Purdue University Calumet announced last month that their off-site Academic Learning Center (ALC) will no longer be offering classes from the fall 2013 semester.
As a result, Indiana University (IU) Northwest, which leases classroom space at the ALC, will also stop offering classes, starting fall 2013 semester. The classes will now be offered on the Gary campus.
Purdue University Calumet spokesman, Wes Lukoshus, said that the university's enrolment decreased by 11 percent last fall, which caused their revenues to decline. Therefore, a $4 million deficit is projected for 2013.
As a result, they are planning to lay off certain faculty members and reduce certain positions and facilities.
Purdue Calumet Chancellor Thomas L. Keon said that since fall of 2008, enrolment at the ALC has declined from 1,406 students to 476 last fall.
By closing the center, the university hopes to save around $280,000 annually.
The officials are also thinking of shutting down Charlotte R. Riley Child Center for students and staff to help clear the deficit.
"We're trying to be as efficient as possible and looking at ways to save money," Lukoshus said. "We have fewer full-time students, and they go a long way in generating the budget."
The university officials will also soon determine the future use of the $9 million, 48,000 square feet two-story structure that opened in 2005.
In order to overcome the budget shortfall, the university plans to introduce an enrolment management plan to attract more full-time, qualified students; develop more partnerships and generate more revenue sources.