In its April meeting, the Board of Trustees approved a budget of $196.9 million for the 2013-14 academic year. According to Provost Will Dudley, this budget represents a 4.3-percent increase over last year’s budget, which was projected at $188.9 million. “Some of the increase is for one-time, gift-funded items, so the growth in underlying college expenses is 3.4 percent,” Dudley said.
Most of the increase in the College’s budget is due to rising costs, though the College will see increased spending in part due to the construction of Stetson-Sawyer Library, which is on track to open in Aug. 2014.
“Most of the increase is due to inflationary pressures rather than new initiatives,” Dudley said. “Library journals and food are two of the essential areas in which costs are rising. Debt service payments will also increase, due to the anticipated bond issue to complete the new library.”
The College’s budget this upcoming academic year also reflects the purchase of a new transmission electron microscope, which will be funded by an endowment aimed at improving the College’s technology. Dudley said that this microscope costs $750,000, which contributes to this upcoming year’s increased budget.
Dudley indicated that the College’s budget derives from three main sources of revenue: endowment earnings, student charges, new gifts and grants and conferences. The endowment constitutes the largest portion of the College’s budget, accounting for 47 percent of spending. Student charges fund the next largest portion, accounting for 35 percent of spending. New gifts and grants and conferences comprise a significantly smaller portion of the budget, accounting for 12 percent and 6 percent respectively.
“Those shares of revenue have remained quite stable in recent years,” Dudley said.
In March, the College announced that it would increase its comprehensive fee by 3.75 percent for the 2013-14 academic year. This increase will partially compensate for the increased budget (“Comprehensive fees rise for 2013-14,” March 13). Additionally, the endowment is reportedly exceeding expectations this year (“Endowment exceeds projections,” Nov. 14). The endowment’s target growth was 5 percent, but as of June 30, the endowment’s 10-year return was projected at 5.6 percent.