Governors State University President Joyce Ester sent an email to faculty and staff on Oct. 27, announcing that the university has been operating at a loss.
Ester, who began her tenure at GovState four months ago, said she has “begun to look for opportunities that will allow our university to thrive in this difficult economic environment, where state appropriations have been declining for higher education and enrollment remains a challenge.”
Ester’s email stated that, “the board received information regarding the university’s recent financial performance and projections regarding this year’s forecasted performance.”
Ester explained that GovState had an operating loss of $5.5 million in fiscal years 2023 and 2024. She also said that “a Budget-to-Actual Report for fiscal year 2025, which showed an operating loss of $3,418,984 for the year just ended on June 30, 2025.” She clarified that the figure has not yet been audited.
While the university has been able to cover the losses by drawing on the reserve fund, Ester said this is not sustainable. She mentioned a letter the board received “from the institution’s accreditor, the Higher Learning Commission, expressing concern regarding the university’s financial position.”
“With revenue expected to remain flat in the foreseeable future, the university will have to make material adjustments to its expenses in order to bring its spending in line with its resources,” Ester said.
Acknowledging that this information may be new to some, the president emphasized her belief that understanding an issue is the first step toward solving it. She expressed confidence in the university’s ability to reverse its fiscal course.
In response, Ester plans to engage faculty and staff to address these financial challenges collectively.
On Nov. 17, at 9 a.m., the president will host a “Fireside Chat” session in Engbretson Hall. Ester’s email indicates that this will be a recorded webinar available at a later date for those unable to attend.
Employees are encouraged to submit questions in advance to [email protected].