As President Patrick White enters the fourth year of his presidency, he has returned to the theme of his inauguration, “In Dreams Begin Responsibility.” Coming out of a difficult school year for the entire Wabash community, White’s mantra reflects his own balancing act.
The President must lead campus improvement efforts while dealing with the financial realities of the economic downturn. He must unite a campus still recovering from a tumultuous year - all while keeping morale high.
It was only a year ago the Board of Trustees approved the Strategic Master Plan, a blueprint for expanding and enhancing key aspects of campus facilities, operations, and personnel. However, today the college has been forced to cut back.
“We’ve cut our operating budget by over ten percent, and we will probably continue to do that,” White said. “Also, we continue to make adjustments on students studying abroad. We are going to look at how we charge for that.
We have initiated an opportunity for early retirement [for] faculty and staff over the age of 55. After that is done, we will look at our staffing needs so that we can see what additional staffing reductions we may need to make over the next couple of years.”
The cuts are the result of a nearly $130 million drop in the College’s endowment, from $375 million to $250 million. The majority of the college’s operating budget – 52 percent - is typically drawn from the endowment. Now the operating budget includes 52 percent of a much small number, leading administration officials to cut expenses to make up the difference.
Some vacated staff positions won’t be filled. Others have been reorganized. Early retirements will allow the college to shave off some long-term personnel costs, which account for more than half of the college’s yearly expenses. And planning to renovate or rebuild independent housing units or a new student center has been postponed indefinitely.
“With the cuts in expenditures we have made now and anticipate during this year, we are projecting a balanced budget for 2009-2010. During the year we will have to assess what measureswe will need to take going forward.
Since the College draws from the endowment based on a 12-quarter rolling average, the negative financial impact has been staggered, White said, giving the college some time to plan. The down side is that the 12-quarter rolling average would also stagger the benefits of an economic recovery. So as the economy begins to grow again, Wabash’s could still be feeling the brunt of the recession.
Going forward, administration officials are trying to change the way the college does business so it won’t be so affected by changes in the endowment draw.
“That’s the good news and the bad news of the 12 quarter rolling average,” White said, “is that it will take us time to recoup. So we’re going to have to find a new way to do business and think about all the things that will go into that business model, including being more careful about our costs and expenses on faculty salary [and] foreign study.”
As it relates to campus life, the administration sees progress on a number of fronts, from campus safety and security to students embracing the responsibility implicit in the Gentleman’s Rule. Administration officials are working with Director of Safety and Security Richard Woods to promote a more comprehensive understanding of campus security; one that extends beyond locking doors. Woods has been charged with retraining security staff to help. College officials may also be looking to hire additional security personnel.
White said his administration plans to install some type of card access system, but key decisions about the details have yet to be made. “I’m pretty sure we’re close to that,” White said. “I don’t know if we’re going to do it in all buildings at once, certainly for the residence halls. Almost everyone agrees that’s a good idea.”
White refused to say whether the College still faces the prospect of being sued by the Smith family, but he accepted responsibility for the decision to close Delta Tau Delta, now known as Cole Hall.
He and other administration officials made rounds to all the living units last semester to talk about the Gentleman’s Rule after the fallout from the Delt decision. He said students have responded constructively through the W.A.R. Council, H.E.L.P. sessions, and other organized talks.
Going into the new school year, White is pumped. He even suggested college officials are planning a campaign push to build funding for student financial aid, faculty support, and foreign study, among other things.
“I’ve been through a bit in my three years, but I still think that we have wonderful things to accomplish together as a college,” White said with resolve. “I’m never down about Wabash. These are amazing students who have been transformed by this place. That transformation is ongoing. Let’s keep our eyes on the prize of Wabash moving forward.”
