FINANCIAL SUSTAINABILITY:
CREATING THE FINANCIAL ARCHITECTURE FOR SUCCESS
Jon McGee, Vice President for Planning and Public Affairs, College of Saint
Benedict and Saint John’s University, Moderator
Kent John Chabotar, President, Guilford College
Audience Discussion
Michael Fraher, director of financial aid, Vassar College, observed, “We have been
successful in our efforts to increase economic diversity among Vassar students, and are
now starting to cut into faculty raises. How realistic is this diversity as a sustainable goal?”
Chabotar replied, “The trade-off between financial aid and faculty salaries can’t be seen
as a zero-sum game. You have to make a choice to do one or the other over a limited
period of time, or to do some of each. Also, when was the last time the faculty was truly
made aware of the realities of the budget? You can never underestimate the ignorance of
people about how an institution is financed. A truly open budget process is important, so
that everyone can see how the trade-offs are made.”
Youlonda Copeland-Morgan, associate vice president, enrollment management, and
director of scholarships and student aid, Syracuse University, said, “We are all facing less
support from federal and state governments. Given that part of the ‘new normal’ is a
larger population of students coming from low-income backgrounds, it seems to me that
we need to expand state and federal investment in higher education. We need more
people like you in the legislative environment. How do we get presidents as a large
group to the Hill?”
Chabotar suggested four options:
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Work through state associations for private colleges
Make trustees aware of opportunities to lobby for higher education
Find role models in your state that you can point to, and
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Urge the associations to be more proactive in teaching presidents how to lobby
Jon McGee stated, “Fear, despair, optimism, and opportunism can all initiate action. The
approach you choose can influence the outcome. Which would you choose?” Chabotar
responded, “Fear and optimism. For example, legislators need to know what you do with
the programs that are already strong, and optimism will be a change for them!”
Mary San Agustin, director, financial aid, veterans, and scholarships, Palomar College,
indicated that her college was cautioned in the accreditation process because the faculty
would not sign on for measurement of outcomes, and that resource allocation issues were
part of the warning the college received as well. She believes enrollment and student
services professionals need to toot their own horns.
Chabotar added, “If you can show that assessment is key to becoming better and getting
more resources, that can inspire people, including the faculty. Also, we all need to be
specific about what we need money for. Bring it down to the actual people who need it:
the extent to which you can link staff to students is key when resources are allocated.”
McGee shared, “We closed an academic program which had only three majors out of 400
students. The program had one full-time faculty member. It took two years to close the
program and four years to teach it out. We saved nothing: we moved the faculty member
to another department, and it was just an emotional process. How do we deal with change
when many within our institutions do not see time the way we do?”
Chabotar said, “People in an institution need to see the picture clearly. Also, sometimes
there can be a non-zero-sum solution, such as not offering a major but keeping the
department. Faculty members need to be involved in the budget process and in making
cuts.”