Bigger classes, higher tuition, major budget cuts

The Board of Trustees recently met for their first board meeting of the year, and the news that emerged was not good.

Due to the economic downturn, the University's endowment has lost over $120 million... and if you remember, Wesleyan's endowment isn't all that big, compared to our "peer institutions."

A student in the know writes:

Wesleyan's endowment is down 20% over the last 4 months, and there will be major repercussions for the University's budget over the next few years—a $15.5 million deficit each year.

The trustees are considering a proposal from the administration that would deal with the problem by increasing class size by 30 for the next four years. There would also be major cuts across all the departments, a one-year salary freeze for staff and faculty, and a slightly larger than normal increase to the cost of tuition. No faculty positions or departments would be eliminated under this plan.

Students should be particularly aware of the ramifications of the first and last strategies being proposed. By increasing class size over the course of the next four years, if we reach our target admission levels, we'll see around 120 more students on campus—making residential space even tighter (meaning triples for many more freshmen, and a lack of class-appropriate housing in general), leading to longer lines at dining venues, and possibly causing class sizes to swell. By tacking on an additional increase to tuition, the University would raise your bill next year by 5.9%, a bit more than the standard 5% annual increase.

The future is always hard to predict, but current projections, assuming a 5% year-over-year return on the endowment, put us back at our pre-downturn total in 2013. So, in a nutshell, current predictions show that it'll take us five years to get back to where we were four months ago.

The Board of Trustees meets again in February—unless they decide to call a meeting sooner. It seems fairly certain that a quick reversal of fortunes isn't on the horizon, and of course, there's no guarantee that further erosion of the endowment won't occur. By February, we'll see if even more restrictive measures are needed to secure the financial stability of the University.

Help Fund Wesleyan With Just a Click

Teague Hopkins '06 informs us that due to Wesleyan's recent shrinking of the endowment, StillIndie.Com is helping Wesleyan raise money through Amazon. How does it work? Still Indie writes,

When you use these links, or this search box, to purchase qualifying items from Amazon, we receive a small referral fee. This fee is higher if more people use these links and search box, so tell your friends.

So go to the site and give Wes a click!

Roth addresses economy, posts sexy photo

This morning, President Roth released a "Community Update" about the state of the economy, and its effects on Wesleyan:

[Wesleyan's response to the financial turmoil] will include some serious budget cuts, delays in major facilities construction, and a close look at our priorities for the future. All of us will be asked to make sacrifices.

Following up on that, Roth has posted a new blog entry with some more specific ways in which the troubled economy will alter life around campus, and what the University intends to prioritize as we continue further into this grim economic situation:

... there will be cuts in the Wesleyan budget, but, as I said in my last post, I will do my best to protect teaching, research and the student experience from the impact of our cost cutting measures. [...] We will continue to offer our community the very best liberal arts education, but we must do so in a more cost effective way. We must delay for some years our major facilities projects, like the Molecular and Life Sciences Building, and we are looking at every department at the university for budget savings.

What will be the University's priorities going forward? Writes Roth:

• Maintaining a robust financial aid program
• Hiring and retaining faculty
• Continuing the internationalization of campus
• Enhancing the student experience, esp. for frosh and seniors
• Implementing the College of the Environment

Plus, Roth has also changed the self-photo he uses on the blog. Check it out. Even as a straight guy, I have to admit it's pretty flattering. Heh.

Wesleyan's Shrinking Endowment

Wesleyan's endowment has shrunk 3.9% in the 2008 fiscal year, declining from the $700 million range to the $600 million range - a major change from last year's 15% growth. Expected annual growth is usually projected at 9% every year, and it's not entirely clear what accounts for this decline - the WSA is releasing a report this week.

What's even more unclear is how the economy's recent turmoil will affect the figures in Fiscal Year 2009 - FY 2008 ended in June, before everyone starting freaking out on Wall Street.

So much for President Roth's plan to double the size of our endowment - especially in this economy, it's not looking so good.

Argus: Endowment shrinks by 3.9 percent