Minutes from the November 14, 2001 Meeting of the Budget Steering Committee
Present: Jonathan Brand, David Clay, Tom Crady, John Kalkbrenner, Mickey Munley, Jack Mutti, Russell Osgood, Todd Reding, Helen Scott, Paula Smith, Jim Swartz, Frank Thomas, and Karen Voss.
The meeting was called to order at 7:20 a.m.
The Committee discussed the goals of the meeting. More specifically, it was noted that, during the meeting, the Committee would:
- Review the broad budget parameters;
- Clarify the process that it will use moving forward to develop a realistic and balanced budget; and
- Discuss the direction of next year's overall budget parameters and goals in light of strategic priorities.
The Committee then briefly discussed the broad budget parameters on which the Board focuses, including comprehensive fees, the endowment contribution to the base budget, private gifts and grants, debt financing, and faculty and staff salary pools. On the revenue-side, the Committee noted that the financial aid budget will need to be increased because Grinnell students will likely have greater need in light of market conditions, pre- and post-September 11th. It was also noted that it will likely be difficult to meet fundraising targets as well because people's giving priorities have shifted.
The Committee then discussed the College's highest strategic priorities. It was noted that meeting full demonstrated need and ensuring that faculty and staff salaries continue to attract and retain the best are the greatest strategic priorities. Specifically, President Osgood noted that faculty salaries appear to have lost ground in relation to our peers. As a result, he supports ensuring that our faculty salary pool is funded with this in mind. The College is also preparing for a significant fundraising effort, which will require increased funding. President Osgood suggested that we increase support of student-faculty research next year as well as of strategic marketing efforts. Finally, there are ongoing costs related to the new facilities approved by the Board of Trustees. The Committee will consider these and other priorities as it develops its budget recommendations.
The Committee discussed how to proceed with the development of next year's budget. It was agreed that the Committee would disseminate a memorandum to the entire community explaining the budget environment and asking people to resubmit budget requests that anticipate a zero percent increase in the aggregate. Discussion ensued. It was noted that an across-the-board cut might foster an environment that fails to encourage innovative thinking and more flexible planning. As a result, people will also be asked to itemize those strategic initiatives in their area that they would like to see funded if resources permit. This Committee hopes that some budgets can be effectively reduced below this year's level in order to focus resources on the College's higher priorities.
The Committee plans to hold an open forum in the next few weeks.
The meeting adjourned at 8:45 a.m.
