By Charles M. Edmondson, Ph.D.
President, Alfred University
We have all read the headlines about colleges and universities facing difficult choices because of declining endowment income, reduced state budgets and challenging fund raising. Alfred University is experiencing all of the same pressures. While we will feel these pressures in many ways, my first concern is for our students whose families are facing either job losses or reduced income. We can do nothing to change those circumstances; they are beyond Alfred’s ability to manage.
While I don’t want to downplay the effects of the national economy on Alfred University, I want to assure you that the University is in a solid financial position, able to manage the turmoil we are all experiencing. I want to emphasize, however, that being able to cope with the current situation will require taking new measures to both decrease costs and increase revenues.
First, Alfred University, like all of higher education, will suffer the ill effects of the stock market collapse on our endowment. We have sustained losses in the market, as nearly everyone has, but in this instance, it’s better not to be Harvard, Stanford or any one of the many other institutions that relies heavily on its income from endowments to cover operating costs. True, we do budget income from the endowment, but it represents only 1.5 percent of our revenues even when our investments are doing well.
Second, because of a unique relationship with the State University of New York, which contracts with Alfred University to operate the New York State College of Ceramics, our budget reflects considerable pressure from a reduction in the state allocation. This year, we are seeing a cut of about 10 percent in what we receive from New York State. Since a significant portion of the state allocation reimburses the University for services to students in the statutory unit, the effects of this reduction are felt throughout the institution. There is also a real possibility that the State will find it necessary to take back allocations during the middle of the coming year, so our losses of state funds may actually prove to be worse than they appear at the moment.
Many other institutions of higher education are laying off staff, imposing hiring freezes, cutting programs and putting construction projects on hold. While I cannot rule out some of those measures in the future, for now I do not anticipate lay-offs at Alfred, nor do I anticipate eliminating any programs. We are, in fact, going ahead with 12 faculty hires for positions critical to maintaining the quality of education we want to provide our students. We have two construction projects – the theater at the Miller Performing Arts Center and Ann’s House, a 48-bed residence hall – under way. It makes no sense to stop them this close to completion. Ann’s House is expected to welcome its first residents this fall, and the new theater will open next year.
Let me emphasize again: My biggest concern is for our students, who are a talented, enthusiastic and committed group of young adults. I marvel when I read the resumes of this year’s recipients of our Marlin Miller Outstanding Senior Awards, Callie Rimmel and Nick Garofoli. Both are earning their BFA degrees from the School of Art & Design in May, and both are involved in a wide range of activities across campus and in the community. I am impressed with the level of scholarship demonstrated in our annual Undergraduate Research Forum. I take great pleasure in seeing a new class of students inducted in Phi Beta Kappa, Tau Beta Pi and other national honor societies. And I worry how many of these students, and others like them, will be able to remain at Alfred University.
Our students are facing so many economic pressures now, more than ever before. We began to see the depths of the problem at the beginning of the second semester, when a larger-than-anticipated number of students withdrew. Some told us it was for financial reasons; others simply did not return, and we learned too late it was because of changed family circumstances. As you know from your own experiences at Alfred, we have many students from less-than-privileged backgrounds, those for whom higher education, not just at Alfred, is a real sacrifice for them and for their families. All the cost-cutting and budget management measures we employ are aimed at one thing: Making as much financial aid as possible available to students who otherwise might not be able to stay in school.
Tags: Alfred University, Charles M. Edmondson, financial aid
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