Bloomberg (http://bloom.bg/KHpjTD) reports that even though Madoff is currently incarcerated and no longer on the board, the university is still struggling. The school failed to produce its financial report on time and warned that the chronic budget deficits may get worse, sparking Moody’s Investors Service to cut Yeshiva’s rating four levels beneath investment grade.
The university has had a difficult time controlling operating costs. Management has cut spending by freezing faculty salaries. The school’s annual deficits total hundreds of millions from 2010 to 2012 –$107.5 million in 2010, $46.7 million in 2011 and $105.9 million in 2012.
The university released a draft in lieu of an on-time financial report for year ending June 2013, estimating a deficit of $146 million that may end up being larger.
President Richard Joel froze senior administrative salaries and hiring last year. Non-essential programs will be cut and there are plans to sell real estate, including properties in Washington Heights on the main campus.
Joel is taking a $100,000 pay cut himself. His compensation was $1.24 million in 2011, which made him the 24th highest-paid private-university president in the U.S.
Yeshiva University was founded more than 100 years ago and is integral to the Modern Orthodox community in the U.S. It contains top-rated medical and law schools, in addition to a rabbinical school.