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Dolla dolla bill: Bailey demystifies budget adjustments
Friday February 26 2010
It is an undisputed fact that the American economy has experienced a rough few years, which has resulted in price increases for many services. Unfortunately, this means that tuition prices have continued to rise, increasing Elizabethtown College’s fees to $41,750 for the 2010-11 school year. In an e-mail sent out this week, President Theodore Long stated that this is a 4.5 percent increase, one of the lowest in the past 15 years. However, when looking at any increase, it is important to be aware of what the increase supports — in this case, the College budget.
At this week’s Student Senate meeting, the discussion revolved around budget changes for next year. During the meeting, Vice President of Finance Rick Bailey presented “Where Do Tuition Dollars Go?,” during which he explained budget increases and tuition.
“We look at number of things when thinking about adjusting the comprehensive fee, such as our own projections overall for the College as a whole going forward, all components of expenses, and we conduct comparisons with other institutions, see where their comprehensive fees are and where they are headed,” Bailey said. “We also look at the changes in the CPI (consumer price index), specifically the education index, published by the Bureau of Labor Statistics. All these components are considered and discussed at the faculty assembly, senior staff and the board of trustees.”
It is necessary to determine where funding will be distributed best and what funds can be used to support the necessary changes. Safety expenses are always top priority, along with supporting the campus’s mission and the maintenance of facilities. When it comes to the distribution of funds across campus, 61 percent goes toward compensation and benefits. Thirty-four percent goes toward financial aid. Costs of goods for both the book store and dining services are 5 percent. Utilities and other expenses related to facilities takes up 12 to 14 percent of the budget. Tuition payments only cover 80 percent of the costs of running the campus.
Sophomore Jill Patrick stated that although she understood tuition increases to support the budget, it seems like a rather substantial increase, especially for families supporting multiple college students. She also said that she expects her sibling’s tuition will increase, but she doubts it will be as substantial an increase.
Although students agree that tuition should fund projects that better the campus, it is apparent that rising tuition rates are taking a toll on all College members, especially those responsible for financing their own schooling. A key question is what we can do to reduce costs. The answer is simple: discover ways to conserve resources, including electric and gas costs, which account for about $2 million per year.
Another concern regarding tuition and budget increases centers on scholarship distribution. Although it has been emphasized that this year’s tuition increases are lower than past years’, sophomore Betsy Michaels views the increase in a different way.
She stated that although this year’s increase is only 4.5 percent, she looks at increases as a total from when she began school at Etown. This year’s increase marks a total of an 8 percent increase in the two years that she has been here. Also, scholarships do not continue to adjust with tuition after students have passed their first year, another fact which makes this increase harder for most students.
According to Vice President for Enrollment Paul Cramer, financial aid is not a part of the budget that has “left-over” money. Rather, the resources provided are distributed as best they can to those in need. The percentage allocated to financial aid this year is higher than in years past. Of the current tuition prices, 34 percent is being set aside for the distribution of financial aid in order to help current students, in contrast to 33 percent last year.
“Regarding returning students, Elizabethtown re-evaluates all students who apply for need-based aid on an annual basis,” Cramer said. “For those students who demonstrate significant increases in need, the College is committed to adjusting financial aid packages to allow those students the opportunity to continue and complete their studies at Elizabethtown.”
Etown By the Numbers
Total cost for 2010-2011: $41,750
Tuition cost: $33,250
Basic room and board: $8,500
Increase in tuition: 4.5%
President Long’s salary: $254,555
President’s expense account: $94,930
Provost’s salary: $140,000
Rick Bailey’s salary: $130,875
Dean Calenda’s salary: $93,510
Student activities budget: $3.5 mill.
Information compiled from 2007 tax exemption form.
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