The $5 million budget shortfall for fiscal year 1997 predicted two years ago by College Treasurer Lyn Hutton has been averted, due to recent fund-raising campaigns and the cutting of some planned programs, Associate College Treasurer Win Johnson said.
It will cost an estimated $217 million to operate the College in fiscal year 1997, 4.5 percent more than in 1996. The growth of the College's expenses is outpacing inflation, due in part to rising costs for benefits, salaries, financial aid, affirmative action programs, child care for employees and legal fees.
But despite the increase in costs, the Treasurer's office will retain a small surplus for 1997 instead of the anticipated $5 million shortfall.
The College chose not to fund certain requests from departments, such as the Athletic Department's 1995 request for money to explore gender equity in sports. To fund the investigation, which is required under federal Title IX regulations, the Athletic department had to reallocate internal funds.
To avoid the shortfall, the College eliminated "things that when we got right down to it, we couldn't afford to do," Johnson said.
He said balancing the budget will not be a problem in the immediate future, but there could be a shortfall in the year 2000.
"By then we are expecting new expenses without offsetting revenues," he said. Johnson said a shortfall could be driven primarily by the demand for the upkeep of facilities.
The growth rate for 1997 is lower than the six-year average of 5 percent.
Although the current rate of growth is higher than inflation, there are many programs administrators are not willing to cut. To bring the growth rate in line with inflation "would mean this would be a much poorer place," Johnson said.
But Johnson predicted that the Board of Trustees will take actions to slow the rate of growth in coming years.
The College had planned to spend only about $186 million in fiscal year 1997, but unanticipated expenses added another $31 million in spending, due to sponsored activities and auxiliary enterprises. For example, the College will absorb Dartmouth Dining Service's $600,000 shortfall for 1997.
To calculate each year's budget, the Treasurer's Office increments current funding requirements in each department.
Budget priorities are set according to five principles established by the College president -- maintaining need-blind admissions, competitive pay for the faculty, tenure-track faculty positions, academic programs and physical facilities.
Johnson said he doubts these principles will change substantially in the short run. He does, however, foresee some shifting of priorities in the long run. "There are all sorts of issues, like the media and technology boom" to be addressed, he said.
Johnson said the yearly budgeting process is a struggle to reconcile incoming funds with expectations of continual improvement.
"There's nobody on this campus that wants less money, including students," he said.
