DES MOINES, Iowa (AP) — The University of Iowa lost nearly $1.2 million from its operation of a business campus in Des Moines, according to university budget information. University officials said the decision to close the former AIB College of Business is due to reductions in state support, The Des Moines Register reported. Since the 2016 fiscal year, the Iowa Legislature has cut UI’s budget by $16 million.

The university announced last week the decision to sell the campus’ seven buildings and permanently furlough 33 full-time staffers whose positions aren’t directly tied to student instruction. Some employees may be reassigned to other positions at the university, officials said.

The university’s cuts will save the school nearly $3.6 million, officials estimated. Students who attend classes at the campus will either move to a downtown center or take their courses online, officials said.

The university took possession of the nonprofit institution in 2016. The merger was described as a gift to the university. The terms of AIB’s gift agreement say the property could be sold if the school’s officials determined that operating the campus was “no longer feasible for economic or other reasons.”