2005 budget could spell cuts

By Chris O'Connell

Representatives from the University Budget Council hosted a forum on the financial operating plan for the 2005 fiscal year last Wednesday warning of possible operational cost reductions, which could include consolidation of operations and the elimination of some activities and positions within the university.

However, Dennis Roberts, director of the budget office, said specific budget reductions for next year are still "to be determined."

"Management is still in the process of identifying appropriate cost reduction targets and is actively soliciting input from faculty and staff," Roberts said. But Roberts said that university management has determined that there will be cuts in university spending.

Tuition is set to increase to $27,135 for the 2004-2005 academic school year, up from this year's cost of $25,365, according to Bob Warren, chair of the UBC and vice president of administration and finance.

Warren emphasized the university's concern to keep tuition from reaching an excessive level, while highlighting the university's proposed solutions to ensuring a balanced budget. He said UBC is concerned with setting tuition at an appropriate level that will encourage high academic standards without compromising enrollment because of cost.

In order to increase revenue, Charles Nolan, the vice provost for enrollment management, said Santa Clara hopes to reach an undergraduate enrollment target of 4,525 students next year. However according to Santa Clara's Web page, last updated in September of 2003, there are currently 4, 551 students enrolled at the university.

"We've received 19 percent more applicants this year," Nolan said. He said the increase in applicants allows for higher selection standards from the pool of college hopefuls.

"We hope to reach our enrollment target with a larger and more diverse applicant pool," Roberts added, which he said would allow the university to be more selective in the applicants the school accepts.

Warren also stressed evaluating the income from endowment and gifts to support current university operations, as well as preserving the long term integrity of the university's endowment.

Another segment of university operation undergoing review is the financial aid department, which Roberts said is enlisting the help of Maguire Associates, a consulting firm. However, Nolan said there are no plans to decrease financial aid to students.

Wednesday's presentation stressed that the university is neither isolated from nor immune to forces at work in the world and in the region.

"A lot of financial and political issues that face businesses and governmental entities must also be confronted by the university," Roberts said. Roberts said it is important to remember that the university is part of the community, and therefore changes in the economy affect the school the same way they would a corporation.

Roberts mentioned that the economy is now on the rebound, but there are still fiscal obstacles. Attracting and retaining faculty and staff in a high cost area such as the Silicon Valley is one of the financial challenges, since half of the university's expenses go toward faculty and staff salaries and benefits.

The largest financial challenge facing Santa Clara through this past year is the current freshmen enrollment. According to the Santa Clara Web site there are 897 students in the freshman class, down from 1,121 â€" a change which has resulted in an economic shortfall, according to Warren. Close to 50 percent of Santa Clara's revenue comes from undergraduate tuition and fees.

Roberts said in order to compensate for the deficit, at least in the short term, the university admitted more transfer students, delayed some maintenance projects, raised tuition and lessened staff and faculty salary and benefit increases.

The university received 165 transfer students this year, more than doubling last year's number of 70.

û Contact Chris O'Connell at (408) 554-4546 or coconnell@scu.edu.