Every fall President Thomas convenes the faculty for a conversation about how we are doing and where we are going--SAT scores of incoming freshman, fundraising efforts, that sort of thing. This year, in light of the economic situation, much of the conversation was focused on that. Some points:
1. Like everyone else, our endowment has taken a hit as investments declined in value.
2. Donations to the university have similarly dropped, though from much improved position last year.
3. We have a larger class this year than expected--higher than normal, when we were planning for a smaller class. However, the class is also more dependent on university financial aid--so more students has not meant a gain in revenue.
The long-term question will be how we operate in lean times, especially if these conditions continue over the course of several years. Many state universities have responded to the economy with sometimes dramatic budget cuts; see for example, the comments by University of Washington President Emmert on his blog. How do we shepherd our resources without undercutting our teaching and weakening our presence in the market? Questions yet to be answered.
PS One thing I find interesting on the UW pres blog is the suggestion that full professors take a pay freeze or gift part of their salary back to the university. That could be directed toward financial aid, while not undercutting junior faculty whose pay is lower. Since I'm full faculty, I can get away with saying this!
