USC financial disclosures show the university spent $158 million more than what the university earned

The University of Southern California has reportedly spent $158 million more than what the university earned in its 2023-2024 fiscal year, amidst pre-existing financial troubles at the school. 

The university placed some of the rising costs on inflation and said it plans to set initiatives to drive down the deficit, according to USC Annenberg Media. 

The University’s Office of the Provost stated to Annenberg Media in a statement that the budget deficit over the past six years has ranged from anywhere between $586 million as a result of complications the University grappled with during the COVID-19 pandemic, to $36 million. 

The university directly cited how inflation, costs of insurance, competition from other higher education institutions, declines in graduate school enrollment, athletic expenses, and growth of financial aid are all factors that could helps explain the deficit for the current year. 

Administrators stated that they plan to invest in its students and employees at the university while planning ahead for potential future financial struggles that could further inhibit the its spending power. 

[RELATED: Columbia leadership disproportionately gave to Democrats in 2020, 2024: REPORT]

In USC’s statement, the institution made mention of how “Eliminating this deficit is attainable over the next few years and is necessary to ensure USC’s long-term financial resiliency. By acting now and reviewing our financial structures, we can fulfill our obligations to current and future Trojans- so long as we all focus on our end goal.” 

[RELATED: UT System to make undergrad tuition free for Texas residents with family incomes of less than $100k]

The University added in their statement to Annenberg Media that they are “[C]onfident that USC will continue to excel as we take the actions needed to build an even brighter and more sustainable future for our university.”