Dartmouth looks to plug financial hole
By MELANIE PLENDA
Union Leader Correspondent
Wednesday, Oct. 28, 2009 Share on Facebook
HANOVER – Dartmouth College officials are working on a three-prong plan that could include layoffs to address the school's massive financial shortfalls.
Speaking recently to a packed house of faculty, college President James Yong Kim said the college is kicking off the process of reducing expenses, increasing philanthropic giving to Dartmouth, and pursuing new initiatives to produce more revenue.
The Valley News reported that in an interview after the speech, Kim said layoffs were possible.
"Would I prefer not to fire anybody? Sure, I'd prefer that. Is there a way we can go forward and not fire anybody? I don't know. . . . I doubt it," Kim told The Valley News. "We'll do our best to try. But I think the size of the gap is much bigger than anyone ever thought."
Kim was unavailable for comment yesterday. He said in an e-mail to the Dartmouth community dated Oct. 9 the college was short $50 million in operating revenue stemming from $835 million in endowment losses.
"Simply said, our financials are out of balance," Kim said in his speech Monday. "Our expenses are greater than our revenues. . . . To get to the punch line -- every scenario we run has a deficit. And the deficits grow each year, as expenses continue to increase and revenues do not keep up--even with positive endowment returns."
But Roland Adams, director of communications for Dartmouth College said any budget cuts, including layoffs, will not happen anytime soon.
"(Layoffs) are not imminent," he said. "They are at the outset of a process, not the end."
This is a similar process to the one launched last fall that resulted two rounds of layoffs. In all, 72 people were laid off with 24 hired back to new positions at the college.
However, Adams said, it's too soon to say whether this go-round with the college's financials will have the same outcome.
Officials plan to hold meetings and forums on the budget crunch over the next several months. And talks between faculty committees and the institution-wide budget committee are under way.
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http://thedartmouth.com/2009/10/12/news/endowment says the endowment for Dartmouth is now 2.8 billion dollars.
Bloomberg has an article from February 2009 discussing how Harvard and Yale have lost money in their endowments. I found the article by doing a search on Dartmouth endowment.
A lot of college endowments may decrease a lot more if the economy gets worse.
Americans and foreigners would be more likely to invest in our country and create jobs in our country if the federal government and state governments stop taxing capital gains, interest from savings accounts, dividends, and estates. Businesses especially small businesses need capital to stay in business and pay their employees.
Americans and foreigners would be more likely to invest in our country if the highest federal income tax on people and businesses is NOT greater than 15 percent. People should keep in mind that the higher taxes are on businesses the worse that endowments of colleges are likely to do. When endowments do badly, colleges are more likely to increase tuitions and reduce scholarships.
- Ken Stremsky, Manchester, NH
Why not admit more smart kids whose parents can afford to pay the tuition
- G. Chrys, OAKLAND CA
Here we go again! A College that was once held in high esteem is now at the bottom of the heap. Why should workers who are loyal to Dartmouth suffer because of incompetance of those higher up? If I was a Dartmouth Alum, I wouldn't donate a dime to this place. It's a real shame and education suffers. My
Grandfather, Malcolm A. MacDonald was killed in the Carpenter Gallery when Baker Library was being built in October, 1928. Did they give any financial support to my Grandmother to raise my Dad and his Brother? Not on your life! The Dartmouth I know, is a joke today and my family has lived in Hanover since 1924. How much lower can Dartmouth go?
- James A. MacDonald, New York City
With the tuition and other related costs to attend Dartmouth, how can they be 50 million short????
George Bush called that Fuzzy Math
Ironic how Business Colleges don't operate like a Business. Business School is almost an oxymoron
- Harry, Atkinson
How in the world can an IVY LEAGUE School be unable to balance their budget...Especially with 2010 tuition at $49,974 per year!?!?
- BP, Manchester NH
Hey here's a wild thought, raise tuition! We all know it's coming so don't sugar coat it. College is already overpriced and gives years of oppressive debt to kids. Why not make it easier to keep staff you probably don't need and hit kids harder? We all know you will.
- Steve, Derry
Reevaluate Tenure. Get rid of the dead weight and non productive types.
- Bob, Salem