College tightens belt, makes no promises about tuition freezes
Mary Petrides
Issue date: 9/10/09 Section: News
Across the board, the college is tightening its belt, cutting travel costs and two Imprimis issues, as well as paying President Larry Arnn 20 percent less than last year.
The college endowment is bouncing back after last year's 20 percent decrease, but progress is slow, and Chief Financial Officer Ken Cole said it's too early to tell what this year's trend will be.
"We're all relieved that the college has come through in the last year," Arnn said. "And we're cautious about the next year, but we're hopeful."
Meanwhile, a tuition hike may be on the horizon. College administrators said they can't say yet whether this year's college pricetag freeze will be extended to next year.
The endowment bottomed out in March 2009, and Cole said it's returned about 12 per-cent since the beginning of March.
Cole said the endowment had a $5 million growth in July 2009, and he said he thinks the endowment grew in August.
Arnn said the trustee board makes final budget decisions, including tuition, in May.
"First of all, we don't raise tuition much around here," Arnn said. Competitors, he said, compound their tuition twice as much as Hillsdale does.
To compensate, Hillsdale is making budget cuts.
Vice President of Administration Rich Péwé said most of the reductions happened in administration. Last year, the college employed 433 full-time workers with benefits - the most the college has had at one time, Péwé said. This year, the college employs 422 full-time employees, he said.
No one was fired or laid off, but when employees retired, their positions were absorbed, mostly by student workers, rather than replaced.
No current employee received a raise this year, saving the college at least $650,000, Arnn said.
Arnn took a 20 percent pay cut, despite objections from the board of trustees, he said.
Arnn said the college is "taking a more scientific approach to travel," looking for discounts on rental cars and airfare.
Additionally, the college saved about half a million dollars by printing 10 issues of Imprimis instead of 12.
"Now it's just a matter of watching what we spend and making sure we do what we planned to do, and we should be in good shape," Péwé said.
The college endowment is bouncing back after last year's 20 percent decrease, but progress is slow, and Chief Financial Officer Ken Cole said it's too early to tell what this year's trend will be.
"We're all relieved that the college has come through in the last year," Arnn said. "And we're cautious about the next year, but we're hopeful."
Meanwhile, a tuition hike may be on the horizon. College administrators said they can't say yet whether this year's college pricetag freeze will be extended to next year.
The endowment bottomed out in March 2009, and Cole said it's returned about 12 per-cent since the beginning of March.
Cole said the endowment had a $5 million growth in July 2009, and he said he thinks the endowment grew in August.
Arnn said the trustee board makes final budget decisions, including tuition, in May.
"First of all, we don't raise tuition much around here," Arnn said. Competitors, he said, compound their tuition twice as much as Hillsdale does.
To compensate, Hillsdale is making budget cuts.
Vice President of Administration Rich Péwé said most of the reductions happened in administration. Last year, the college employed 433 full-time workers with benefits - the most the college has had at one time, Péwé said. This year, the college employs 422 full-time employees, he said.
No one was fired or laid off, but when employees retired, their positions were absorbed, mostly by student workers, rather than replaced.
No current employee received a raise this year, saving the college at least $650,000, Arnn said.
Arnn took a 20 percent pay cut, despite objections from the board of trustees, he said.
Arnn said the college is "taking a more scientific approach to travel," looking for discounts on rental cars and airfare.
Additionally, the college saved about half a million dollars by printing 10 issues of Imprimis instead of 12.
"Now it's just a matter of watching what we spend and making sure we do what we planned to do, and we should be in good shape," Péwé said.
Viewing Comments 1 - 3 of 3
Philmont
posted 9/10/09 @ 7:38 PM EST
I like this a lot, it shows that the president is dedicated to showing that he cares not just about earning a paycheck, but that he wants to take as big a stride and do his part in helping out the college as anyone. (Continued…)
Clavius
posted 9/12/09 @ 10:19 PM EST
I've got to think with what the Obama adminstration is doing, that many more parents will chose to send their children here. Not sure cutting back on Imprimus is such a good idea, as it is a very good marketing tool for the school. (Continued…)
Mark
posted 9/13/09 @ 5:30 PM EST
Here's to *not* turning Hillsdale into any more of a neo-conservative WorldNetDailyU than it already is...
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