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Oh my USC www.uscannenbergmedia.com/2025/05/02/a...

May 4, 2025, 6:00 PM

Record data

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          "alt": "Screenshot of the top of the article that reads: ANALYSIS: USC deliberately escalated ‘structural deficit’\nA doubling debt and egregious management growth place blame on the university.",
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          "alt": "Screenshot of the article that reads: \"While USC remains financially stable, we are operating with a structural deficit, meaning our normal operating expenses exceed our typical revenues,” the Office of the Provost wrote in an email.\n\nThe office presented an exhaustive list of costs that had led to this “structural deficit,” such as “inflation,” “financial aid growth” and “the rising cost of college athletics.” Apart from “investment in compensation” and “investment in critical infrastructure,” USC indicated that the costs were strictly out of the university’s control. Costs were “external,” not active decisions made by the university.\n\nHowever, it is clear months later that USC has been actively deepening its operating deficit despite being aware of the structural issues that would be caused. Namely, USC continues to grow its debt beyond $3.2 billion and has been expanding its managerial staff at extraordinary rates.",
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          "alt": "Screenshot of the article that reads: In a statement to student media, Erik Brink, the university’s chief financial officer, said “USC has been making changes since 2017” to combat the current deficit.\n\nIn 2017, the university’s operations were turning a profit.\n\nThe next year, USC turned its first operating loss due to more than $200 million in legal settlements tied to George Tyndall who had abused hundreds of students as a campus doctor. However, excluding the costs of legal settlements, 2019 was the university’s first — and most severe — year of loss in recent history.\n\nUSC ran a deficit of almost $400 million, thanks in no small part to losses in contributions, sales, and auxiliary enterprises — which include USC Bookstores, Hospitality and Housing. Around that time, USC was dealing with the fallout of the Tyndall and Varsity Blues scandals.",
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