It seems as if this economic downturn is affecting everyone. Many of you are aware of the problems faced by those looking to retire shortly, take out loans for a car, and pay for school, but you should also be aware that Skidmore as an institution (and many other colleges) is facing similar challenges.
This afternoon, at 1pm, President Glotzbach addressed a packed Davis Auditorium on the economy and Skidmore’s position in the precarious markets. The audience was comprised of the intellectual elderly, a few us Skidmore Unofficial reps, and about everyone in Starbuck who’s ever told you that you can’t drop physics, or that you hipsters can’t wear your raybans in your ID photos.
Glotzbach offered us some optimism–chicken finger Friday shall continue to shine as a bright light at the end of the week. Unfortunately, he emphasized how we will all have to reevaluate our budget for the upcoming year in light of more stringent budget regulation. He did not, however, provide us with a tentavive plan simply because there isn’t one yet–the daily fluctiations of the market are too unstable.
“Nobody’s panicking, but this is one that we’re just going to have to ride out.”
The endowment will be taking the hit. After reaching a high of approximately $300 mil, the endowment is down by roughly 10-20% in the past month (that’s like, $30-60 mil for you studio art majors). “Nobody’s panicking, but this is one that we’re just going to have to ride out.” The operating budget, with which the school functions, is 80% funded by the tuition and fees that we pay. Only about 12% of the operating budget comes from the endowment. Overall, Glotzbach expects a decrease in the operating budget by about $1.5 mil and a decrease of $0.5 mil from investments. With regards to the annual fund, “we have a target of $6.7 mil from parents and alumni…we may do less well than expected.”
Skidmore keeps a cushion of $900,000 available for events that are unforeseen in the upcoming year. Glotzbach expects a net shortfall of $2 mil in this year’s operating budget, forcing the college to have to tap into most, if not all of that $900,000. “Skidmore is in a great position to deal with the short term economic issues we’re facing…I don’t see any need to take any draconian measures in the immediate future.” However, skidmore will be looking for places to save money. “We do not have the capacity to waste money!”
As of late there is no plan to decrease financial aid provided to students. Currently the annual financial aid budget is $27 mil, which provides help to approximately 42% students on campus, a statistic that “has remained pretty flat” since Glotzbach became president. Glotzbach stressed that financial aid is essential to attracting the competitive base that Skidmore has had in the past few, more selective years of college admissions. “Financial aid is going to be crucial to the future of Skidmore College.”
“We do not have the capacity to waste money!”
But when maintaining such services, some things will have to be cut. Certain departments could face budget decreases in any way they can possibly afford. Alternative energy initiatives will not be a top priority for the college for sometime. Currently, the Northwoods, Murray-Aikins Dining Hall, and Zankel all are supplemented by geothermal heating. Plans to spread such capabilities to Saisselin, JKB, and Filene will not be able to proceed. Additionally, do not expect the rustic Scribner Village to be demolished anytime soon.
All things considered, Skidmore is doing fine and will stick around for awhile as an institution. Although the economy is in the shitter, the school is not facing as much trouble as it did in the ’70s when stagflation drove the school to the brink of bankruptcy and caused all faculty members to witness a significant decrease in their salaries. As for the long term survival of the school in this crisis, it would not be unreasonable to suspect increases in tuition.
Upcoming Events:
Glotzbach will be presenting another round of the same lecture tomorrow to whoever’s diligent enough to attend @ 11am in Gannett. Also, there will be an economic forum hosted by Skidmore, comprised of bankers, economists and a Massachusetts investment officer (CEO and chairman of the board of the Adirondack Trust Company), on Oct. 28 @ 5:30pm in JKB (still without geothermal heating).
