Budget Update

President Barnes has committed to keep the Bethel community informed of the university's economic situation.

“While we hear and read about the dire economic circumstances every day, all things considered, I continue to trust and believe that we are faring reasonably well in these uncertain times,” explained Barnes.

+ Senior Vice President Kathleen Nelson estimates that Bethel will finish this fiscal year with balanced revenues and expenses.

+ Registration for next fall’s student housing is encouraging, consistent with last fall.

+ Fall deposits for traditional-age College of Arts & Sciences (CAS) students are trailing last year, as they are across all of higher education. We continue to assume a fall enrollment of 2,730 students for CAS. That estimate represents 40 fewer students than original baseline assumptions.

+ The financial aid office continues to work hard and respond to families whose incomes have been affected due to a job loss situation.

As April gets under way, administrators are finalizing a budget for the 2009-10 fiscal year and continue to work towards the same approximate $7 million challenge President Barnes shared with the Bethel community in February. The changes made thus far—a salary freeze, careful evaluation of new or vacant position requests, and postponing much of the retrofit and other projects—will save approximately $3 million in next year’s budget.

“I’m thankful to the Bethel employee community for their gracious response to the changes we’ve made so far, and for their partnership and creativity in approaching these budget shortfalls,” said Barnes. “But balancing the budget will not be without some painful decisions.” 

“Just like the choices families are making every day when balancing their checkbooks, our goal is to make necessary cuts while preserving the areas that are a must. For us, those musts are excellent academics, enrolling and retaining students, maintaining necessary student services, keeping up-to-date on technology needs, and raising the capital that will support us in the future,” explained Barnes.

The fiscal year 2009-10 budget must be completed and presented to the Board of Trustees at their meetings on April 30 and May 1. The president’s executive team and department leaders are working to identify approximately $3 million of additional reductions across the university. This process will include examination of programs, both curricular and co-curricular, as well as other university operations, for cost savings. This effort to balance the budget is part of an ongoing process to evaluate the organization, develop a sustainable economic model, and improve Bethel's ability to invest in strategic priorities.

As part of this process, faculty and staff may hear or be involved in some of these discussions and decisions. Some decisions have been made and will be implemented immediately, such as canceling sections of classes for efficiency and discontinuing use of a leased art studio and gallery space.

“As best as we are able, we will communicate these decisions promptly,” said Barnes. “We also anticipate another round of opportunities for employees to ask clarifying questions as we make decisions and begin to implement them.”

If you have questions throughout this process, you are encouraged to discuss them with your supervisor. If needed, other questions can be referred to Rich Sherry, executive assistant to the president.