The College expects to reduce its budget gap for fiscal year 2012 from $96 million to approximately $2 million through several plans to increase revenue and reduce costs, Kim said.
The College is currently on track to close the $54 million budget gap it faced for the 2011 fiscal year, Executive Vice President Steven Kadish said in an interview with The Dartmouth. Part of the College's increased revenue approximately $11.4 million will come from changes to the financial aid policy, Kim said. The College reinstated loans for families who earn more than $75,000 a year, The Dartmouth previously reported.
Gaps in the fiscal year 2012 budget were further closed after a $16.4 million in administrative reorganization and restructuring, a $15.1 million adjustment of benefits and compensation to employees, $8.7 million from new revenues and $15 million from other miscellaneous savings, according to Kim.
Folt discussed the strategic budget planning process, which she said College officials will use to evaluate areas in need of improvement. The planning process is an important component to improving the institution in the long run, she said.
"We are in the business of education and knowledge creation," Folt said. "The idea that you think is most important today in two years might not be the most important idea."
In response to a question submitted prior to the forum regarding changes in the benefits to employees, Kim said the administration was "put through a lot" by the financial crisis but may have "cut too much" in certain areas.
"We are very aware that we might need to go back and look at some decisions," he said.
Kim said the College will not consider "reducing the size of the faculty" or implementing "staff furloughs or a major layoff program" in its continued plans to reduce the budget. The administration will reexamine expenses, attempt to improve procurement and continue working toward increasing revenue to the College through tuition and the College Fund in order to close the remaining gap, Kim said.
The budget planning process which will take between 18 and 24 months will be led by a steering committee that will include Kim, Folt, Kadish, the heads of advancement and the deans of the all the schools, according to Folt. The process will also include a faculty advisory committee chaired by sociology professor Denise Anthony who, also works as the research director for the Dartmouth Institute for Security, Technology and Society, Folt said.
The College will soon launch a new senior executive advisory committee, which will be chaired by Dean of Admissions and Financial Aid Maria Laskaris and Vice Provost for Research Martin Wybourne. This committee will have a similar role to the faculty advisory committee in offering recommendations, insight and guidance throughout the planning process, Folt said.
Kadish said in an interview with The Dartmouth that the administration is not currently reevaluating the health care plan but remains open to hearing comments.
"We've been really trying to listen all the way," he said.
During the forum, Kim discussed the possibility of implementing new health and wellness programs for College employees. Some studies have shown that these programs, which help employees lead healthier lifestyles and make healthier choices, can reduce health care costs in the long run, he said.
Kadish said in the interview that this new program will not change the health care plan but will be an additional program to improve health among employees. Studies indicate that the returns on investing in these programs are higher than the costs of these programs within three or four years, Kadish said.
Kim said the administration decided not to implement equal cuts "across the board" to try to close the budget gap in the fiscal year 2011, as some other institutions have done. College officials instead examined exactly where the College was spending money and implemented reductions in a way that best met the needs of the College, according to Kim.
Kim said the College's policies in the College's Strategic Budget Reduction Investment Process which include changes to financial aid policy and employee benefits were similar to those implemented at peer institutions.
The new academic calendar under consideration by the faculty will not have a significant effect on staff, Kim said, adding that this is not intended to be a cost-saving measure.
Folt said that the new calendar would allow for the College to have a few more weeks to do various campus projects during the break.
