This is not a problem which only WPI faces and President Parrish hopes that by taking a few steps now, the college can achieve financial stability. In a memo to the cabinet, Parrish explains: "It is no secret that these are challenging times for higher education. This is especially true where finances are concerned. Our critics are especially concerned that tuition has increased faster than the CPI and believe that the underlying cause is inept management and refusal to recognize reality as reflected in the new dynamics affecting our society.
"To a large extent, the criticisms are valid, although the public, in general, does not recognize the differences between the academic and industrial sectors. For example, universities are more labor intensive and consequently affected more by rising costs of health care, changes in fringe benefits, and the like. In addition, increases in expenses to support libraries and information technology have far exceeded the CPI growth for many years."
Among other measures, Parrish is calling for budget surpluses, which will permit needed investments in educational programs. In order to do this, expenses will need to be cut "regardless of any expected increases in revenues." He is also calling for a very conservative budgeting process for example: in the past projections were made based on a freshman class size of 650, Parrish is asking for budgets to be figured on enrollment of 600 freshmen. Then any errors will have a positive impact on the bottom line.
Obviously cutting money from the budget is a touchy subject, programs will be evaluated based on their record of achievement and reputation, potential for excellence, leadership, competitiveness, critical mass of faculty and students and the demand by students and employers. Resources should be provided for programs that are of high quality "either we do them right, or we don't do them at all."
In order to make the budgeting process interactive with various campus constituencies, the Budget Development Advisory Committee (BDAC) has been formed. It is charged with working with the Cabinet (which has the ultimate responsibility for recommending an annual budget to the Board of Trustees) in developing a budget which is balanced or has a surplus and also keeps within the established institutional objectives. A worst case scenario and an optimistic scenario will be developed for the year and BDAC is also charged with recommending to the Cabinet policies "that will enable the university to reach financial stability at the earliest opportunity."
Membership includes FAP Committee (Finance and Administrative Policy) members Professor Kinicki (Computer Science Department Head), Professor Thompson (Acting Department Head Chemical Engineering), Professor Noonan (Management Dept.), Vice President of Administration Steve Hebert, Academic Department Head Professor Woods (Social Science), Executive Staff member Blanch Pringle (Director, Minority Affairs), Administrative Secretary Cathy Emmerton, Union Representative Larry Riley, Shelly Cote (Class of '97) and Graduate Student Kevin Gahagan. Resource members of the committee are Carol Garofoli, Assistant to the Provost and Budget Director Judi Trainor.
The committee is to attempt to keep tuition and fees to a minimum, while continuing to broaden academic offerings as well as improve the quality of life and campus safety. Currently, they are gathering information and learning about the budgeting process, as well as looking ahead to the Trustees' meeting in February, when they vote on next year's budget, including the tuition rates.
BDAC has been formed to help the college in the future, not because of any problems with this year's financial situation, Judi Trainor stated that she "believes [we] won't end this year with a deficit." Things are starting to look good for next year also, the Admissions Office recently announced that they had received 233 applications for early admission and they expect 250 total, compared with 170 last year.
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