Each division will be asked to reduce their non-compensation FY24 budgets by 15%. (This is a division-wide target and not a departmental one.)
The College is well-resourced and well-positioned to navigate this time of high inflation and price instability, but it is not immune to the effects of these economic forces. Notably, the inflationary environment increases the cost of providing the same programming/services as last year (especially in certain parts of our operations, such as utilities and Dining Services), and it negatively impacts our expected investment returns (our most significant revenue source). We now know that inflation has been more sustained and acute than had been earlier anticipated, and therefore some of the FY23 divisional/department non-salary budgets were not sufficiently increased. In addition, partially as a result of the higher interest rate environment, there are increased concerns about a potential recession in the current calendar year, which may put further pressure on investment returns, on our fundraising efforts, and on family incomes (resulting in higher financial aid expenses).
It is likely that College revenues will grow more slowly than inflationary price increases over the next several years, and FY24 revenue growth will likely be more modest than anticipated, even compared to our projections a few months ago.
The administration’s top priorities will continue to be supporting our students, especially maintaining our commitment to access and success for students from all backgrounds; maintaining competitive salaries and benefits for current faculty and staff; and sustaining the College’s core academic mission.
Our goal is to spend a sustainable amount on an ongoing basis. The endowment is there to be used today but preserved forever.
Our spending today is “right-sized” for our endowment and is on the high end of the 3.5% to 5.0% spending range approved by the Board of Trustees. Spending over 5.0% is not sustainable or prudent on a forward-looking basis, particularly in the higher inflation environment, where simply “keeping up” with inflation is hard.
These reductions request apply to every division of the College, e.g., Student Affairs, Office of the Provost, Admission, etc. It is hoped that this year’s budget process will be collaborative across divisions and that we can identify redundancies and possible expense transfers from one division to another, where appropriate. While final budget submissions are due on March 22, each division should develop its own deadlines to allow for sufficient divisional review/evaluation and re-submission, if needed.
No. Retaining current faculty and staff is one of the administration’s priorities.
No, there is no plan to reduce compensation.
Yes. The administration is taking various measures (e.g., non-salary budget reductions and a stricter review process for vacant staff positions) to be able to provide salary increases. The size of the increase will depend on available resources based on projected revenue and our collective success in reducing non-salary expenses.
No new staff FTE requests will be funded during this budget cycle, and stricter reviews will be made by senior staff and the Personnel Change Request Committee (PCRC) of all staff position change requests, including the consideration of position modifications and the replacement of vacant positions. All requests should be reviewed with the divisional senior staff member and your HR business partner. Please refer to the Personnel Changes Review Process webpage for additional guidance.
Please see the previous question.
The Board of Trustees is responsible for reviewing and approving the administration’s budget proposal.
The budget will be presented to the Board of Trustees at their May 25-27 meeting.
Each division will experience the impact of the budget cuts in different ways. Some may decide to cut down on travel, some may decrease work with consultants, and some may find different vendors with which to work.
As a part of the budgeting process, the College will be looking at all programs and activities, including speakers and celebrations.