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Preliminary Budget Presented to the Faculty

The FY 1999-2000 preliminary budget was presented to the faculty on March 4th. Steven Weinberg, Director of Budget and Planning, presented the budget objectives, noting that there will be sufficient time scheduled for the faculty to review the budget.

The expected enrollment figures, which in part determine revenue for the upcoming year, are projected to increase by less than 1 percent from 1999 projections. Weinberg also said he expected that the College will recommend a tuition increase of 4.7 percent. Subject to the Trustees' approval, this represents a $30 increase which would bring tuition to $670 per credit.

Other revenue would come from additional investment earnings, an increase in the TC Fund, and money generated by auxiliary sources, such as TC Press. Weinberg stressed that the College is still extremely dependent on tuition.

As for expenses, the preliminary budget showed a projected salary increase of 3 percent, a 2 percent increase for non-salary needs and an estimated investment of $975,000 to enhance 20 faculty searches that will increase the number of faculty from 120 to 140.

Investment for repairs and renovation expenses was recommended to increase by $100,000 to a total of $800,000. Financial aid would be raised commensurate with the rate of increase in tuition. The College deficit that was incurred during the late 1980s and early 1990s will also be further reduced.

When anticipated new revenues and expenses are combined, Weinberg said only $520,000 is projected to be available for other investments. "That represents less than 1 percent of the College's projected operating budget," Weinberg said. That figure excludes restricted monies and non-operating activities such as the Capital Campaign. On top of that, Weinberg said there are $6 million in supplemental requests. Among the requests are: $1.1 million for instruction, $1 million for financial aid, $1.1 million for academic support, which includes $690,000 for the library, along with requests by student services, administrative computing, and operations and maintenance.

The question was raised about how TC's tuition compares to that of other private colleges around the city. Dean Karen Zumwalt responded that NYU has set their tuition rate after we set ours for the last three or four years. Weinberg added that most institutions were not willing to give out their numbers and it was necessary for budget planners to use their best judgment in setting competitive rates.

The faculty was also interested in discussing income received from the endowment. Vice President for Finance and Administration Fred Schnur noted that, "Earnings from our cash balance are growing because the balance is growing." He added that restricted funds are not reflected in the budget, but that the combination of the two sources has grown significantly.previous page