joecct
03-03-2009, 05:57 PM
And I thought $6K was bad enough in '77
From North Country Now
As endowments drop, colleges seek cost cuts
Tuesday, March 03, 2009, 8:46am
By CRAIG FREILICH
Endowments at St. Lawrence and Clarkson universities have dropped in value 25 to 30 percent during the last year, and both institutions are looking for ways to cut costs.
University officials say the cuts won’t be at the expense of scholarships or financial aid. But St. Lawrence has delayed one construction project, while Clarkson this year is undertaking at least two major projects.
Meanwhile, St. Lawrence University announced over the weekend that it is raising tuition and fees by five percent for next school year, to a total of $49,680. While those costs have been rising in recent years, the university says it is the lowest rate of increase in seven years.
“Our first objective is to remain very focused on ways to help students with their financial needs,” says Clarkson University President Tony Collins. He said he does not anticipate layoffs this year.
“We’re looking at reducing costs in areas that will not affect the educational program for students,” says St. Lawrence University spokeswoman Macreena Doyle. “We won’t be cutting majors or anything like that.”
“We recognize that students and families are likely to have difficulty in the coming year,” Doyle says, and for that reason St. Lawrence plans to increase its budget for financial aid. Eighty percent of St. Lawrence students receive some kind of financial aid, amounting to $38.5 million this year.
SLU also announced after a meeting of its board of trustees last weekend that they are increasing the amount of St. Lawrence-funded grants and scholarships by 8.2 percent.
At Clarkson, more than 95 percent of students get financial aid.
Economic Woes Impact Students
“There will be many cases where students will be negatively impacted” by the country’s economic decline, Collins says, “so we have to be prepared to help. The board has made it abundantly clear that students on campus now and those that will be coming will continue to get whatever support we can provide them. We are working hard.”
“President Sullivan feels that students and parents made a commitment to St. Lawrence when they came here,” SLU’s Doyle says. “They have come with a set of expectations, and it would not be responsible for us to say to them, ‘Well, it’s not going to be the way we told you it would, and by the way, you’ll be paying more.’ We’re not going to do that.”
The universities’ endowments -- investment funds from which they draw income to help run the universities -- have diminished in value as the stock shares they hold have dropped in value, along with the securities in markets worldwide. As the overall value declines, so does the amount of money those funds can pay out for use in the day-to-day running of a university.
Collins estimates that the endowment at Clarkson University has dropped in value by about 30 percent from its peak last year.
“It’s a lot of money,” says Collins, “and it will have a lot of effect on the bottom line. It’s not trivial.”
St. Lawrence University’s endowment is down about 25 percent from June of last year, Doyle says. But there are a couple of things to consider when calculating the impact of that. About two-thirds of the university’s roughly $100 million operating budget comes from tuition, room and board, and not from endowment income. Unlike universities with huge endowments that have come to rely heavily on income from them to run their programs, St. Lawrence has been using endowment income for only between 10 and 15 percent of operating expenses.
“Those with the largest endowments tend to be more dependent on them for running their institutions,” says Doyle. She cited Harvard as an example. Its endowment, the largest of any university, runs into the tens of billions of dollars.
If a university has been getting 40 percent of its budget from its endowment, and if that pot of investment capital suddenly drops in value by half, “it could be big. But a 50 percent cut of 15 percent -- sure, we would feel it,” Doyle says, but it’s not like seeing a 40 percent chunk of the budget you’ve counted on suddenly cut in half.
Clarkson officials said, in a statement from its board of trustees last fall, that it believes it is “well positioned to weather the current financial turmoil” because its investment team comprises “people who make their careers managing the funds of others and who follow the markets every day.”
Building Continues at Clarkson
As for building projects, Collins says Clarkson is “fully committed to moving forward with our construction program,” at least in part, he says, because it will mean jobs here. The university is in the middle of a major building plan, which includes adding onto dormitories this summer, and a new student center, work on which will begin this year.
Doyle says any new construction at St. Lawrence will proceed with an emphasis on those projects that can be built efficiently, can use energy efficiently, and will bring a return in the long run, such as a project that will attract students to the programs housed in those new buildings.
Doyle also notes that the prices of building materials and fuels have come down significantly in recent months.
St. Lawrence had put off for six months the next phase in the updating of the Griffiths Arts Center. Doyle says that project is being funded as gifts supporting it come in.
Admissions Up
Both universities have seen record numbers of applications and admissions in the last couple of years, and Doyle says that early admissions for the current admissions cycle stand at about the same level as last year.
“It’s perhaps unrealistic to expect further increases, but at this point interest and demand continue to be extraordinary.”
“No, we can’t be complacent about that,” Collins says. “Certainly compared with other institutions we have seen a significant increase. We have to be extra conscious of the fact that interest in Clarkson is higher than ever. We have to see students and parents get through this admissions process before we declare victory.”
But Collins believes the value of a Clarkson education – its literal value in the job market – is a key to getting through a deep recession.
“One of the things that sets us apart is continuing to see a good job market for our graduates. They are aware of our return-on-investment approach, and the return is very good for them. Students’ starting salaries are in excess of $50,000 and they feel that compensates for the effort they and their families put into it.”
From North Country Now
As endowments drop, colleges seek cost cuts
Tuesday, March 03, 2009, 8:46am
By CRAIG FREILICH
Endowments at St. Lawrence and Clarkson universities have dropped in value 25 to 30 percent during the last year, and both institutions are looking for ways to cut costs.
University officials say the cuts won’t be at the expense of scholarships or financial aid. But St. Lawrence has delayed one construction project, while Clarkson this year is undertaking at least two major projects.
Meanwhile, St. Lawrence University announced over the weekend that it is raising tuition and fees by five percent for next school year, to a total of $49,680. While those costs have been rising in recent years, the university says it is the lowest rate of increase in seven years.
“Our first objective is to remain very focused on ways to help students with their financial needs,” says Clarkson University President Tony Collins. He said he does not anticipate layoffs this year.
“We’re looking at reducing costs in areas that will not affect the educational program for students,” says St. Lawrence University spokeswoman Macreena Doyle. “We won’t be cutting majors or anything like that.”
“We recognize that students and families are likely to have difficulty in the coming year,” Doyle says, and for that reason St. Lawrence plans to increase its budget for financial aid. Eighty percent of St. Lawrence students receive some kind of financial aid, amounting to $38.5 million this year.
SLU also announced after a meeting of its board of trustees last weekend that they are increasing the amount of St. Lawrence-funded grants and scholarships by 8.2 percent.
At Clarkson, more than 95 percent of students get financial aid.
Economic Woes Impact Students
“There will be many cases where students will be negatively impacted” by the country’s economic decline, Collins says, “so we have to be prepared to help. The board has made it abundantly clear that students on campus now and those that will be coming will continue to get whatever support we can provide them. We are working hard.”
“President Sullivan feels that students and parents made a commitment to St. Lawrence when they came here,” SLU’s Doyle says. “They have come with a set of expectations, and it would not be responsible for us to say to them, ‘Well, it’s not going to be the way we told you it would, and by the way, you’ll be paying more.’ We’re not going to do that.”
The universities’ endowments -- investment funds from which they draw income to help run the universities -- have diminished in value as the stock shares they hold have dropped in value, along with the securities in markets worldwide. As the overall value declines, so does the amount of money those funds can pay out for use in the day-to-day running of a university.
Collins estimates that the endowment at Clarkson University has dropped in value by about 30 percent from its peak last year.
“It’s a lot of money,” says Collins, “and it will have a lot of effect on the bottom line. It’s not trivial.”
St. Lawrence University’s endowment is down about 25 percent from June of last year, Doyle says. But there are a couple of things to consider when calculating the impact of that. About two-thirds of the university’s roughly $100 million operating budget comes from tuition, room and board, and not from endowment income. Unlike universities with huge endowments that have come to rely heavily on income from them to run their programs, St. Lawrence has been using endowment income for only between 10 and 15 percent of operating expenses.
“Those with the largest endowments tend to be more dependent on them for running their institutions,” says Doyle. She cited Harvard as an example. Its endowment, the largest of any university, runs into the tens of billions of dollars.
If a university has been getting 40 percent of its budget from its endowment, and if that pot of investment capital suddenly drops in value by half, “it could be big. But a 50 percent cut of 15 percent -- sure, we would feel it,” Doyle says, but it’s not like seeing a 40 percent chunk of the budget you’ve counted on suddenly cut in half.
Clarkson officials said, in a statement from its board of trustees last fall, that it believes it is “well positioned to weather the current financial turmoil” because its investment team comprises “people who make their careers managing the funds of others and who follow the markets every day.”
Building Continues at Clarkson
As for building projects, Collins says Clarkson is “fully committed to moving forward with our construction program,” at least in part, he says, because it will mean jobs here. The university is in the middle of a major building plan, which includes adding onto dormitories this summer, and a new student center, work on which will begin this year.
Doyle says any new construction at St. Lawrence will proceed with an emphasis on those projects that can be built efficiently, can use energy efficiently, and will bring a return in the long run, such as a project that will attract students to the programs housed in those new buildings.
Doyle also notes that the prices of building materials and fuels have come down significantly in recent months.
St. Lawrence had put off for six months the next phase in the updating of the Griffiths Arts Center. Doyle says that project is being funded as gifts supporting it come in.
Admissions Up
Both universities have seen record numbers of applications and admissions in the last couple of years, and Doyle says that early admissions for the current admissions cycle stand at about the same level as last year.
“It’s perhaps unrealistic to expect further increases, but at this point interest and demand continue to be extraordinary.”
“No, we can’t be complacent about that,” Collins says. “Certainly compared with other institutions we have seen a significant increase. We have to be extra conscious of the fact that interest in Clarkson is higher than ever. We have to see students and parents get through this admissions process before we declare victory.”
But Collins believes the value of a Clarkson education – its literal value in the job market – is a key to getting through a deep recession.
“One of the things that sets us apart is continuing to see a good job market for our graduates. They are aware of our return-on-investment approach, and the return is very good for them. Students’ starting salaries are in excess of $50,000 and they feel that compensates for the effort they and their families put into it.”