Full Minutes form the September 20, 2002 Meeting of the Budget Steering Committee
Present: Jonathan Brand, David Clay, Tom Crady, John Kalkbrenner, Jacob Kaufman- Osborn, Mark Montgomery, Mickey Munley, Jack Mutti, Russell Osgood, Todd Reding, Susan Schoen, Helen Scott, Marci Sortor, Jim Swartz, Frank Thomas, and Karen Voss. (Mark Miller - observing).
Jonathan Brand opened the meeting at 11:17 a.m. He noted that the College closed the last fiscal year within budget. Many factors contributed to this positive final result, including unrestricted giving which exceeded projections, greater than expected utility savings, and overall fiscal caution. Committee members, while pleased with the positive final result, understand the need to continue to be fiscally cautious in the current and future budget years. The result of the year-end positive balance, therefore, has increased the College's unrestricted fund balance.
Discussion continued regarding the FY 2004 budget models. One model, which contemplates a 5% increase in the comprehensive fee, was presented to the Board last May. The other model tentatively assumes a 3.9% increase in the comprehensive fee. The Committee discussed the advantages and disadvantages of recommending a tuition increase that is lower than has been the case in recent years at the College. A discussion ensued regarding the wisdom of instituting a relatively low increase in the comprehensive fee and/or increasing significantly the salary pools, particularly when peer schools are experiencing financial challenges. It is believed by many on the Committee that our peer schools will likely raise tuition significantly due to the pressure to generate more revenue (in light of their endowment performances). There was a consensus that, under either model, the College needs to continue to practice fiscal caution.
Jonathan Brand stated that he would draft the memo to the campus departments and budget cost centers, soliciting budget requests for next year. He asked what message this memo should contain. Discussion ensued. Committee members suggested that the memo include a congratulatory note on the job well done this past year; a reference to the Budget Steering Committee's document about the FY 2003 Budget on the College website; specific success stories about budget areas which effectively maintained fiscally sound budgets; and encouraging people to consider re-allocating resources from less worthy programs toward more worthy ones. In this same vein, the Committee recommended that the memo sent to each department and budget area be accompanied by an accounting of actual expenditures for the past two or three years for that department. Jonathan Brand will also include the budget timeline in the memo.
Finally, the Committee agreed with the suggestion by Jonathan Brand to form a sub-committee of the Budget Steering Committee, whose purpose will be to review and prioritize each non-academic expenditure request and make recommendations to the full committee, as a step toward making the internal budget process more efficient. The sub- committee's membership is Jonathan Brand, Tom Crady, John Kalkbrenner, Marci Sortor, Frank Thomas, and Karen Voss. This group will begin when budget requests are submitted.
The meeting adjourned at 12:19 p.m. CDT.
Respectfully submitted,
Susan M. Schoen
