Associate Professor of Accounting Raymond Johnson greeted those that walked into the Jan. 19 budget meeting. “Help yourself to food and drinks,” he said. “It’s in the budget.” The first budget meeting of the 2004-05 year happened Nov. 4, 2004, when aspects of the budget were laid out. The Jan. 19 meeting was to discuss what has transpired since.

“This meeting is to show how the budget process does or does not dovetail with the recently approved strategic plan,” said Johnson.

Johnson began his presentation emphasizing the availability of the budget information. “All Guilford community members are aware of the budget, nothing is a secret.” Johnson then led the audience of students, faculty and staff through a PowerPoint presentation outlining the proposed budget and process through which it is decided.

The budget committee will now attempt to reach consensus on the 2005-06 budget. The committee will then recommend the budget to President Kent Chabotar. Chabotar in turn recommends the budget to the Board of Trustees for final approval the third week in February.

The proposed 2005-06 capital budget is $4.4 million.

“The bottom line,” said Johnson, “is to reach a balanced budget and have a drop in endowment reliance.” The goal for financial equilibrium is 2006.

“The budget has successfully absorbed the revenues and costs of the strategic plan,” said the President.

By the proposed budget, traditional students will experience a 5.9% increase in tuition. Current tuition, including room and board, is $26,600, rising to $28,170. This would be an additional 1.9% increase above the 4% increase proposed in the Strategic Long Range Plan.

Center for Continuing Education (CCE) student tuition will increase from $229 to $239 per-credit hour.

Upon the mention of this statistic sophomore Adam Waxman immediately questioned the gap between traditional student tuition increase and CCE student tuition increase.

“(The) CCE market is much more competitive,” Johnson replied.

Guilford must keep prices lower than the neighboring colleges and universities to keep CCE students. Johnson explained that in the new budget the financial aid plan is larger and restructured.

Anthony Gurley, Associate Dean of Enrollment addressed the financial aid restructuring, emphasizing that financial aid available to students is larger in the new budget.

“Very few students pay the advertised ‘sticker price’ for tuition at Guilford College since the discount rate averages 42% in institutional grant aid alone, not counting other sources of grants and loans,” Chabotar said. The new financial aid plan allows for this to continue.

“The proposed tuition rise of 5.9% for traditional students will be at or slightly below the expected national average increase for private schools of 6% and way below the 10%-14% average increases in public universities over the last five years,” said Chabotar.

“The strategy is to keep Guilford tuition in the middle of the pack,” said Johnson.

The proposed tuition increase will allow for several budgetary changes to occur, including a possible increase in salary for college employees.

“The goal is for faculty salaries to reach the fiftieth percentile of the American Association of University Professors for private and independent schools (AAUP IIB) by 2010,” said Johnson.

This would call for a 7.2% yearly increase in tuition. More recent figures show that the salary will increase slower, to reach the forty-fifth percentile in 2010. This increase calls for a 3.5% yearly tuition increase.

“The average yearly salary increases for both faculty and staff is under review and will be adjusted as soon as data is available,” said Johnson.

One strategy of reaching a balanced budget includes adhering to the May 1 deadline of deposits for incoming students. In the past Guilford has continued to accept deposits after this deadline.

“Last year we made the class by May first and we continued to accept students,” said Vice President for Enrollment and Campus Life, Randy Doss. The goal this year is to have 380 incoming students by May 1.

“It is agreed that we do not want to go over 380,” said Doss.

At the end of the meeting, sophomore Adam Waxman said, “These meetings are hard, decisions have already been made and there is little traditional students can do to impact it.”

“There were fewer students in attendance than I had hoped, but they had some very good questions about the budget,” said junior Dana Di Maio. “The explanation addressed many of the hot-button issues here, like increases in tuition for CCE students versus. traditional students, and how the college would be able to balance the budget with minimal negative impact on students, faculty, and staff.