according to Senior Associate Vice President and Controller, Teresa Krafcisin.
Of total expenses, Loyola’s employees were responsible for $296.9 million of those costs with Loyola’s top 25 paid employees taking up $8.4 million and the top five paid employees taking up $3.3 million of those expenses.
Krafcisin said a part of why Loyola saw high employee expenses in 2020 was due to the tenured faculty voluntary transition incentive program, which cost Loyola $22.3 million when the university paid about 80 professors to retire.
Even with her pay cut, Rooney remained the second-highest paid employee at Loyola—only beaten out by former men’s basketball coach Porter Moser who made $1.1 million.
Other top-paid employees included Senior Vice President of Strategy and Innovation Margaret Faut Calahan who made $540,605, Dean of the School of Law Michael J. Kaufman who made $435,341, and finally Senior Vice President, Chief Financial Officer (CFO) and Chief Business Officer (CBO) Wayne Magdziarz who made $408,173.
Room and board credits issued in 2020 also contributed to the overall decline, as Loyola had to close its residence halls and dining halls during the spring 2020 semester due to COVID-19. Loyola issued approximately $13 million in refunds for room and board, according to Krafcisin.
Loyola’s revenue from room and board for the 2019 tax period was $629.5 million, The Phoenix previously reported.
Most of the revenue Loyola saw last year came from tuition costs, Kafcisin said. In this tax period, Loyola made $760.8 million in tuition costs, bringing Loyola’s total revenue—not subtracting expenses—to $863.4 million.