Glotzbach devises financial outline for Skidmore
Issue date: 2/5/10 Section: Letters
Dear Editors,
The beginning of our new semester represents an appropriate moment to update the Skidmore community regarding our financial situation and address an issue that I know has been very much on all our minds.
As you will recall, last May I announced that we needed to achieve an additional $3.25 million reduction in continuing expenses, and in September I informed the community that there appeared to be no way to realize this budgetary objective without eliminating from 30 to 70 positions (approximately 5 percent of the College's overall workforce). At the same time, I indicated our determination to explore all possible alternatives for achieving the necessary savings through reductions to the operating budget that did not require the further elimination of positions.
I am very pleased to report that we now are seeing signs of improvement in the College's financial condition relative to our earlier projections. This positive result stems from a number of factors:
* While our endowment still has not returned to its level of December 2007 (nearly $300 million), improvements in the external economic climate have enabled a significant recovery in the College's investment assets - from a low of approximately $220 million in February 2009 to approximately $270 million as of December 31. (As always, we have benefited from the superb management of our portfolio by the College's Investment Committee.)
* We are seeing hopeful signs of increased financial support by alumni, parents and friends - particularly in the Annual Fund.
* The campus community as a whole has done admirable work in reducing and controlling expenses.
* We now are planning a smaller increase in the financial aid budget (tuition discounting) in FY '11 than we previously had modeled. (Financial aid remains the College's second largest expenditure category after compensation and benefits.)
* Student retention has exceeded predictions, though this situation remains volatile.
The beginning of our new semester represents an appropriate moment to update the Skidmore community regarding our financial situation and address an issue that I know has been very much on all our minds.
As you will recall, last May I announced that we needed to achieve an additional $3.25 million reduction in continuing expenses, and in September I informed the community that there appeared to be no way to realize this budgetary objective without eliminating from 30 to 70 positions (approximately 5 percent of the College's overall workforce). At the same time, I indicated our determination to explore all possible alternatives for achieving the necessary savings through reductions to the operating budget that did not require the further elimination of positions.
I am very pleased to report that we now are seeing signs of improvement in the College's financial condition relative to our earlier projections. This positive result stems from a number of factors:
* While our endowment still has not returned to its level of December 2007 (nearly $300 million), improvements in the external economic climate have enabled a significant recovery in the College's investment assets - from a low of approximately $220 million in February 2009 to approximately $270 million as of December 31. (As always, we have benefited from the superb management of our portfolio by the College's Investment Committee.)
* We are seeing hopeful signs of increased financial support by alumni, parents and friends - particularly in the Annual Fund.
* The campus community as a whole has done admirable work in reducing and controlling expenses.
* We now are planning a smaller increase in the financial aid budget (tuition discounting) in FY '11 than we previously had modeled. (Financial aid remains the College's second largest expenditure category after compensation and benefits.)
* Student retention has exceeded predictions, though this situation remains volatile.
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