By Stephanie Smith
Financial woes plague The Louisville Cardinal
Misappropriations of Cardinal funding over the past five years has resulted in an entanglement with the Internal Revenue Service (IRS). With a debt of $63,000 looming over the staff, immediate actions to formulate a repayment plan must be completed by September 15th to ensure the continuance of the independent student-run newspaper.
Unbeknownst to student workers, money intended for the payment of back taxes was being used to cover costs for other vital expenditures such as printing debts, payroll, and equipment. Had the amount of back-taxes been paid in full, publication would have ceased.
The current business manager in charge of finances continued to place the money where it was needed, assuming forthcoming newspaper advertising money would be sufficient to repay any accured debt.
Unfortunately, the tragedy of September 11th shook the economy and consequently lowered the amount of money businesses were able to set aside for advertisements. The Louisville Cardinal experienced a dire annual decline in available funds along with numerous other university newspapers. The annual income for the 2001-2002 fiscal year was $116,000, compared to the $150,000 raised in the 2000-2001 school year. With increasingly high financial demands, the newspaper was unable to pay necessary costs and keep control of the expanding debt.
The staff, comprised solely of students, was given a vague description about the operation of mishandled money and its ensuing debt on August 24, 2002.
Fearing that the paper may have to discontinue publication, the staff decided not to cash pre-paid advertisements. Without cashing the checks and without the arrival of the check from the Presidents’ office (scheduled to arrive in July), the staff realized that the small amount of money remaining in the account must be immediately used for printing costs, thus eliminating payroll and petty cash needed for photos and other office supplies.
After a meeting with the business manager, two advisory board members and the IRS, the newspaper staff arranged a meeting with the business manager for September 4th. During the meeting, staff members were informed of why and how the debt accumulated.
That Friday, September 6th, the staff attended the monthly advisory board meeting. After everyone was updated on the dilemma, proposals were made to ramify the situation, including potential payment plans and fundraising possibilities.
The Louisville Cardinal will maintain its weekly publication, granted no more tax payments are missed and an adequate plan for reimbursement is provided to the IRS. The staff is continuing to work without pay, thankful that they still have the opportunity to put forth a university newspaper.
