Board of Trustees approves budget cuts

By Winston Yu

The budget cuts announced earlier this year were approved by the Board of Trustees, along with a budget of $322 million for next year.

Last Friday the board approved several measures to tackle the school's budgetary problems brought about by the global recession.

The measures approved by the board cover a broad range of issues, but mainly focus on spending, the cost of attendance and financial aid.

The key initiatives for next year include a tuition and room and board increase of three percent, an increase in funding for student financial aid, the elimination of salary increases for faculty and staff, a reduction of operating expenses and a new system to review vacant faculty and staff positions for their strategic importance.

Tuition and housing costs will increase by 3 percent, the lowest percentage increase in 25 years.

"Undergraduate tuition next year will be $36,000, a $1,050 dollar increase," said James Briggs, executive assistant to the president. "Room and board costs will rise from $11,070 this year to $11,400, a $330 increase," he added. This will place the combined cost of tuition and living on campus at about $48,000 for next year.

The trustees passed a commitment to reducing expenses by $2 million, which was classified as "a reduction in targeted departmental operating expenses" by the university's press release.

According to Provost Lucia Gilbert, these are not across-the-board cuts.

"We are reducing expenses by different amounts in all units across campus," Gilbert said. "No academic programs are being cut. No classes are being cut," she said.

There have been more inquiries regarding student financial aid, ranging from students wondering whether their current aid will be affected as well as current students submitting financial aid requests.

Santa Clara is responding to these requests with outside help.

University faculty and staff volunteered to cancel their annual dinner in order to take the saved money and provide it for emergency financial aid.

Additionally, an anonymous donor has provided a challenge grant of $100,000 on a $1 for $2 basis, which is essentially a promise to match other donors.

"For every $2 that other people contribute, he will match that with a $1 gift of his own money," Briggs said.

The Jesuit community of the university has also donated $200,000 of their own to create another challenge grant.

If both challenges are met, the school stands to receive another $900,000 in emergency financial aid that may be provided to students whose families are impacted by the recession.

Faculty and staff will also be affected by the board's decision. Salary increases were not provided for in the budget, with the only exceptions being for faculty who are promoted, as well as required increases for specific employees contracted with the university.

In addition, the Board of Trustees will create a "position management system," which, according to Gilbert, will be filled by individuals who submit applications and are selected by the President's staff, including all the vice presidents.

This system will focus on evaluating the "strategic importance" of vacant positions, which runs into a largely gray area.

"Strategic importance would be, for instance, if someone is helping to implement the undergraduate curriculum," said Gilbert.

The school's endowment was hit hard by the steep market declines of the last few months. In 2008, it was estimated to have lost about 24 percent of its value, according to a press release provided by the university.

It is worth about $533 million, a sharp drop from the $700 million plus value that was widely discussed last year. Returns from the endowment will fund about eight percent of the new $322 million budget.

With the completion of Lucas Hall and Harrington Learning Commons, the university has completed its biggest construction projects on its master plan. The tough economic climate has forced a delay in construction of other large-scale projects.

The Locatelli student event center -- named for former President Paul Locatelli, S.J., -- is still on track to be completed by the end of 2009 due to the fact that its funding comes from a private gift specifically set aside for the center.

President Michael Engh, S.J., could not be reached for comment on this issue.

In a press release, Engh said, "We are committed to maintaining financial aid and the quality of our educational program throughout the economic crisis and ensuring that economic hardships do not cause students to withdraw, or prevent new students from coming to Santa Clara."

Contact Winston Yu at (408) 554-4546 or wyu1@scu.edu.