BY ALEXANDER ROLLE

In print | Published April 23, 2009

On Tuesday evening, April 21, a fireside chat hosted in Kohlberg Coffee Bar introduced a set of proposed budget cuts that President Bloom had prepared for the upcoming meeting of the Board of Managers.

Dean of Students Jim Larimore, Vice President for Finance and Treasurer Suzanne Welsh and Vice President for Human Resources Melanie Young attended the chat, both to explain the list of proposals that was distributed at the meeting and to answer student questions. The proposals had already been given to the faculty and staff at separate meetings.

Welsh began the meeting by briefly explaining the relationship between the budget and the college’s endowment, and how the downturn in the stock market has forced the college to make changes in its spending. Calling the roughly 30 percent drop in the endowment’s value a “significant problem,” Welsh said that the college will “have to readjust [its] budget to fit the smaller size endowment.”

According to the Welsh, the college is foreseeing a budget gap of about $10 to $15 million.

The proposed budget cuts contain no reductions in compensation for college employees, except for a “reduction in student wage hours for campus activities and events.”

In addition, a decision has already been made to change “some of the pay categories of some of the [student] jobs … in order to create a more equitable system,” according to an e-mail sent to the student body by Young on April 21.

Asked by students about possible reductions in employee compensation, Welsh pointed out that no cuts were proposed in this area for the 2009 – 2010 budget, but admitted that nothing had been ruled out for future budgets.

The proposals contain no layoffs, though an open position in the Admissions and Financial Aid office will not be filled, and a vacant tenure line will also remain unfilled.

According to Larimore, “there was a directive that we try to avoid layoffs, to the extent that we possibly could.” Asked about the possibility of future layoffs or compensation reductions, Young reiterated the college’s understanding that compensation and benefits have to be competitive with competing employers, as well as its “commitment to social justice.”

Larimore also said that the committee attempted to find budget items that could be cut or reduced without affecting student life.

He pointed to one of the proposed cuts in Dean’s Office funding, for the “reduction and elimination of refreshments at meetings and events,” which he described as “nice things to have when you have them, but you can give them up.”

Larimore also mentioned the committee’s efforts to reduce spending in vital areas, such as in the Honors program, without compromising the program itself. “There may be ways that we can squeeze a little more efficiency,” he said of such programs.

By far the biggest proposed cut was a “reduction in facilities capital projects” of approximately $5.8 million. In past years, the facilities budget has hovered around $9 million. Along with a separate proposed reduction of $781,850 from the facilities budget, the proposed cuts represent a dramatic change in the college’s spending on facilities. Administrators at the fireside chat emphasized that these cuts are not meant to be permanent, but are just a postponement of renovations and upgrades that have been put off until better economic times.

As part of this cut, the college’s efforts to improve its accessibility in order to comply with federal regulations established by an amendment to the Americans with Disabilities Act will be delayed somewhat.

According to Larimore, the college still hopes to finish its renovations in this area by the date it had originally expected to, but many of the improvements will occur closer to the deadline than they had planned. The changes that the college thinks will be most important to people with disabilities will be made first, according to Young.

The second largest proposed savings comes from a salary freeze for faculty, staff, and students. This freeze will save the college almost $1.2 million over a two percent increase in salary.

The new budget also included a proposal to increase the college’s revenue by increasing enrollment by 16 students, a decision that the board already approved at its February meeting, according to a February release detailing budget decisions.

In addition, the college hopes to increase revenue by making greater use of the campus over the summer and selling some off-campus property that Welsh described as undesirable.

Responding to a student question, Larimore confirmed that neither the basement of Mary Lyons nor the lounges of Dana and Hallowell would be used to house additional students.

Asked about ways in which members of the Swarthmore community can provide input to the college on budget issues, the administrators pointed to the financial planning committee’s website, which includes an online suggestion box, as well as meetings like Tuesday night’s, which is to be followed by similar meetings, according to Young.

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