Securing Smith's Financial Future

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Securing Smith's Financial Future
June 24, 2009
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Introduction and Welcome

• Carol T. Christ

• Ruth Constantine

President of Smith College
Vice President for Finance and Administration
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A History of Resilience
Florence, 1933
Madrid, 1933
Florence, 1932
Courtesy of Smith College Archives
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A Position of Strength

• Superb academic resources and facilities
• Strong financial resources
• Long history of balanced budgets
• Investment in faculty and staff
• Engaged Board of Trustees
• Remarkable alumnae
• Record-breaking class
• Five-College Consortium
• The Smith Design for Learning

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Cost Structures in Higher Education

• People-intensive enterprise
• Sticker price vs. actual cost
• Endowment subsidy no one pays full cost
• Importance of financial aid

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Cost vs. Price vs. Amount Paid
Cost of Education 68,000
Sticker Price 48,000
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Financial Aid Discount Rate
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Endowment Market Value
As of June 30
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Sources of Operating Revenue
2007-08
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Operating Expenses
2007-08
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Budget Reduction Guiding Principles

• Smith needs to be on the crest of the wave,
• not under the water.
• - Cornelia Mendenhall Small 66
• Board of Trustees Chair
• Maintain Smiths academic excellence
• Protect financial aid
• Securing the colleges financial future

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Main Budget Planning Areas

• Employee compensation
• Administrative, academic and student support
• Facilities and utilities
• Information technology and libraries
• Study abroad
• Student-to-faculty ratio
• Revenue enhancement

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Main Budget Planning Areas

• Employee compensation
• No salary increases in 2009-10
• Raises only for lower-earning employees in
  2010-11
• Control costs of benefits
•  

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Main Budget Planning Areas

• Employee compensation
• Administrative, academic and student support
• Communicate electronically as feasible
• Increase Five College collaboration public
  safety, health services, career development
• Streamline operations

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Main Budget Planning Areas

• Employee compensation
• Administrative, academic and student support
• Facilities and utilities
• Reduce space use
• Fund energy conservation projects

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Main Budget Planning Areas

• Employee compensation
• Administrative, academic and student support
• Facilities and utilities
• Information technology and libraries
• Increase Five College collaboration
• Reduce library acquisitions budget

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Main Budget Planning Areas

• Employee compensation
• Administrative, academic and student support
• Facilities and utilities
• Information technology and libraries
• Study abroad
• Control costs of non-Smith programs
• Reduce operating expenses for Smiths Junior Year
  Abroad programs

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Main Budget Planning Areas

• Employee compensation
• Administrative, academic and student support
• Facilities and utilities
• Information technology and libraries
• Study abroad
• Student-to-faculty ratio (101)
• Realize savings over time as faculty retire
• Determine strategic growth areas of curriculum

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Main Budget Planning Areas

• Employee compensation
• Administrative, academic and student support
• Facilities and utilities
• Information technology and libraries
• Study abroad
• Student-to-faculty ratio (101)
• Revenue enhancement
• Post- and pre-baccalaureate programs
• Professional/executive development

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Foundations for Smiths Future

• Global leadership focus
• Financial aid
• Comprehensive campaign

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How You Can Help

• Stay informed about Smith today
• Smith Alumnae Quarterly
• AASC e-news
• The Grécourt Gate www.smith.edu/gate
• Facebook, Twitter
• www.smith.edu/president/financial

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How You Can Help

• Be an ambassador for Smith
• Continue to support The Smith Fund
• www.smith.edu/thefund

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Your Questions

• Has the financial crisis affected Smiths ability
  to hire more professors, especially in
  non-science fields?
• Are the results of recent green initiatives
  helping to reduce annual operating expenses?

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Your Questions

• How will maintenance of campus buildings be
  affected, in light of the budget reductions?
• Is Smith able to guarantee that all students
  graduate without debt?

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Your Questions

• Will Smiths support of international students
  continue even as the college tightens its budget?
• What are the currentand long-termeffects of
  Smiths financial issues on class size and
  faculty retention and hiring?
• Send additional questions to president_at_smith.edu

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