Present: Jonathan Brand, Tom Crady, Mark Montgomery, Mickey Munley, Jack Mutti, Todd Reding, Susan Schoen, Helen Scott, Marci Sortor, Jim Swartz, Frank Thomas, and Karen Voss.

Jonathan Brand opened the meeting at 8:06 a.m. Central Standard Time. He provided the Committee with a quick update on the recent Board of Trustees' meeting and the Board's approval of the FY2004 budget. Jonathan explained that the Board had significant discussions regarding our endowment payout policy and the need to decrease the endowment payout and contribution to the base budget. A wide array of opinions were expressed by the Board about how to do this. Models contemplating lower payout rates and smaller operating budget contributions from the endowment are being prepared by Karen Voss and David Clay. The Board's Budget and Investment Committees are meeting in person in New York on April 21 to discuss this matter, in advance of a fuller discussion at the May meeting on campus.

Discussion ensued regarding the Board's thoughts about the growth of the expenditure base of the budget. It has grown consistently in recent years, in part due to the Fund For Excellence. The College needs to focus on decreasing the growth in expenditures or at least keeping the base flat.

Karen Voss reported on the FY2005 and FY2006 budget projections. She explained the assumptions they used in the projections for the budgets for FY2005 and FY2006. Discussion ensued. A lengthy discussion ensued concerning the College's budget and the issue of reducing it as necessary. A key component of the budget is the tuition and fees assessed annually. The Committee will begin work to try to develop a tuition policy for the college as a guideline for setting the annual comprehensive fees. The Committee agreed that the issue of budget reductions is complex and should be done over the longer-term.

Karen Voss discussed the FY2003 variance analysis. She projects the College will end the fiscal year within budget.

Jonathan Brand recommended tabling the agenda items concerning copying charges, Grinnell/Windsor House charges, and the Pioneer Card to a later meeting when John Kalkbrenner will be in attendance.

Karen Voss reported she will be able to produce and distribute departmental budgets later in March. The Committee was pleased to learn that and looks forward to receiving them.

Finally, the Committee agreed that its next meeting will be devoted to producing lists of areas in the budget that could be conceivably reduced and/or eliminated in the long-range.

The meeting adjourned at 9:25 a.m. Central Standard Time.

Respectfully submitted,

Susan M. Schoen