Cost of California colleges up

By Jesus Diaz

With a tuition increase this year, budget cuts in operating expenses and a global economic recession, Santa Clara students are wondering what the university is doing to ensure financial stability for students and staff.

According to Associate Vice Provost for Enrollment Management Dr. Richard Toomey, Santa Clara received 8,839àFAFSAs from new and returning undergraduate students for the 2009-10 academic year, an eight percent increase over the 2008-09 amount of 8,199.

Since the 2007-08 academic year, the university witnessed a 22 percent increase in the number of undergraduate FAFSAs received.

This increase stands slightly higher than the California state average of an approximate 20 percent increase, according to the U.S. Department of Education.

During the 2009-10 school year, the cost of tuition and housing rose by three percent,àthe lowest percentage increase in 25 years. Recent rises include seven percent for the 2004-05 school year and six and a half percent in 2005-06.

How is the university meeting more demand with less tuition revenue during an economic recession?

"There will be delays on capital projects and building improvements and no salary increases this year," said Associate Vice President for Finance Harry M. Fong.

Projects like renovating existing buildings and planning new ones will be postponed, but not cancelled, until a later date.

Despite many cutbacks on capital improvement, the plan to build The Locatelli Student Activities Center will continue this year because of separate fundraising.

Fong said there have been no layoffs in the past several years due to economic recession and no planned layoffs exist as of now. There will also not be any reductions in courses offered at Santa Clara.

The University of California system is considering imposing numerous cuts on curricula and a 30 percent tuition increase for next school year.

Santa Clara is currently not taking this route.

Money is primarily being collected from budget cuts that decreased spending, the across the board temporary termination of salary increases, and the rise in tuition.

Many areas, like the Santa Clara Music Department, have already experienced cuts.

"It was a cooperative effort within the department and we voluntarily reduced our expenses last year," said Music Department Chair Nancy Wait-Kromm.

The Music Department decided last year to, among other things, reduce the frequency of piano maintenance and have the choir program use music that exists in public domain, in lieu of purchasing most of its music.

According to Wait-Kromm, despite these changes in the budget, the department maintained the high quality of the music instruction and program.

"We hope that the university's financial situation improves so no further cuts are necessary," she said.

Fong said there have been $2 million in budget cuts from some departments.

According to Fong, the redistribution of millions of dollars from places like the Music Department will go towards the academic sector and increasing aid to students during these difficult times.

Increased student assistance includes a new financial aid program launched last year in response to emergency situations that resulted from the economic downturn.

After evaluating many scenarios last year, close to 100 students received the Santa Clara Emergency Aid (SCEA). Students were assisted with additional financial aid provided by donors,àfaculty, staff and friends of the university in response to a special solicitation.à

Some students without a financial emergency also saw a rise in their aid.

"Although there was an increase in tuition, my financial aid increased about the same amount" says sophomore Chad Cachero.

Despite increased assistance from the Financial Aid Office in response to increased tuition and a slow economy, some students, like sophomore Jenny Vandenbelt are feeling financial pressure regardless.

"I feel like my parents are already paying an incredible amount and the rise in cost just means my parents put even more pressure on me to get the best out of Santa Clara," she said.

"It makes me feel more inclined to really soak it up because my dad works so hard to keep me going here."

Senior Kellie Quist was also affected by the global recession and the rise in tuition.

"My dad's company wasn't taking as much business as other years and my family and I had to come up with a much greater difference," she said. "Money was tighter and the rise in tuition didn't help at all."

About 70 percent of Santa Clara's funding comes from tuition.

Despite Santa Clara's high dependency on tuition, a financial research company feels confident about the university.

Moody's Investor Service--which performs financial research and analysis on both profit and non-profit entities--has increased its rating on Santa Clara to AA3. According to Moody's, this is the second-best rating and labels universities like Santa Clara as "high quality and subject to very low credit risk."

"They looked at our financial strength, management, trend of enrollment and revenues," said Fong. "They believe we have sufficient resources to justify a higher rating."

Santa Clara is one of only three Jesuit universities with such a rating.

Should the recession worsen next year, Fong said the university's financial team would look at expenses and programs to see which ones can be cut without jeopardizing the university's mission.

Contact Jesus Diaz at (408) 554-4546 or jadiaz@scu.edu.