By Andrea Clarke
Elm Staff Writer
In President Mitchell Reiss’ office hangs a sign that reads “Is it good for Washington College?”
The question is modestly framed beside his door and Reiss says it challenges him every time he leaves the room. Reiss said he called it to mind last semester when the Benefits and Finance Committee recommended that the college raise its tuition. After a collaborative review of the proposal, Reiss and the committee decided to increase next year’s tuition by five percent.
According to Reiss, the tuition increase is necessary despite the fact that over the past two years, Washington College has been trying to keep costs low in a variety of ways.
“There have been no across-the-board salary or cost-of-living increases for faculty and staff. More than a dozen vacant staff positions have remain unfilled,” said Reiss.
He also pointed out that many expenses are beyond the college’s control, such as IT, energy, and healthcare costs, all of which are increasing. In the last two years, the cost of providing health insurance benefits to employees alone has risen to $9,000.
“We’re being very prudent and responsible [and] think a five percent increase is not out of line in comparison to the other colleges,” said Reiss.
On the revenue side, WC relies on what Reiss referred to as the “three buckets.” These are income from tuition and room and board, annual giving and endowment income, and auxiliary income. Each “bucket” supplies the institution with its share of revenue and the combined total of all three is crucial to the college having a successful year.
Since the beginning of his new job, Reiss has been paying particular attention to the second “bucket,” which provides endowment income primarily derived from alumni donations.
“I’ve been spending a lot of time with alumni, trying to get [increased] support and participation,” said Reiss.
Just last week he traveled to San Francisco for an alumni event and this week, he flies to Atlanta.
Reiss said that at each meeting, he “[reminds the attendees] that we are worthy to invest in” and that “one day [our current students] will be asked to do the same.”
Reiss has been urging graduates to donate more money to compensate for the fact that “full room and board costs, even with the increase, do not cover the full cost [of a Washington College education].”
Reiss said he strives to have tuition be the last of the three sources of revenue to be increased because he “understands the pressures on parents these days. I am one too, and I have a child in college as well.”
WC is not the only college finding insufficient revenue from alumni contributions and endowment funds.
On Jan. 28, Bloomberg Businessweek reported that college and university endowments across the country had their worst year since the Great Depression.
Despite the financial challenges facing the college, Reiss said he considers financial aid a priority and hopes to match or even increase the $18 million in aid given to students last year.
“We want to make sure college is as accessible as possible for our students and families,” he said.
Reiss noted that when the recession hit in 2008, WC tightened its belt, cut back on expenses, and took a careful and calculated approach to the future.
Now Reiss believes that, in addition to the college being frugal, “it is [also] time to start investing.”
He said, “We’ve thought through how we’re going to use the funds and it’s going to make the college even better.”
Reiss plans to put part of the tuition increase toward “more faculty, support staff, IT and financial aid.”
Reiss views the tuition increase as a necessary evil.
“If it was 4 percent versus 5 percent, would anyone be less happy about it?” said Reiss. “[It] ultimately comes down to persuading students and parents that we are providing excellent value for [their] investment.”
Reiss believes that the 5 percent tuition increase answers the question that hangs in his office, which, at the end of the day, he says, is the only question that matters.
February 11, 2011
Volume LXXXI Issue 14