Budget Steering Committee Minutes - October 13, 2004
Present: Jonathan Brand, David Clay, Leslie Gregg-Jolly, John Kalkbrenner, Doja Khandkar, Wayne Moyer, Russell Osgood, Susan Schoen, Marci Sortor, Jim Swartz, Frank Thomas, and Karen Voss.
Jonathan Brand opened the meeting at 8:34 a.m. Central Daylight Time. He distributed the revised budget surplus policy which the Board's Budget Committee recommended and which the Board approved at its recent meeting. The policy states that:
If the College has a budget surplus in a given year, it will be added to any existing surplus; provided, however, that the aggregate carryover will not be more that 1% of the following year's operating budget. Any excess over 1% of the following year's operating budget shall be allocated to the endowment. If the College goes over budget in a given year, any carryover surplus will cover the current year deficit first.
The discussion then moved to the FY 2006 budget development. Jonathan Brand reported that the budget requests had been distributed to the budget managers on campus and are due back at the end of the month. Discussion ensued regarding the broad budget parameters.
Budget Contingency. Discussion ensued regarding the general contingency fund and increasing the fund to a number which could better handle unforeseen budget shortages in areas such a utility costs, financial aid shortfalls, etc.
Enrollment. Discussion ensued regarding the draft strategic plan's current recommendation that the enrollment of the College be increased to closer to a total of 1500 students. This increase would be implemented incrementally over several years. The current first year class is larger than projected which has impacted the budget and will over next three years. The Committee agreed that the targeted number of first-year students in future budget models should decrease modestly compared to the past to avoid higher than expected enrollments.
Comprehensive Fee. Comparative data about comprehensive fees at our peer institutions and with our Midwestern college peers indicate that Grinnell's fee is below the 90% level which has been a general goal. Discussion ensued regarding the fee and the need to increase it in the budget model for FY 2006. The exact increase percentage will also be influenced by the recommendation of the strategic plan.
Salaries. The Committee agreed that the Faculty Budget Committee had done a commendable job in increasing the salaries of those faculty at the assistant professor rank over the last two years, and that in those same years, the raises for the faculty at the associate professor and professor ranks have been lower. The Committee agreed that a higher than recent increase in faculty salaries may be needed to avoid a decline in the faculty salaries of those at the upper ranks. The Committee also discussed staff salaries.
Financial Aid. The Committee discussed the deterioration in the College's discount rate. There was agreement that a re-vamping of the College's financial aid award methodologies is needed and next year's budget should include consideration of any change in this methodology, any comprehensive fee increase, the three Posse classes, and the book expenses and other incidental and personal expenses students incur at Grinnell.
Gifts and Grants. Discussion ensued regarding the projection in the FY 2006 budget for unrestricted giving, based on the recent performance in that area and the projection in the current budget. The Committee noted that there is a current national trend in higher education annual fund giving of a reduced number of total donors and stagnant total dollars raised. The Alumni Relations and Development office is working hard to increase and make more consistent the gift revenue to the College.
Endowment Spending. Discussion ensued concerning the contribution of the endowment to the operating FY 2006 budget.
Miscellaneous. Jonathan Brand reported that the FY 2006 budget model would also be slightly increased to reflect the proposed completion of the Joe Rosenfield '25 Center in May of 2006.
Finally, discussion ensued regarding the Committee's next steps. A meeting will be scheduled shortly after the budget requests deadline has passed. Jonathan is making plans to appear at the meetings in two weeks of the Executive Council and the Student Government Association, to provide updates with respect to the Committee's progress on the FY 2006 budget model.
The meeting was adjourned at 9:26 a.m.
Submitted by,
Susan M. Schoen
