Glotzbach updates College on budget

In open meetings Thursday, Feb. 12, President Philip A. Glotzbach updated the community on the College's progress in balancing the fiscal 2009 and 2010 budget, and the challenges it will face in fiscal 2011 and beyond.  He provided an overview of the budget process and emphasized that the College's Strategic Plan remains the framework within which the budget is being developed.

As of Dec. 31, the College's endowment stood at approximately $227 million, down from its peak of nearly $300 million last year, Glotzbach said. The preliminary estimated return on Skidmore's endowment for the calendar year has declined 22 percent, but that significantly outperformed the S&P 500 index, which declined 37 percent, and the MSCI world index, which declined 41 percent."However, that's a small comfort when you're looking at a decline of this magnitude," Glotzbach noted.  

These figures were in line with the College's earlier projections, but the first seven weeks of 2009 have seen significant additional investment losses across all market sectors, and so it's likely the College has been further impacted, he said. These recent declines were not anticipated. 

Glotzbach had better news to report from Admissions. Although applications were lower than last year's peak, they still came in at relatively robust 6,400 or about 10 applications for every slot – and the median SAT score, at 1,270, is ten points higher than last year.

Student enrollment appears to be as projected for the second semester and similar to recent patterns and requests for financial aid are up only very slightly. Giving to the annual fund is trailing last year by about seven percent, "but the Office of Advancement is working hard to bring it on target," Glotzbach said.

A strategic hiring freeze remains in place with the necessity of every open position being closely examined.  Overtime and the use of temporary personnel also are being restricted and further reductions will be necessary, despite the important services to the community these positions provide, Glotzbach said. "Because teaching is at the core of this institution, we're going ahead with 12 replacement faculty hires." 

"Increasing the compensation for faculty and staff has been a priority, and so we're trying to hold onto a modest general salary adjustment," he said. "I don't know if in the end we'll be able to do it, but we're trying very hard for our employees." Every percent increase in general salary program impacts the College's budget by approximately $600,000.

Construction of the Zankel Music Center remains on budget and on schedule, and $6 million in endowment to support the building's operating expenditures has been raised toward a target of $12 million.  The Department of Music will move into the new building during next year's January break.

Glotzbach added that the College still hopes to proceed with a major state-assisted renovation of Saisselin Art Building and the renovation of one residence hall this summer. The planning for the replacement of Scribner Village – greatly aided by the contribution of $12 million by the family of trustee Donald Sussman – also is going forward, he said.

For a number of reasons, the 2011 fiscal year will be particularly challenging, Glotzbach said. No over-enrollment funds are projected in that year, and the full impact of the endowment decline will be felt because the weighted average take out will be fully implemented. Also, the College will need to increase its budget for financial aid while at the same minimizing increases in fees. Noting that "expenditures of every type will have to be carefully reviewed for reductions," Glotzbach asked all members of the community to look for opportunities for savings.

The trustees had their annual budget workshop in New York at the end of January, and there will be further discussion of the budget at next week's trustee meeting on the campus. They'll act on budget in May. In the meantime, the Institutional Policy and Planning Committee (IPPC) and other appropriate governance bodies continue to work on the budget both for next year and future years.

More than 100 members of the Skidmore community have suggested ideas for cost-saving – many in the area of sustainability – Glotzbach said. If you have an idea to submit, please use this form.