One year ago, Congress defunded public media. Now that we're 100% community funded, please become a sustaining member or increase your existing membership today.
USC orders cuts and hiring freezes in face of federal scrutiny, budget problems
A woman walks past a sign at the University of Southern California (USC) in Los Angeles, California on August 25, 2020.
(
Frederic J. Brown
/
AFP via Getty Images
)
Topline:
USC has ordered immediate cost cutting, including a hiring freeze, fewer new faculty and the elimination of an extended, paid winter break.
Why now: USC says recent federal funding threats, cuts, higher costs and other problems led to the cost cutting. The federal threat is real: in fiscal year 2024, USC received about $1.35 billion in federal funding. But some of the problems are coming from inside the house. USC fundraising has dropped in recent years, while a major sexual assault scandal ended up costing the university more than $1 billion in payouts.
What else is getting cut at USC: No merit pool raises for most employees this fiscal year; an evaluation of capital projects to pause or stop them; and limits on non-essential business travel, conferences and entertainment. Here's the full message.
Why it matters: USC employs tens of thousands of full- and part-time faculty and staff, and is a major academic, research and economic force in Southern California and beyond. Its budget problems might make it more susceptible to federal pressure, as the U.S. Department of Education investigates the school over claims related to antisemitism.
What's next: It’ll be up to a new leader to solve USC’s money problems. The board of trustees is searching for a new president after Carol Folt said she would step down in July.
One year ago, Congress voted to defund public media, eliminating a critical $1.7 million from our budget every year going forward. But they couldn’t silence us, and we’re not going anywhere. LAist is now 100% community funded and that means we’re taking our future into our own hands and turning to you to keep local reporting strong.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Senior Vice President News, Editor in Chief
