2008 Woodie Awards
Your Turn: Letters to the Editor
Issue date: 4/21/04 Section: Opinion
Annual Budget
To the Editor:
Your recent article "Endowment Dropped, Salary Concerns Raised" in the April 7th issue goes a long way in clarifying how the annual college budget process works. As one of the persons interviewed for this article, I was very pleased at the article's accuracy on this complex subject.
I read my copy of the article on the internet and was struck by the particular relevance of the sidebar on the page which surveyed students on their attitudes toward the recent tuition increase. More than anything, this made me realize that we must all understand that faculty and staff salaries do not move in a vacuum but rather on the basis of what happens with the rest of the budget.
Goucher's budget must be balanced, i.e. expense may not be greater than income. Ultimate responsibility for the financial health of Goucher rests with its Board of Trustees. They have the legal fiduciary responsibility to insure that the assets of the college are not diminished by annual operating results and that over time those assets are preserved to work for the future growth and strength of this institution. This above all is the Board's primary responsibility and takes precedence over any other policy goals - which are just that: goals, not pledges, not undertakings or binding commitments, but intentions which can only be carried out once this primary responsibility is met.
With that in mind, it is necessary to understand that budgeting is a kind of two-sided zero sum game. Salaries alone normally represent almost 50% of Goucher's annual budgeted expense. It is the major single item. Since total expense must not be greater than total income, salaries may not increase unless income increases or other expense decreases or some combination of the two. As you are all only too well aware, income only increases when tuition rises, endowment 'income' rises, or gifts to the operating fund rise. (I am ignoring increases in the student body size since that tends to increase all other expenses as well). If none of these income events occur, salaries could only increase if other items of expense decreased i.e. light heat, and water, building maintenance etc. As you can imagine, these costs are rather fixed from year to year.
The Board reluctantly increases tuition, but it does so because it wants to preserve salary competitiveness and it needs to meet rising costs if it wants to maintain program quality. More than that, it always wants to fund the administration's plans to improve program quality. Thus, every year becomes a difficult balancing act and major discontinuities such as a withdrawal of significant state funding or a sharp drop in the securities markets put extreme strain on these objectives. In the short run, tuition is the only place to turn if existing standards are to be met. Raising money for the college is a major occupation of the President, but "development" has a medium-to long-term payout. The board already moderates the effect of securities market volatility by using a three-year rolling average when calculating the 'income' from endowment which is taken annually into operating income. But of course this moderates in both directions.
This means that in any year of significant income or expense pressure, tuition is under strong pressure to take up the slack. The board greatly regrets the pressure that tuition increases put on existing students and works hard to limit these.
I have been a trustee of Goucher during two extended periods since 1982, and I can assure you that Goucher is a stronger college financially today than at any other time during this period, and the outlook is good to keep the college that way. But the external environment will always present some challenges to the annual budget process and meeting those challenges involves a difficult give-and-take if we are to move Goucher forward.
Ron Geesey,
Treasurer of the Board of Trustees and Chairman of the Budget Task Force
* * *
Remembering Tom Turner
To the Editor:
I am a Goucher College graduate from the Class of 2003 and receive online versions of The Quindecim. Being a former staff writer, I am always very curious about the various important topics that weigh heavily on students' minds. I was extremely shocked and heart-broken when I recently read the news about Tom Turner as well as the fond memories of him that students shared when they posted their comments.
Reading what the students wrote brought back my warmest recollections of him from last year and revealed the true charm that I always associated with Tom from the moment when I first got to know him from helping out at the Fall 2002 Orientation. I felt in my heart that Tom's uniqueness, charisma, multiple talents, and bright smile made him appear to be one of the most vivacious, up-beat, mirthful, and high-spirited individuals on our campus. I was amazed and impressed by how cheerful, outgoing, and sociable he was around all of us.
I was also inspired by his intelligence, as well as his motivation to get actively involved in many different things, from school dances to Red Hot Blues to the time when we volunteered with senior citizens for the Nursing Friends community service project. I especially loved how he was able to use his vocal chords to make different types of instrumental sounds, from the trumpet to the drum beat in the background of A-Ha's song, "Take on Me" when Red Hot Blue sang it at one of their Spring 2003 performances. When it came to a capella music, Tom had that exquisite talent which is very difficult to find in most people.
I will really miss all the joy that Tom added to RHB's music. I am not quite sure how the group would be able to find another individual who possesses the same fine, exceptional singing qualities that Tom had.
I will also miss his ways of brightening everyone's day with his sense of humor and affection as well as confidence. Tom was a Freshman when I graduated and I only saw him on campus for one year, but I wish that I could have taken more time to get to know him better.
Tom had that optimistic nature and essence which drew many people towards him.
Although we were acquaintances and not best friends, I still remember feeling a connection to him when seeking good times for relaxation, comfort, and laughter.
It never crossed my mind that Tom had extremely negative inner feelings that would eventually lead to this tragedy, and I am having a very hard time coping with the fact that everything ended like this. Why did this have to happen?
Even though I really miss him, his memories will always live on. If his spirit can see us and hear this message, I want him to know that he was loved and appreciated by everyone in so many ways and will always be loved and thought of.
Sincerely,
Hilary Lee Fergenson, '03
To the Editor:
Your recent article "Endowment Dropped, Salary Concerns Raised" in the April 7th issue goes a long way in clarifying how the annual college budget process works. As one of the persons interviewed for this article, I was very pleased at the article's accuracy on this complex subject.
I read my copy of the article on the internet and was struck by the particular relevance of the sidebar on the page which surveyed students on their attitudes toward the recent tuition increase. More than anything, this made me realize that we must all understand that faculty and staff salaries do not move in a vacuum but rather on the basis of what happens with the rest of the budget.
Goucher's budget must be balanced, i.e. expense may not be greater than income. Ultimate responsibility for the financial health of Goucher rests with its Board of Trustees. They have the legal fiduciary responsibility to insure that the assets of the college are not diminished by annual operating results and that over time those assets are preserved to work for the future growth and strength of this institution. This above all is the Board's primary responsibility and takes precedence over any other policy goals - which are just that: goals, not pledges, not undertakings or binding commitments, but intentions which can only be carried out once this primary responsibility is met.
With that in mind, it is necessary to understand that budgeting is a kind of two-sided zero sum game. Salaries alone normally represent almost 50% of Goucher's annual budgeted expense. It is the major single item. Since total expense must not be greater than total income, salaries may not increase unless income increases or other expense decreases or some combination of the two. As you are all only too well aware, income only increases when tuition rises, endowment 'income' rises, or gifts to the operating fund rise. (I am ignoring increases in the student body size since that tends to increase all other expenses as well). If none of these income events occur, salaries could only increase if other items of expense decreased i.e. light heat, and water, building maintenance etc. As you can imagine, these costs are rather fixed from year to year.
The Board reluctantly increases tuition, but it does so because it wants to preserve salary competitiveness and it needs to meet rising costs if it wants to maintain program quality. More than that, it always wants to fund the administration's plans to improve program quality. Thus, every year becomes a difficult balancing act and major discontinuities such as a withdrawal of significant state funding or a sharp drop in the securities markets put extreme strain on these objectives. In the short run, tuition is the only place to turn if existing standards are to be met. Raising money for the college is a major occupation of the President, but "development" has a medium-to long-term payout. The board already moderates the effect of securities market volatility by using a three-year rolling average when calculating the 'income' from endowment which is taken annually into operating income. But of course this moderates in both directions.
This means that in any year of significant income or expense pressure, tuition is under strong pressure to take up the slack. The board greatly regrets the pressure that tuition increases put on existing students and works hard to limit these.
I have been a trustee of Goucher during two extended periods since 1982, and I can assure you that Goucher is a stronger college financially today than at any other time during this period, and the outlook is good to keep the college that way. But the external environment will always present some challenges to the annual budget process and meeting those challenges involves a difficult give-and-take if we are to move Goucher forward.
Ron Geesey,
Treasurer of the Board of Trustees and Chairman of the Budget Task Force
* * *
Remembering Tom Turner
To the Editor:
I am a Goucher College graduate from the Class of 2003 and receive online versions of The Quindecim. Being a former staff writer, I am always very curious about the various important topics that weigh heavily on students' minds. I was extremely shocked and heart-broken when I recently read the news about Tom Turner as well as the fond memories of him that students shared when they posted their comments.
Reading what the students wrote brought back my warmest recollections of him from last year and revealed the true charm that I always associated with Tom from the moment when I first got to know him from helping out at the Fall 2002 Orientation. I felt in my heart that Tom's uniqueness, charisma, multiple talents, and bright smile made him appear to be one of the most vivacious, up-beat, mirthful, and high-spirited individuals on our campus. I was amazed and impressed by how cheerful, outgoing, and sociable he was around all of us.
I was also inspired by his intelligence, as well as his motivation to get actively involved in many different things, from school dances to Red Hot Blues to the time when we volunteered with senior citizens for the Nursing Friends community service project. I especially loved how he was able to use his vocal chords to make different types of instrumental sounds, from the trumpet to the drum beat in the background of A-Ha's song, "Take on Me" when Red Hot Blue sang it at one of their Spring 2003 performances. When it came to a capella music, Tom had that exquisite talent which is very difficult to find in most people.
I will really miss all the joy that Tom added to RHB's music. I am not quite sure how the group would be able to find another individual who possesses the same fine, exceptional singing qualities that Tom had.
I will also miss his ways of brightening everyone's day with his sense of humor and affection as well as confidence. Tom was a Freshman when I graduated and I only saw him on campus for one year, but I wish that I could have taken more time to get to know him better.
Tom had that optimistic nature and essence which drew many people towards him.
Although we were acquaintances and not best friends, I still remember feeling a connection to him when seeking good times for relaxation, comfort, and laughter.
It never crossed my mind that Tom had extremely negative inner feelings that would eventually lead to this tragedy, and I am having a very hard time coping with the fact that everything ended like this. Why did this have to happen?
Even though I really miss him, his memories will always live on. If his spirit can see us and hear this message, I want him to know that he was loved and appreciated by everyone in so many ways and will always be loved and thought of.
Sincerely,
Hilary Lee Fergenson, '03
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