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Budget cuts on the horizon Plans to cut expenses college wide and to reduce faculty/staff benefits were announced at Tuesday’s budget summit to counteract over $1 million shortfall in undergraduate tuition and the college’s $45 million debt
many of our traditional students.” Student Affairs has begun using MAP-Works©, a new software that aids in minimizing students who The college is facing drop due to situations that could All Other a budget crisis, and the be addressed by staff. “We need administration is proposing data of who and why we’re losing an additional $450,000 cut to students,” Gatti said. “We will gain Housekeeping college expense budgets and more comprehensive sense of issues 14% Prof. Fees/ $360,000 in cuts to employee students go through.” Contract Svcs. retirement. “Enrollment is the key,” Mead said. 2% “This isn’t the address a As vice president of enrollment, 3% new president wants to give in Equipment Thomas Stein is vital to turning the Purchases 2% the first 100 days,” President college around. Kathy Krendl said. “My job has always felt stressful,” Food Service 4% The administration is Stein said. “It goes with the position. proposing to the Board You have to have pressure to meet a 3 percent reduction in enrollment. I thrive on it.” 4% Utilities 63% retirement contributions and Stein said that he plans on having a 3.5 percent reduction in the largest growth of enrollment in 3% Maint. and discretionary expenses college the continuing studies program. Repairs wide to go in affect Dec. 1, “The increase in enrollment had a 5% 2009. negative effect on the college,” Mead Since salary and benefits said. Even though enrollment went up Salaries and from 2,285 full-time undergraduate are the college’s largest Benefits Depreciation expense category, the students in ‘08-‘09 to 2,326 in ‘09administration has considered ‘10, the number of “high aid” layoffs, mandatory short term students increased. GRAPHIC BY LINDSEY HOBBS unpaid dismissals, changes in According to Mead, the INFORMATION PROVIDED BY THE BUSINESS OFFICE TUITION DRIVEN: Tuition comprised 59 percent of ‘09’s budget. health premiums and benefits, college puts together over changes in retirement plans and 1,500 freshman financial aid decreases in wages. packages each year knowing most will not choose “I can’t wait to spend the next four years here. I am “There is a $1.1 million shortfall that we need to Otterbein. afraid because it’s a private college. We rely on other make up,” Dave Mead, vice president of Business In 2008, the college earned $54.3 million and sources for funding. I run cross country, and we have Affairs, said. gave $21.8 million (approximately 40 percent of really nice buses. I really like them, but I know that According to Mead, the sour economy and high earned) away as awards for students. In 2009, could be cut. I’m over at the equine center a lot, and unemployment rate have caused credit freezes for however, the college gave nearly 43 percent of its it’s so nice. But now I feel bad knowing that people students and families, loss in investments for the earned tuition in awards. This gave Otterbein an are suffering, and I’m in this nice building.” college and loss of willing and able donors for the additional $900,000 deficit. ―Tiffany Fritz annual fund. The college endowment has sunk from In order to increase tuition revenue, the college freshman pre-vet $100 million to $71 million. “No one is happy…I’m contracted a two-year agreement with financial not happy,” Mead said. firm Hardwick/Day to optimize enrollment. “I “They (staff) might reconsider if their incentives are being taken away. The perk of a small school is that According to Mead, the college has already had think as we put new programs in, students will pay professors can help beyond the class. This can affect to scale back on purchasing new equipment, on for that,” Stein said. the appeal for the professors to choose to be here at marketing and on library acquisitions. There have According to Mead, the number of Ohio Otterbein versus other schools.” been no wage increases and employee positions high school graduates is projected to drop by 10 ―Casey Buckler have been left vacant. percent. “We are working hard to press outside of freshman psychology “We are not alone in this process,” Krendl Ohio to bring more students,” said Stein. said. According to Mead, other peer colleges like The new science and equine facilities (which “Obviously no one’s happy about it, but I think Baldwin-Wallace College and Capital University are added $26 million in debt), the development of people are committed to not having it effect students. reducing their retirement by one-fourth or having 4-5 new graduate programs and making at least We’re in a period where we’re trying to do more with pay cuts across the board as high as 7-10 percent. 75 percent of all graduate and continuing studies less. We’re trying to innovate to attract new students. In a few years, the hope is to be up (enrollment) 50, One problem addressed was Otterbein’s courses available online by summer of 2010 are even 150 students.” retention rate. “The retention committee has been hoping to grow enrollment to 4,800. ―Paul Eisenstein, more reactive than proactive,” Robert Gatti, vice “I assure you. We will work our way through Dean of the School of Arts and Sciences president of Student Affairs, said. “We lose way too this,” Krendl said. t&c BY FALLON FORBUSH News Editor
2009 Expenses
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thursday, oct. 8, 2009 | vol. 91, issue 4