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The global economic decline that developed into a recession this year dramatically
changed the college’s financial outlook for future years. Steep endowment losses,
coupled with a volatile enrollment and financial aid environment as well as challenges
in realizing annual giving goals, focused our efforts on developing budget strategies
to resolve operating deficits that would materialize if spending were allowed at
the levels reflected in the college’s financial plan.
In addition, even prior to the present -- and significant
-- financial downturn, Smith and other similar institutions had begun to confront
long-term challenges: a
growth in expenses that exceeds growth in revenues, the rising cost of a Smith education
for students and their families, and a highly competitive admissions environment.
For all of higher education today, but particularly for small residential colleges
like Smith, the financial crisis has brought into sharp focus the urgency of examining
our revenue and expense model and finding new ways to deliver the excellent education
for which we are known.
This proposed plan outlines a $30 million reduction
in Smith’s annual cost
of operations that could be implemented by July 1, 2011. In making recommendations
to President Christ about this proposal, the Committee on Mission and Priorities
and the Advisory Committee on Resource Allocation were guided by principles central
to Smith’s mission:
- Sustaining the quality and diversity of the student body, continuing to meet
the demonstrated financial need of students from a wide range of socioeconomic
backgrounds
- Ensuring the excellence of Smith’s academic program, protecting its core
and distinctive strengths
- Giving priority to the strategic goals of the Smith Design for Learning
- Protecting Smith’s core physical assets
- Continuing to invest in sustainability, to reduce energy expenses and footprint
- Expanding Five College cooperation
- Securing the college’s long-term financial integrity
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Message from
the President
Introduction
Employee
Compensation
Student-to-Faculty
Ratio
Comprehensive
Fee
Revenue
Facilites & Utilities
Study
Abroad
Libraries &
Information
Technology
Services
Administrative,
Student & Academic Support
Revenue
Generation
Investment
Required
Appendix
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