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ANTIOCH COLLEGE
REVISIONS TO THE FINANCIAL PLAN FOR FY2002
WITH INITIAL PROJECTIONS FOR
FY2003 and FY2004
DEVELOPED IN CONSULTATION WITH AND APPROVED BY ADCIL BY A VOTE OF 5-4.
Submitted to the Board of Trustees
December 1,2001
James W. Hall
Acting President
I. BACKGROUND, PROCESS, and VALUES
Antioch College is firmly committed to fulfilling the goals of its Strategic
Plan. One goal in that plan is to increase student enrollment, growing the campus
steadily toward and beyond 800 FTE students. Achieving this goal will strengthen
the academic program by allowing the College to maintain and improve the range
and depth of courses offered to students through increased income and efficiency.
A second goal is to intensify raising the gift support essential for a strong liberal
arts program through a focused capital campaign. This campaign is in the early
stages of implementation. Its primary objective is to increase the College’s
endowment, thereby increasing income in support of the College program. This
plan, therefore, does not propose permanent reductions in Recruitment and
Admissions or Development. Success in these areas will provide the added
financial support essential for the future of Antioch College. We should expect the
next president to develop and implement the necessary actions to achieve the
enrollment and financial objectives of the Strategic Plan and to hold accountable
those administrators responsible for these objectives.
The Board of Trustees has asked for a revised budget for this and future
academic years based on the assumption that the College will project expenditures
that are closely tied to realized or reasonably anticipated revenues from all sources.
This will minimize the risks inherent in budget-making by taking a conservative
approach to projecting revenues. This is a shift in the Board’s support of
expenditures at a level that anticipated a presumed enrollment of 800 FTE students.
The effect of this cannot be minimized. The proposed reduction addressed by
this plan cannot be accomplished without having a dramatic effect on the College’s
ability to achieve its goals. Therefore, it is essential that we give priority to the
academic capacity, and plan to rebuild it as soon as additional revenues become
available. With this understanding, Antioch College will aim for a balanced budget
in
FY2002,
and achieve a fully balanced budget in
FY2003
and beyond.
On October 25,2001, Acting President Jim Hall asked AdCil to appoint a
College-wide ad
hoc
Financial Planning Committee. AdCil appointed the
committee, initially including eight community members, half from AdCil
membership. Following community discussions, Hall asked AdCil to broaden its
membership to be more inclusive of the community.
The membership is as follows:
Tim Noble
Daniel
Solis
Busola
Anafi
Dietrich
Delrieu-Schulze
Hassan
Rahmanian
Hazel Latson
Pat Linn
Tom Haugsby
Ann
Filemyr
Carole
Braun
Larry
Brickman
Robert
Fogarty
James Hall
Barbara Stewart
Hassan Nejad
Sally Frye
student
student
student
community manager
faculty
faculty
faculty
faculty
faculty
staff
staff
faculty
convener
administration
administration
staff to committee
The Financial Planning Committee considered the following values and
priorities in devising this plan:
1. Preservation oft& broad Liberal Arts and Sciences character of the
curriculum
2. Sustaining the quality of the relationship between the College and its
Students
3. Fulfilling the contractual obligations to all parties
4. Ensuring a stable financial base for future planning in continued
fulfillment of the College Strategic Plan
5. Emphasizing voluntary election by individuals as a preferred option
6. Continuing to stress increasing revenue while containing expenses within
available revenue
11. FISCAL SUMMARY AND OBJECTIVE
Cash Basis ~udgetl
Approved expenditures in FY200 1
Actual expenditures in FY200 1
Cash deficit in FY200 1
Additional subsidy in FY200 1 (included in actual expenditures)
Projected expenditure level for FY2002, if rate unchanged
Increase over FY200 1 budgeted
Increase over FY200 1 actual
Budgeted gift income for College operations
Budgeted gift income for College campaign
Projected gross gap between expense and revenue
Projected revenue from endowment earnings and
University subsidy to close gap
Projected remaining cash gap closed by planned net reductions
Revised expenditure ceiling for FY2002
Projected deficit in FY2002
Projected expenditure ceiling for FY2003 (assumes 2.78% increase)
Projected deficit FY2003
Projected expenditure ceiling for FY2004
$1,739,000
$1,815,000
$18,476,000
TBD
The purpose of this plan is to project short and longer term expenditure
reductions that will close the projected gap (worst case) of $3.554 by a net of
$1.8 15 million. Some of the proposed reductions in FY2002 are applicable for only
one year and cannot be sustained beyond this period. Other proposed permanent
reductions provide little if any savings in FY2002, but larger savings in FY2003
and beyond. With the best efforts, it will be a challenge to achieve the full
reduction in FY2002. However, the full reduction will be realized in FY 2003 and
beyond.
I Depreciation is included in these totals. In FY2002 – FY2004, University overhead paid by Antioch College is
waived as an offset to including depreciation in the College operations budget. Additional subsidy is provided to
balance the complete depreciation cost ($ 1,450,000 in FY2002).
The projections shown above reflect no assumptions regarding possible
additional increases in revenue based on higher enrollments, increased income
from endowment based on receipts from the capital campaign or increases in
investment value of the portfolio, or increased gifts and grants. All of these are
possible in this or future years. Such increases would allow for budget additions in
support of the strategic plan. The Plan also makes no assumptions regarding
increases in compensation. It reflects known increased or reduced costs where this
information can reasonably be predicted. Although the expenditure ceiling is
increased by a net of
2.78%,
in 2003-2004 ($200 in tuition discounts is included),
the assumption is that this increase will support inflation in costs and any
compensation increases.
111. PLANNED EXPENSE REDUCTIONS
Planned reductions and some additions are projected in five functional areas:
1. College-General
2. Adm inistrative Support
3. Academic program
4. Student Services
5. Development
A) COLLEGE-GENERAL
Employee reductions based on current
non- faculty vacancies, except as farther
specified below
Reductions
Utility savings
Natural gas price reductions
Savings from current 2% salary cap
Reductions
Savings in projected interest
payments and loan renegotiation
Capitalize certain expenses
Additional temporary expense reductions
e.g. university conference, S & E, etc.
Known or projected additions
Tuition Discounts
Medical Benefits
Discount estimated based on FY 2001 increase of $600,000, or 20% above planned budget. $200,000 is shown as
an additional operating expense, and an additional $200,000 is shown in parenthesis as included in the net tuition
increase (see page 5).
SUMMARY NET SAVINGS FY2002 FY2003 FY2004
$670,000 $49 1,000 $5 18,806
with additions (-3 10,000) (-650,000)
NET $6707000 $18 1,000 (- 13 1,194)
B) ADMINISTRATIVE SUPPORT
Expenses in this area are essential to continued operation of the campus and
services to students. Other expenses, such as medical benefits, are increasing even
as we plan. However, the following reductions appear to be achievable in
FY2002.
Some cannot be sustained in
FY2003
and will require that other reductions replace
them.
1. Consolidation. The Finance Committee has asked us to consider possible
consolidation for increased efficiency and range of services in support of
the two Yellow Springs campuses and the University Administration. The
areas under consideration in this regard are Plant Maintenance and Security,
Finance and Accounting, Human Resources, Information Technology and
Communications. Cost-sharing (see
#4
below) is also a product of
consolidation.
Consolidation Reductions
2. Overtime Cost Reductions
3. Recruitment and Admissions
FY2002
FY2003
FY2004
Savings already planned (112) year $90,000 $0 $0
Hold vacant four budgeted positions in 02,
two in 03, zero in 04 $175,000 $85,000 $0
Defer Search until 03 $90,000 $0 $0
Operations savings $74,000 $0 $0
4. Additional revenue: Cost sharing support from UniversityIMcGregor
SUMMARY REDUCTIONS
C) ACADEMIC PROGRAM
1. Eliminate Summer Institutes
FY2002 FY2003 FY2004
Reductions $6,000 $33,000 $33,000
2. Eliminate Teaching Assistants
FY2002 FY2003 FY2004
Reductions $0 $16,000 $16,000
3. Expense Reduction AEA
FY2002 FY2003 FY2004
Reductions $20,000 $25,000 $25,000
4.
FY2002
FY2003
FY2004
a.) President to Campaign $42,000 $20,000 $0
b.) President Sabbatical accrual $0 $60,000 $50,000~
5, Tenure Relinquishment Reductions FY2002 FY2003 FY2004
$4,000
$300,000~
$300,000
6. Other reductions TBD
3 Compensation adjustment.
Assumes one-time charges to revolving fund as accrual.
7. Additions
FY2002 FY2003 FY2004
Re-filling high priority faculty positions5 $0 $100,000 $200,000
Move senior administrator to faculty $0 $80,000 $80,000
SUMMARY REDUCTIONS FY2002 FY2003 FY2004
$99,000 $500,000 $470,000
With additions $99,000 $320,000 $190,000
D) OFFICE OF THE DEAN OF STUDENTS
1. Eliminate On-Campus Co-op Stipends
FY2002 FY2003 FY2004
Reductions $0 $18,000 $1 8,000
2. Streamlining of Functions
FY2002 FY2003 FY2004
Reductions $25,000 $100,000 $100,000
FY2002
FY2003
FY2004
SUMMARY REDUCTIONS $25,000 $1 18,000 $1 18,000
5 Although the precise timing of position refills varies, some of the positions vacated through tenure relinquishment
must be refilled quickly to maintain the academic program.
9 12/3/01
E) COLLEGE DEVELOPMENT
The College Development office is continued at the FY2002 filled
levels, with two key vacancies (V.P. Development, Major Gifts). Campaign
operations costs are reduced and transferred to the College campaign budget.
Initially, the College campaign staffing and operations is supported by
special lead gifts. Funds already budgeted and / or expended in College
operations are transferred to the campaign as funds are received. Additional
staff will be employed for the campaign as gift funds permit.
However, one important goal of the campaign is to strengthen overall
giving, including the annual fund. Gradually the College Development
office will be re-staffed, first by filling the current vacancies
(FY2003)
and
later the ongoing essential functions of that office
(FY2004
and beyond).
1. Vacancies
2. Program savings6
SUMMARY REDUCTIONS
IV. SUMMARY OF ALL PROPOSED REDUCTIONS
TOTAL REDUCTIONS
Moved expenses to campaign budget.
10 12/3/01
V. ADDITIONAL REDUCTIONS NEEDED
The above targeted reductions, while already very large, do not fully meet
the projected total reduction of $1.8 15M in
FY2003.
As the Closing Remarks
section testifies, assigning those additional reductions, almost certainly heavily
within the academic program, will have a devastating impact. Therefore, we urge
that this reduction amount of $367,000 in
FY2003
be deferred unless and until it
becomes certain that no added revenue can be found. Further, the Closing
Remarks section offers some suggestions for increasing revenue in the short term
to make this possible. We ask the Board of Trustees to consider these carefully as a
bridge.
If, after further consideration, we cannot find additional revenue, or if our
projected revenues fall short, these additional reductions will be achieved in
FY2003
by a combination of:
a) New hiring controls;
b) Review of visiting and term contracts and future Board tenure decisions
based on financial considerations;
c) Review of appointments not issued through the normal faculty personnel
processes
– d) Review of appointees in areas not as central to the liberal arts curriculum.
e) General salarylbenefits reductions;
f) Selected academic concentration, functions, or other staff reductions.
g)
Other reductions
FY2002
FY2003
FY2004
Unassigned Reductions $190,000 $367,000 $894,000
VI. CLOSING REMARKS
In the 2001 National Survey of Student Engagement (NSSE) sponsored by
the Carnegie Foundation for the Advancement of Teaching and the Pew Forum on
Undergraduate Learning, Antioch College stood above all other institutions of
higher education in the survey with the TOP SCORE for ENRICHING
EDUCATIONAL EXPERIENCES. (Survey includes 470 colleges and universities,
among them:
Earlham,
DePauw,
Case Western Reserve,
Beloit,
Denison). Antioch
College also ranked in the top 10% for the following measures: STUDENT
INTERACTION WITH FACULTY, ACTIVE AND COLLABORATIVE
LEARNING, and SUPPORTIVE CAMPUS ENVIRONMENT.
We know we are doing something right, and we are proud that this survey of
the quality of student learning in higher education accurately reflects our own
sense that Antioch College is delivering the highest quality education for
undergraduate students. In only the second year of NSSE, Antioch College
continues to out-rank its competitors in offering a truly unique and valuable liberal
arts undergraduate education.
It is the nationally recognized successes of Antioch College faculty, students
and staff that provide a strong reputation for all of Antioch University. The
University’s new
Ph.D.
Program explicitly links itself to the College reputation in
its very title, “Leadership and Change.” The College understands that over the past
few years the Board has supported the development of this new program. Yet
without Antioch College’s unique legacy and its ongoing survival, this brand new
doctoral program will not succeed. Therefore, it is with great seriousness that we
have undertaken the charge of the Board to maintain a balanced budget as we
consider the future viability of our educational model.
Challenges
The 2001-2002 listing of College faculty includes 67 names. It is important
to note that some of those listed do not regularly teach or advise students (such as
the Director of Glen Helen or the Dean of Students, though they do hold faculty
titles). If these are eliminated, that leaves 62 faculty positions. Of the 62 faculty
positions, 7 are co-op faculty; 4 are library faculty; 4 are AEA faculty responsible
for study-abroad programs in Japan, India, Brazil and Europe (these faculty only
offer one course per year as they travel with the program and are also responsible
for off-campus recruitment); and 1 AEA faculty member coordinates the Tubingen
program in Germany and teaches on campus part-time; an additional 3 faculty are
also part-time; 2 are
fulltime
administrators with faculty status who may contribute
at least one or two courses per year to the academic program but do not offer
regular advising. (Please see Appendix for actual numbers and location of current
faculty.)
This leaves 41
fulltime
classroom faculty and, of these, 4 are in Visiting
Faculty limited term contracts. The 41 classroom faculty are responsible for the
delivery of the entire liberal arts curriculum – they shape and deliver the academic
program, including academic advising and senior project supervision. In addition,
each term 1-2 faculty are on sabbatical (1 this Fall and 2 this Spring). Furthermore
by end of ’03 we are expecting five retirements – all of these are classroom faculty
– which reduces the number to 36. If we lose the four Visiting Faculty positions we
will be at 32 (see Appendix.)
Additionally, the College has put extraordinary effort forward in response to
its Strategic Plan approved by the Board in 1997. We have hired exceptionally
gifted new faculty, as evidenced by our high
rankings
in the 2000 and 2001 NSSE
Report. We conducted competitive national searches to locate these faculty. We
fear that if short-term financial need alone is used to judge their worth, and if the
result is to not grant tenure to deserving faculty, we will suffer serious costs in
losing students and being forced to conduct new searches to locate new faculty. If
these positions do not continue as tenure-track, it will be very difficult to attract
faculty to teach in Yellow Springs for low salaries and no opportunity for longevity
within the institution.
A small number of faculty are currently in visiting positions. One of these
Visiting Professors has been a member of the faculty for over 15 years and is
actually the longest-serving active
fulltime
faculty member in the department
where this position is located. Others filled positions which opened up when
faculty moved to administration or left the institution. All of these are classroom
faculty who teach fulltime, advise, and supervise senior projects. To simply
eliminate these visiting positions will have a serious impact. Moreover, some
faculty positions have been filled by Trustee mandate, avoiding established
personnel practices and internal processes. These have consequences both
financial and for faculty and staff morale.
How can our liberal arts curriculum be offered with 32 or fewer classroom
faculty? How can we maintain our high standards of quality, for which we are
being nationally recognized, if the faculty shrinks to this size? These are the
questions we have grappled with as we seek to meet the Board’s budget mandates.
Sadly, we concluded that it is impossible to sustain the current hiring freeze and
the elimination of faculty positions without negatively impacting the entire
institution. The loss of faculty positions inevitably translates into fewer students.
Some fear the ‘downward spiral,’ which the College experienced in the
1970s,
would be repeated resulting in the end of Antioch College.
While we recognize the importance of maintaining a balanced budget and a
stable financial base, we urge the Board to consider very carefully the impact,
much irreparable to our academic program, that full implementation of this plan
will have on Antioch College. Despite the data that suggests a faculty of 67,
Antioch College has, in fact, only 4 1 classroom faculty. Reductions in this core
will challenge our ability to offer an arts and sciences curriculum. We know from
bitter experience: student enrollment dropped dramatically from the College’s
largest student enrollment in 1973 of 2,470 to 475 by 1985. These drops in
enrollment led to faculty cuts, including closing departments and terminating
contracts with tenured faculty. Faculty in 1972-73 (including faculty in
administration) was 215 and by 1979-80 it had dropped to 96, a reduction of over
55% in that period. This led to more student departures. The downward spiral hit
bottom in 1979 when the College was unable to make payroll. We do not want to
see a repeat of this downward spiral.
We recognize that the budget gap reflects our growing pains as we attempt
to realize our goals as laid out in our strategic plan. We know we have not met all
of our targets, yet we also recognize our important gains and our newly emerging
national recognition as a result of this recent growth. We are asking the Board to
support the future of the College without causing irreparable damage to the
academic program. How can this be accomplished?
Solutions
We call on the Board during these next months to continue to seek creative
ways to provide the budget “bridge” that will lessen these proposed reductions.
The Committee offers a number of suggestions and asks that they be fully
explored. For example, we believe that a one or two year exemption from the
established endowment expenditure policy would permit us to expend as much as
an additional $300,000 to support student financial aid, freeing up those funds to
reduce the impact on faculty.
Another possibility is to apply in whole or part the projected increase in
tuition from increased rates to the reduction. This amounts to about $200,000.
Although there will be many claims against any increase in revenue, this could be
the highest priority for its application in the next two years.
While we recognize that the current fundraising targets are challenges within
the current budget, further increases in gifts and grants can help, and we appreciate
the leadership you are taking in the forthcoming campaign. Nonetheless, it does
make sense to us to embargo a portion of the proposed reductions, permitting it to
be expended if gifts should exceed the targeted amounts.
Another strategy is to seek funds for endowed chairs. This has been
successful in the past. We support this effort to bring stability and leadership to the
faculty. Perhaps there are Board members or alumni who are in a position to
support an endowed chair. We encourage all efforts to address this possibility.
In addition, we would like to participate in conversations with the Board
about the sustainability of the separation of the College administration from the
University administration. The current structure has been in place for less than a
decade and perhaps it is not feasible. We are also open to conversations involving
the shape and design of the two campuses in Yellow Springs. College faculty are
responsible for many of the academic programs offered “across the street” from
sharing their course syllabi to participating in the conceptual framework and
curriculum design of their academic programs. We know that Antioch University
is dependent on a thriving and successful Antioch College. It is in all of our best
interests to do what must be done to support the College at this critical time
Conclusion
The College is realizing its greatest academic success in over three decades
in the past few years as evidenced by the exceptionally high
rankings
in both the
2000 and 2001 NSSE Report. The College is poised to regain its national
reputation for innovation and excellence in undergraduate education. The College
has spent the past fifteen years striving to redesign its curriculum and hire the best
and brightest it can attract. All of this has brought great success.
We have known since undergoing the strategic planning process in 1996 that
the one thing we do not have is an endowment to offset the costs of our student
financial aid packaging. At last the Capital Campaign for the Endowment is
moving forward. Let us use every means necessary to hold the course until we can
experience the benefits of the capital campaign. We know that even in its
preliminary stages the Capital Campaign for the Endowment is attracting new
funds to the College.
Thank you for all you have done and are doing on behalf of the College.
VII. ASSESSMENT OF RISK
Risks in FY2003
Level of gift income $500,000
Increased tuition discounts $200,000
Savings from consolidation $150,000
Cost sharing from
UniversityIMcGregor
$200,000
Utilities savings $24,000
$1,074,000
Upside possibilities
Increased gifts $500,000
Utilities
Tuition (enrollment) $250,000
Increased income from endowment $300,000
Commitment of
proj
ected
Increase in net Tuition $200,000
$1,350,000
. AFFENDlX
+ FACULTY IN INTERDISCIPLINARY MAJORS & CONCENTRATIONS,
+ ,, CO-OP AND LIBRARY: ACADEMIC YEAR 2001-02
ARTS
(7 faculty: 3 tenured, 4 tenure-track)
Dance & Theater
Music
Visual Arts
CULTURAL & INTERDISCIPLINARY
STUDIES
(1 1 faculty: 5 1/2 tenured, 3 112 tenure-track,
2 visiting)*
AfricdAfrican-American
Studies
Communications: Film, Video
Photography, & Print Journalism
Education Studies & Teacher
Licensure
Environmental Studies
Peace Studies
Women’s Studies
ENVIRONMENTAL & BIOLOGICAL
SCIENCES
(4 faculty: 2 tenured, 2 tenure-track)
Biology
Biomedical Sciences
Environmental Sciences
Geology & Environment
HISTORY, PHILOSOPHY & RELIGIOUS
STUDIES
(3 112 faculty: 2 112 tenured, 1 tenure-track)
History
Philosophy***
Religious Studies
* designates one full-time faculty in
the Administration
** designates an additional 112 time
visiting for 2001-02 (paid with soft
money which may not be available in
the future)
*** designates one philosophy faculty
member retiring at the end of 2001-02
62 total faculty positions (includes 2.5
positions in AEA who teach in off-
campus programs)
LANGUAGES, LITERATURE, &
CULTURES
(6 faculty: 5 tenured, 1 tenure-track)**
Literature
Creative Writing
French
German
Japanese
Spanish
PHYSICAL SCIENCES
(6 faculty: 4 tenured, 2 tenure-track)
Chemistry
Computer Sciences
Mathematics
Physics
SELF, SOCIETY & CULTURE
(No Concentrations)
(3 112 faculty: I 112 tenured, 2 tenured-track)
Psychology
Sociology
Anthropology
SOCIAL & GLOBAL STUDIES
(6 faculty: 3 tenured, 112 tenure-track, 2 112
visiting)*
Economics
Political Science
Management
International Studies
Environmental Policy
ANTIOCH EDUCATION ABROAD
(3 112 faculty: 1 tenured, 5 – at 112 time)*
Antioch in Germany
Antioch
in Japan
Brazilian Ecosystems
Buddhist Studies in India
Buddhist Studies in Japan
Comparative Women’s
Studies in Europe
Europe in Transition
COOPERATIVE EDUCATION
(7 faculty: 3 tenured, 4 tenured track)
LIBRARY
(4 faculty: 1 tenured, 2 tenured track. 1 visiting)
