Preliminary Assumptions for the 2011-2012 Operating Budget:
Tuition and Fees
 5% increase in comprehensive fee for 2011-2012 (total comprehensive fee of $40,650)
 The increase in fees as well as the assumed increase in enrollment is expected to produce
additional revenue of $780,000 (after applied financial aid).
Enrollment
 Total enrollment of 1,195 students for 2011-2012 (an increase of 7 students over 20102011)
 Retention rate of freshmen to sophomore of 82%
 New student enrollment of 375
Tuition Discount
 First year student tuition discount rate of 58.8% (down from 59.8% in 2010-2011)
 Overall tuition discount rate of 56.1% (up from 55.4% in 2010-2011)
Endowment support
 Spending from endowment will be calculated using 5% of the trailing 8-quarter average.
This is a reduction from 6% in 2010-2011.
 The amount of endowment support is expected to be $1.9 million, down from $2.5
million in 2010-2011. The reduction is due to the reduction in the trailing 8 quarter
average balance as well as the reduction in the rate of spending.
Gifts
 Unrestricted annual fund gifts are expected to grow by 5% to $2.1 million (compared to a
goal of $2.0 million in 2010-2011).
Expenses
 The model assumes an increase in salaries of 2.04% which would restore salaries to the
pre-cut levels. Total salary expense is approximately $13.6 million. A 1% increase is
therefore $136,000. A salary increase also requires an increased allocation for FICA
benefit and TIAA-CREF benefit. For a 1% increase in salary, an additional $16,200 is
added in benefit expense. Therefore a 2.04% increase in salaries requires approximately
$310,488 in additional resources.
 The model currently includes an increase in the College contribution to TIAA-CREF of
1%. A 1% increase in contribution requires approximately $130,000 of additional
resource.
 The model includes an increase in costs of foodservice. Meal costs are assumed to
increase 4.5% and the number of students on meal plans is assumed to increase by 8
students over 2010-2011. The total cost of the increase is $157,000.
 The model assumes average inflation of 1% for all non-salary and non-food expenses.
This includes a basket of expenses including energy costs, health care costs, travel,
printing, etc. The model assumes that all programs currently funded will continue to be
funded.
Document1

The College is adding a position in Information Technology to address issues associated
with the administrative software system. The current assumptions include adding two
positions in advancement to expand the reach with alumni. An additional half-time
position is recommended in student counseling to handle the number of students seeking
that service. There is a desire by students to have additional internet bandwidth and an
expansion of the Colleges services in that area is incorporated in the model at a cost of
$75,000/year.
Given current assumptions, including planned position expansions, the College would have an
operating shortfall in 2011-2012 of $375,000. Over the next few months, the short-term and
long-term assumptions will continue to be reviewed and refined and detailed operating budgets
will be compiled to arrive at a final balanced budget for 2011-2012 which will be presented for
approval by the Board in May.
Sensitivities:
Changes in assumptions to the model have the following impact on revenues and expenses:




One freshman student changes the bottom line by $14,627
One percentage point in freshman to sophomore retention changes the bottom line
by $52,970
A change in the freshman tuition discount rate of 1% changes the bottom line by
$117,500
The college has $9.3 million in debt subject to a variable rate of interest. The
interest rate assumed for the 2011-2012 year is 1.5%. If interest rates increase
1%, the increase in debt service cost would be $93,000.
Document1