DAN ORZECHOWSKI and JOSH RANNEY
News Editor and Assistant News Editor
Since 2007, Fredonia has been in a structural deficit. Throughout the years, this hasn’t been a huge problem, but now that reserve funds are dwindling, the issue is more of a concern.
In the 2007-2008 academic year, the structural deficit sat at about $400,000. Four years later, that deficit breached $6.4 million.
In the Fall, Fredonia saw a boost in enrollment and welcomed the second-largest freshmen class in the university’s history. Since then, student housing has increased by 10 percent.
This week, students who are on the fence on where to attend college will likely make this decision. All eyes are now on enrollment deposits — a leading contributor to Fredonia’s income.
In a University Senate meeting earlier this month, Vice President for Finance and Administration Mike Metzger (who assumed his duties this past summer) told the Senate that increased enrollment is “not going to be enough.”
President Virginia Horvath announced in a budget presentation on Monday that cuts for the next academic year are inevitable.
The biggest cuts will be from the departments of Academic Affairs ($1.25 million) and Utilities and Institutional Costs ($900,000), although specific figures in these areas were not mentioned. Cuts for each area will be determined on July 1.
At the same Senate meeting, when asked if the state knows that Fredonia doesn’t have spare cash, Horvath answered: “The [state] does not provide what we call a maintenance of effort. Do they not know, or do they not care? I cannot begin to guess.
Over the years, state support has remained steady while expenditures have risen.
“We will strengthen our advocacy and lobbying for two things that make a difference to us: additional base state funding and a competitive rate for out-of-state tuition,” said Horvath.
“You would not run a business like this,” continued the president. “You would not have an institution not able to set its prices, and not be able to control its costs — two things that are determined outside of us.”
Fredonia has two types of reserve funds: restricted and unrestricted. Restricted funds, usually set aside for buildings, can not be touched. As for the unrestricted funds, they’ll be used up by the next fiscal year, according to Metzger.
Recent building projects such as constructing the Science Center, which cost $60 million, and the Rockefeller Arts Center, which cost about $40 million, were financed through restricted funds — these projects did not add to the deficit.
To tackle the deficit, Horvath announced a number of actions the school plans on taking.
An already-vacant vice president position will not be filled, therefore eliminating an entire line in the budget. Instead, the Division of University Advancement will merge with the Division of Economic Development. Vice President Kevin Kearns will lead the combined departments without taking a pay raise.
Total cuts will amount to $4.9 million, with final cuts being determined by respective vice presidents.
While addressing rumors, Horvath said that full-time employees will not be laid off. The school will not be borrowing money from SUNY, and no new restrictions will be added to the hiring process.
At the Senate meeting, Horvath said Fredonia “is not the first domino,” meaning other universities in New York are in similar financial situations. Horvath, again, did not disclose which specific schools these are.
At the end of Monday’s presentation, a concern about student meal plans was brought up regarding the cost of meal plans and how they relate to overall tuition. Value of meal plans, according to the audience member, did not equate with the cost of food on campus.
Horvath acknowledged that this is a concern of students, and urged them to reach out to the Faculty Student Association (FSA).
FSA, which is its own entity, and a for-profit business contributed over $1 million to various school programs.
Horvath encouraged any further questions to be directed to the Budget Office.
“I believe in Fredonia, and I believe in all of you,” said Horvath. “Please don’t lose hope or the sense of community at the heart of all we do.”