Wesleyan’s Future is Unclear and It’s Time to Shape it

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Wesleyan’s Future is Unclear and It’s Time to Shape it The recent gathering of the Board of Trustees highlighted both the important strides towards fixing Wesleyan’s budget deficit that have been made in the last few months, and the long, and frankly frightening road that we may have to travel. While we are encouraged by the Administration’s action towards closing the current deficit, we are troubled by our University’s worrisome financial situation and the possible actions that we may take to combat it. Some of the extreme measures that President Roth suggested to the Board to close the deficit if the endowment continues to shrink may have serious, long-lasting repercussions. The gravity of this situation calls into question Wesleyan’s very purpose as an institution of higher learning.

The Administration, and specifically President Roth and Vice-President John Meerts, has dealt with this budget crisis in a smart, frugal manner, and their success in tackling next year’s projected deficit should not go unnoticed. They have so far managed to guide Wesleyan through this financial storm without forgetting about the University’s promise to meet student’s demonstrated need. We salute the Board of Trustees decision to only increase tuition for next year by 3.8 percent as opposed to 5 percent. Given the harsh economic climate, both the board and the Administration have done the best that could be expected of them.

Unfortunately, these good tidings are completely obscured by the grim possibilities facing Wesleyan if the endowment continues to decline. The severe measures that President Roth and Vice-President Meerts have outlined raise fundamental questions about Wesleyan’s future: should we cut financial aid, or should we dismantle organizations like WESU and the Green St. Arts Center? Is Wesleyan’s commitment to meeting 100 percent of demonstrated financial need as important as the community services it provides, not to mention the salaries of the faculty and staff that it employs?

These questions may seem abstract, but the mere fact that they were proposed and discussed means that they are very real. If the endowment dips below $400 million by the end of this fiscal year (June 30), the Board could begin implementing these drastic measures as soon as the fall semester of 2009. Given that the endowment has dropped $232 million in the last year and a half, this scenario is a distinct possibility.

These very immediate concerns must spark a debate about what Wesleyan’s goal as an institution should be: for example, is closing off community services worth preserving a robust financial aid system? Without this spirited debate, the Wesleyan community could find itself left without a voice—or voices—to ensure that our visions of this institution remain intact.

And this debate must lead to prompt and sustained action. We, as a community—students, staff, faculty, and interest groups—have to make sure our voices are heard and our opinions known before these lasting decisions are made. Each person who has a stake in the future of this institution must share their views with the Administration, and organize a group of people to do the same. Even if we disagree—and we will—it is essential that these competing views are understood. It can no longer be denied—we have reached a critical moment, and if we don’t realize that we could easily see the Wesleyan that we believe in slip away.

  • David Lott, ’65

    “We salute the Board of Trustees decision to only increase tuition for next year by 3.8 percent as opposed to 5 percent. Given the harsh economic climate, both the board and the Administration have done the best that could be expected of them.”

    Actually, in terms of purchasing power, the 3.8% increase is more than the 5% increase for the previous year. Last year, overall incomes were rising and the inflation rate was about 2.5%. So the tuition increase was 2.5% over the rate of inflation.

    This year, incomes are flat or declining, and price levels are declining in nearly all categories. Assuming that there is no inflation, this means that the real tuition increase of 3.8% is greater than last year. Since prices and incomes are declining, the real increase is even greater.

    Wesleyan and nearly all colleges have been increasing student costs at nearly double the rate of inflation for two decades. This increase is no more sustainable than the increase of house prices above the rate of inflation was sustainable.

    Wesleyan also apparently plans to continue to remove 5.5% of endowment each year for expenses. If endowment investment values decline only 4% per year over a five year period, this rate of withdrawal will cut endowment nearly in half.

    The cuts being proposed by the administration are not severe. Wesleyan continues to spend beyond its means. But unless the school gets very lucky, severe cuts are just around the corner. Likely these cuts would include elimination of whole departments, faculty reductions, decreases in student aid, cutbacks in athletic programs and a halt to any new facilities whatsoever.

    Then you will have to decide whether “the Wesleyan you believe in” is really dependent on lavish facilities and expensive programs. Or can it be sustained by something simpler?

    The gold plated era of Wesleyan education may be coming to an end. Soon.

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