President outlines campus response to poor economy

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The following is a message from President Rebecca Chopp to the Colgate community:

As we begin this week of Thanksgiving, we are mindful both of all that we as a nation and a campus community have to be grateful for and of the challenges that we must be prepared to face moving forward.

Through it all, we maintain our focus on our primary task as a university, what Alfred North Whitehead called “the creation of the future.”

In teaching a first-year seminar this fall, I am very aware of how fortunate we are to be able to teach outstanding students and work with great faculty and staff on this vibrant, beautiful campus. I am inspired by the performances of our debate team, our theater groups, our Patriot League Champion athletic teams and, importantly, the ways in which our campus has pulled together to show its true character.

There is no better example than the events over the past few weeks – from the Speak Out to the Solidarity event to the Unity March and so many others – that drew students, faculty and staff together to denounce recent acts of ignorance and intolerance and strongly affirm our commitment to diversity and inclusivity. In the true spirit that is Colgate, we continue to aspire to make our community and our education stronger and better.

We also continue, and will continue for some time, to navigate a period of great global economic turbulence. And yet we must chart our way through these times because of the importance of our mission. We are a strong institution with great momentum and we will join forces to make sure we meet our current challenges while we continue the mission of educating young men and women for the future.

Last month, I wrote to you about the global economic downturn and outlined some of the ways in which it has affected Colgate and all of higher education. Today I write to provide an update on where we stand and to outline steps we will be taking as a university to respond thoughtfully and collaboratively.

Such an approach will draw on our collective resources as we maintain our focus on academic excellence and the strength of our community bonds during this challenging time.

Recent meetings of the campus budget committee, the faculty Advisory and Planning Committee, and the Personnel Advisory Committee have made it clear that our community has a grasp of the very difficult economic climate and genuine interest in finding new ways to pool resources and make sacrifices where necessary to ensure that Colgate continues its climb as a leader in higher education.

To do so, we must preserve those commitments that are at the core of our academic excellence. As I stated in my previous communication, financial aid is such a commitment.

We are certain that many of our students and their families have been affected by the state of the economy, and we expect that this will increase their need for aid from Colgate. While meeting these new needs will put additional pressure on our budget, this is a commitment that we must fulfill. Financial aid is a critical component in Colgate’s ability to attract and retain the best possible students, particularly at a time of broad economic hardship.

As we develop a plan for moving forward, we do so knowing that we walk a fine line. An overly tentative, or delayed, response may leave us having to take more drastic action later, while hasty overreaction may hinder our ability to maintain the university’s positive momentum. What is absolutely clear is that some immediate measures, listed below, are required.

1. Our first action will be to substantially reduce next fiscal year’s operating budget allocation to capital projects. While we plan to partially restore this cut in future years, the overall condition of Colgate’s physical plant is excellent relative to peer institutions and a temporary reduction in renovation and maintenance activity is appropriate.

2. I have asked all deans and vice presidents to identify 5 percent savings in their operating budgets for 2009/10. Along with Provost Lyle Roelofs and Treasurer David Hale, I will be reviewing these proposals to see what cuts we can sustain without negatively impacting our educational mission. Although this will be a challenging exercise, I expect it will be productive and aligned with good practice. I encourage divisions and departments to work collaboratively to create new forms of cooperation within and across divisions to find efficiencies.

3. All currently vacant non-faculty positions will be subject to review and approval before permission is granted to proceed with a search. This review will be undertaken by myself, David Hale, Lyle Roelofs, Associate Vice President for Human Resources Pamela Cesar-Prescod, and a faculty representative currently serving as a member of the on-campus budget committee.

4. Finally, while we are committed to achieving appropriate and significant budget savings outlined in steps 1, 2 and 3 above, we also expect that Colgate will need to temper compensation expenditure growth. While Colgate remains committed to offering appropriate and competitive compensation, we are now in a time where we must be prudent with our resources even in compensation.

We have made great strides over the past few years, advancing our strategic planning priorities thanks to the hard work of those on campus and the generosity of alumni, parents, and friends who have helped fund key initiatives. Our ability to advance in the future will be dictated by how we respond to the changing economic environment today.

These challenges are not unique to Colgate, but the ways in which we respond must reflect our unique mission and values as an institution and as a community. I thank you for all that you do in support of that mission and, as we work through this situation, for reflecting the values that we hope Colgate represents as a leading liberal arts university.

Regards,

Rebecca S. Chopp
President