The Board of Trustees are coming to St. Lawrence on October 25 for their annual fall meeting. One of the issues to be discussed is the university’s current financial deficit, and the steps being taken to combat it.
In recent years, St. Lawrence’s expenses have continued to rise faster than its revenue, leading to a budget gap. Vice President for Finance and Administration Steven Hietsch explained that at the end of the last fiscal year on May 30, 2018 the University had only $2.1 million remaining with which to pay for the final item of the budget: the upkeep of university buildings and facilities.
Campus buildings require $12 million to maintain each year, according to the Strategic Budgeting Coordinating Committee, meaning that the deficit for the last year was roughly $10 million. However, Hietsch did add that this is not a problem unique to St. Lawrence, but one currently faced by many colleges and universities.
Understanding that the University cannot sustain a situation where costs rise faster than gains, the University began planning last semester to close this budget gap. President Fox sent out an email on Sept. 19, 2018 outlining some of the measures that will be taken in the next few years as part of this “strategic budgeting.”
A major part of this plan is tuition, which is now slated to increase by 3.5 percent annually. This is worrying to many students, who are unsure if they will be able to afford to return. An anonymous student told The Hill News that they were very concerned about the increase. “If I had known it was going to be this expensive I might not have come,” they said.
Tuition will be discussed at the upcoming Board of Trustees meeting. Hietsch believes that “the University is sensitive to price increases and wants to keep them at a reasonable level.”
Thelomathesian Society President Tinga Ading ’20 understands students’ concerns. He also is worried about tuition, telling The Hill News that the rising tuition would make it difficult for him as well. “It’s an impact not only on students but on families as well,” Adiang said.
Ading’s personal mission for the University is to change policies so that financial packages lock in to the tuition increase, as opposed to the current situation, where financial aid doesn’t necessarily increase. If approved, this would mean that students’ financial aid would be ensured an increase each year at the same rate as the tuition increase. “You’re not going through this alone,” Adiang said. “There are a lot of people facing these same struggles and we want to help you.
Other repercussions of the deficit and strategic budgeting may affect departmental budgets and facilities. As noted before, this last year St. Lawrence only had the money for 15 percent of the campus upkeep costs, which might mean some renovations are put on hold. Certain committees such as the Academic Affairs Committee and the Committee on International and Intercultural Studies are also being asked to analyze their budgets with an eye towards reducing expenditures.
But some of the effects may be beneficial as well: among the actions being taken is a collaboration between the Campus Committee on Sustainability and Carbon Neutrality and St. Lawrence Facilities Operations staff to move towards more environmentally-friendly, cost-saving energy solutions. While the end results of the budgeting is uncertain, Adiang believes that it “shouldn’t affect student life in a dramatic way.”
Hietsch added that this whole process will take into account student opinions, and make sure to hear all student voices. “The strength of our academics and the quality of our students’ experience are the foundation of SLU,” he said. “Therefore, to the extent possible, our planning process is focused on those initiatives which do not affect these factors.”