HC budget to increase 4.6 percent
By biconews On 15 Feb, 2000 At 05:00 AM | Categorized As Archives | With 0 Comments

By Tim Harvey

After a budgeting process of many months, Haverford College’s 33-person Board of Managers agreed unanimously Saturday morning to raise the overall cost of Haverford enrollment a record $1,450.

Both the Board of Managers’ Finance Committee and the Administrative Advisory Committee (AAC) reviewed the proposed budget this fall and winter. Each discussed the proposal at length before making its decision, signing a plan which charges students $32,850 for the 2000-01

school year.

The overall budget was determined based on an enrollment of 1,060 full time students. This statistic includes all students who attend Haverford for the full year and considers students who go abroad for a semester as half each. Due to a student retention rate that Richard Wynn

referred to as “extremely strong,” the administration expects over 1,100 students next year. Wynn, Haverford’s Vice President for Finance and College Treasurer, said that the excess money from these 40 or more students will “protect against budget problems, such as financial aid overspending,” as well as other unanticipated fees.

While the $1,450 increase does not represent the greatest percent leap in the history of the school, the additional 4.6 percent, compared to the l999-2000 rates, carries more benefits to the student body along with the higher cost.

Two of the most marked increases center on diversity and financial aid. When asked about his goals in making improvements in these areas, Wynn replied. “This is an attempt to make Haverford College more diverse. It grows out of many events which have led [the college] to focus attention on enhancing diversity.”

The budget doubles both Padin and Reid scholarships for African American students. In addition to the regular need-based aid, these two scholarships will allow selected high-achieving students do less work-study than they would under current college policies. In addition, these

students may not be required take out as many loans. Wynn hopes that efforts to support the Office of Multi-Cultural Affairs, Outreach, Multi-Cultural Recruiting and increased staffing of Minority Scholars Program will have a significant effect on diversity.

In addition to the aid specifically intended for African Americans, a new methodology adopted by the College Scholarship Service (CSS) will result in a lower expected contribution of parents whose incomes range from $40,000 to $100,000. All of these families will get more assistance than last year and those people are on the low end of the range should anticipate more help relative to wealthier people. This money comes from tuition directly because the Board approved raising the College’s maximum percentage of tuition money devoted to financial aid from 24 to 28 percent.

A five-percent increase in faculty and staff salaries as well as a 6.8 percent gain in total compensation are also included in the budget. Staff pension will now match that of the faculty at 12 percent which will be up from 10 percent as of this year. Over $2,000,000 will be spent on Renewals and Replacements, division of the Physical Plant. Student wages for campus jobs are almost $30,000 total as a result of increasing the minimum hourly wage by 25 cents to $7.25. Finally, networking and technology affected the final budget, as did a centralized telephone system. It will defray some of the charges that students currently pay for themselves.

In his first year as chairman of the AAC after being involved for several other years, Sidney Waldman claimed that this year’s budget was “average in terms of how hard it was to pass.” He recalls a number of years in the ’70s when it was a real struggle to come to terms with the annual breakdown of money.

Other members of the AAC include Rob Manning, Shizhe Huang, Bruce Bumbarger, Donna Mancini, Elaine Hansen and Tom Tritton. The three students on the committee are Craig Irrgang ’00, Sakeenah Hicks ’01, and Chris Watson ’02.

Watson, who sat in on the committee for the first time this year, said that in general Haverford likes to stay in the middle of its peer group, a collection of ten equally competitive liberal arts school in the country. Much of Watson’s work this year was adjusting to the system, and he

claims that there are “all kinds of different components [involved].” The committee addressed issues such as a second water main for Haverford’s campus, especially since fund-raising for an improvement like this is next to impossible.

As Wynn and Waldman suggest, many of the schools in Haverford’s peer group have incomparably large endowments. This gives them much more financial flexibility. Founded 31 years after Haverford, Swarthmore College currently has about 1,400 students. That school’s endowment per student came to $620,000 in 1107 or almost $750 million. During the 1997-98 year, Swarthmore’s total expenditures equaled $74.8 million. In contrast, Haverford’s endowment as of Dec. 31 was $297 million and its expected budget for this coming year is $47 million.

Williams College is another example of exceptional wealth and investing. As a result of the stock market’s surge in 1999, Williams does not plan to increase student charges at all in 2000. Responding to why Williams can afford to not increase fees, Waldman credits “unusual investments which have paid off for them.” He explained that while most colleges average a return of 11 percent, as did Haverford last year, Williams walked away 28 percent richer on its investment.

Last year, being sixth of the eleven schools in its peer group, Haverford will likely jump to fifth or higher depending on the final decisions of the schools besides Williams. This tightly packed group was separated by a mere $1,372 last year. Amherst topped the group, charging $31,819, and Smith the lowest, at $30,442.

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