BULLETIN | SPRING 2016 9
ON CHRISTIAN & ELM
with
SAMUEL P. BARTLETT ’91
c hoate ros emary ha l l board o f trustees f i nan c e c ommittee c ha ir In January, the Choate Rosemary Hall Board of Trustees approved the lowest tuition increase in the School’s recent history. This minimum increase, paired with the elimination of the student health fee for the 2016-2017 academic year, is indicative of a Board committed to a thoughtful and intentional approach to tuition. As Michael Carr, Chairman of the Board of Trustees, and Alex Curtis, Headmaster, noted in a letter to parents, “We are very conscious of the financial conditions around us and we feel strongly that we should do our part to hold down the cost of education.” To learn more about Choate’s efforts to manage tuition costs and the philosophy behind them, The Bulletin spent time with Sam Bartlett ’91, Board of Trustees Finance Committee Chair.
BULLETIN: How does the Board of Trustees set tuition
each year? MR. BARTLETT: The Board has made some modifi-
cations to our process recently, and we are focused on a “bottoms-up” approach that reflects a clear strategic objective. We aim to keep annual tuition increases in a range that is sustainable over a long period of time and that provides us opportunity to attract top students. As a practical matter, first we determine the cost to deliver the highest quality experience for students and to meet the School’s strategic goals each year. Once costs have been determined, we evaluate current economic conditions, and then look at revenue sources. We begin with the nontuition sources: endowment draw and Annual Fund projections principally. Last, we calculate tuition, which is, in essence, the revenue we need to balance the finances of the School. Finally, proposed tuition increases are evaluated against our own history and benchmarked against our peers. While we aim to be competitive with our increase, this process has actually allowed us to slow our rate of increase against these measures over the past three years. B: In January, the Board of Trustees approved a historically low tuition increase of 2.44 percent for boarding and 2.50 percent for day students. Why is this significant?
MR. BARTLETT: On the one hand, looking back at history isn’t all that instructive – economic conditions (for example, inflation) and, of course, the School’s priorities change over time. At any given time in our history, the School may have been investing in new programs or facilities that may have driven tuition costs. On the other hand, the historical increases represent a pretty good long-term reference point, and it is notable and purposeful that this increase is at a lower rate than we’ve seen in four decades. It’s hard to say that we will be able to keep increases under 3 percent every year. However, we do plan to keep increases in a band that is lower than we’ve done historically. B: What is the Board of Trustees’ long-term strategy for tuition? MR. BARTLETT: Board conversations on tuition focus not on one, or two years out but on where the School may be five, 10, or 15 years from now. The difference of 1 percent increase ($500) may not seem significant in any one year, but if we compound that over 10 years (say, for example, 4 percent vs. 3 percent growth) that’s a $7,500 difference. The compounding effect of any increase is potentially significant to future generations, so we are determined to hold increases to a minimum.
We also have a long-term focus on making Choate accessible to as many qualified students as possible. In addition to keeping tuition lower, we think it is strategically important to increase financial aid so students of all socio-economic backgrounds can attend Choate. B: How does this intentional approach to tuition move the School closer to its 2013 Strategic Plan goal “to enroll the most talented and accomplished individuals?” MR. BARTLETT: In order to continue to attract the best students we need to offer terrific academic programming and extracurriculars, and remain financially accessible. We think the approach we’re taking to tuition and financial aid fits into the broader picture by encouraging discipline on making investments consistent with our top strategic priorities and maintaining the explicit goal of keeping cost to families lower. This approach will ensure that the School can stay relevant and innovative without sacrificing the accessibility of the Choate experience.
by alison j. cady Alison J. Cady is Director of Strategic Planning & Communications.