Recent Budget Adjustments to Change Campus Life Next Year

Last Friday, Houghton students received an email announcing housing and meal plan changes for the upcoming 2012-2013 school year. According to Vice President for Student Life Sharra Hynes, $35 million is Houghton's operating budget, and the College is cutting 7%, roughly $2.5 million, of it. Houghton has been looking for ways to generate additional total revenue and will do so in a variety of ways, changes to housing and meal plans being two of them.

Hynes, who recognizes that the email announcement has generated a "sort of buzz around campus," laid out the reasons behind the College's aforementioned budget adjustments during Wednesday night's Senate meeting.

Hynes first addressed the question, "Why are we having to make budget adjustments at all?" "What we're experiencing at Houghton right now is a bit of a national issue and a bit of a Houghton issue," she said. Hynes referred to the nation's economic downturn within the last few years and said, contrary to the beliefs of many, Houghton's situation is not based solely on that.

"Enrollment has been highly erratic in its nature," she said, and she does not know why. Hynes said the College has studied, analyzed, asked questions, and even brought in nationally-recognized consultants who do not have answers either. Hynes pointed to a bright spot at Houghton, though, and that is the College's 97% retention rate, which, according to her, is "a figure beyond comprehension."

Hynes added that the College is in its current financial state not only because of economic downturn and its erratic enrollment, but also because of its discount rate. College students rarely pay what is "on the price tag," she said, because of financial aid and scholarships, among other things. Several years ago, Houghton had a discount rate of about 20%, meaning students paid 20% less than its advertised cost. Now, Houghton has a discount rate of about 40%, as the College is giving more financial aid than it ever has before in order to keep up with competing colleges.

Another factor, according to Hynes, is that the class of 2012 is leaving in May. This year's graduating class, which came in with about 400 students, will leave the College with a "pretty big gap." The classes of 2013, 2014, and 2015 each have 350 students or less. Along with being large, the class of 2012 has the lowest discount rate, which means for the rest of the classes, the discount rate has increased and net tuition revenue per student has been impacted.

Hynes, who said the budget cuts have and will be felt in a variety of places, affecting personnel and things like benefits among other things, decided to address those which will most significantly impact students, beginning with the housing changes. Friday's email reads, "We will be taking the College Flats off-line for the 2012-2012 Academic Year and will determine student occupancy of the Flats on a year-to-year basis in the future." The College will save about $30,000 as a result of this shift in occupancy, which Hynes recognizes "doesn't seem like a whole lot," but if the College applies that logic to everything, students will instead experience a significant increase in tuition. She added that she does not want to tell someone she is going to eliminate his or her job because the College wants to keep a variety of living options available.

"I recognize that it takes an option of housing away," said Hynes. "I don't like that." However, the hope is that since the upper classes are smaller in size, the majority of returning juniors and seniors will be able to accommodate the townhouses and Community Living Options (CLOs). For those who can't be accommodated, Houghton is looking to bring back townhouse floors in residence halls.

Junior Joel Ernst asked Hynes to address the "poor timing" of the housing change announcement, as it was made "right as they're [students are] applying." Hynes said the College entertained a range of "really bad ideas," and taking the flats off-line was a late-brainstormed idea, which is why it was a late announcement. Senior Gordon Brown asked Hynes if, because of its lateness, the deadline for applications will be extended. "We can look at that," said Hynes. Later in the meeting, Brown moved to pass a resolution to suggest that Resident Life and Housing extend the deadline for applying for a townhouse "so that students reeling from this change can get themselves together," according to senior Chris Clark.

Regarding meal plan changes, the email says that all first and second-year students will be expected to participate in the total access program. "Junior students may be on total access or the 14/comparable block meal plan. Senior students living in the Townhouses may choose total access, the 14/comparable block or 7/comparable block meal plans. Commuters and students with CLOs will still be able to select the 7/comparable block meal plans." Hynes' attitude on the matter is that students are "getting something" from it. "It's not like we're charging students for 14 meals a week but saying they can only get seven."

Other changes that will impact students include the increase in health and counseling fee by $50 per year. "This will allow us to preserve the health and counseling services at the level they are now," said Hynes, which is important because of Houghton's location -- a good distance away from alternative health and counseling services.