<p>From: Barry.P.Scherr @ dartmouth....edu
Subject: Dartmouth's Budget Reconciliation Plan
Date: February 9, 2009 12:51:40 PM EST
To: alums-and-parents-announce @ locum.dartmouth...edu</p>
<p>SUMMARY OF ACTIONS: DARTMOUTH'S OPERATING BUDGET</p>
<p>Dartmouth is implementing a strategic plan to decrease its College-wide operating budget of $700 million
by $72 million between now and 2011 (including the professional schools).</p>
<p>This plan calls for a $47 million reduction in the College-only budget of $450 million (excluding the
professional schools). Budget reductions at the Thayer School of Engineering and Tuck School of
Business are included in this summary. Dartmouth Medical School continues to work on a new strategic
plan and consequently will finalize its budgetary adjustments at a later date.</p>
<p>All cuts are the result of a thoughtful process that benefited from significant input from students, faculty
and staff. Our overarching goals have been to protect and enhance the excellence of the educational
experience for our students and to ensure that they have the opportunity to attend Dartmouth regardless of
financial need. As a result, there will be no reduction in tenure-track faculty positions, and we will
continue to offer need-blind admissions and meet our students' full financial need without asking them to
take on loans. Our aim is to learn to live with less and yet retain Dartmouth's core strengths along with
our ability to innovate and lead as one of the world's most enduring institutions.</p>
<p>The sharp decline in our endowment, on which we depend for about 35% of the College-only
operating budget, has left us faced with the potential for extremely large deficits in the coming
years if we were simply to continue doing business as usual. In deciding how much of our
endowment to use each year we employ a formula that is meant to smooth the impact of year-to-
year variations in endowment performance on our budget. However, neither our formula nor any
other plan can manage the virtually unprecedented drop in endowments over the past few months
without implementing significant expense reductions. Next year our spending formula will result
in our utilizing a higher percentage of our remaining endowment than we did this past year. That
is not sustainable in the long run and would be irresponsible to future generations of students. The
steps we are announcing are necessary maintain the long-term health of the institution.</p>
<p>An educational enterprise is labor intensive: More than 50% of our operating budget supports the
workforce of Dartmouth - our faculty and staff. To meet our budget reduction target, cuts in program
support and facilities alone are not sufficient. Nearly half of the budget cut will come from freezing
compensation, reducing work hours, slowing the hiring process, and unfortunately, eliminating some staff
jobs as well.</p>
<p>Administration</p>
<ul>
<li><p>All administrative areas are reducing their work force. 150 full-time positions are being eliminated.
Although most of this will be achieved through retirements, reorganizations and attrition, 60 staff
employees will be laid off. In addition, 28 employees will work reduced hours.</p></li>
<li><p>Operational reductions have been made in areas including computing services, fundraising,
human resources, travel services and academic department support.</p></li>
<li><p>Discretionary expenses including travel, participation in conferences and consortia, gatherings on
and off-campus, and printing and publications have been cut in all areas.</p></li>
<li><p>Communications will increasingly move from print to electronic media.</p></li>
<li><p>Service levels will be reduced in offices throughout campus, including payroll, selected dining sites, computing services and admissions, requiring students, faculty, and staff to plan their schedules
more carefully.</p></li>
</ul>
<p>Faculty and Staff Compensation</p>
<ul>
<li><p>Most salaries will be frozen for the coming fiscal year.</p></li>
<li><p>Full-time employees earning less than $50,000 will receive a $1,000 supplement (except for those
at the Medical School).</p></li>
<li><p>Faculty who are promoted or receive tenure will receive the usual adjustments.</p></li>
</ul>
<p>*Some faculty searches will be postponed with a goal of renewing them within three years.</p>
<p>*Plans to expand the faculty at Thayer School and Tuck will be slowed.</p>
<p>Academic Support and Student Programs</p>
<p>*Core programs in the library and the integrity of the collections will be preserved; savings will be
made in several areas, including elimination of specific databases and collection-related services and
ending Dartmouth's participation in certain national organizations.</p>
<p>*We remain committed to offering small classes taught directly by our faculty.</p>
<p>*Foreign Study Programs, Language Study Abroad Programs, and both undergraduate and graduate
research opportunities will be sustained.</p>
<p>*Funding for travel and support services for some student groups will be scaled back.</p>
<p>Facilities</p>
<p>*Construction projects well underway will be continued, including:
- Class of 1978 Life Sciences Center,
- Red Rolfe Field at Biondi Park, and
- Renovations of New Hampshire Hall and Buchanan Hall.</p>
<p>*Renovation of one sorority facility will begin while another will be put on hold. </p>
<p>*Plans for the Visual Arts Center and C. Everett Koop Medical Science Center will continue to be
reviewed.</p>
<p>*Other projects will be deferred, including:</p>
<ul>
<li>The Thayer Dining Hall replacement,</li>
<li>The Class of 1953 Commons, and</li>
<li>Renovation of the West Stands at Memorial Field.</li>
</ul>
<p>Reducing expenditures for people, programs, and facilities is difficult. We have worked
to deal with the budgetary problem in a way that protects our core values as an
institution</p>
<p>Barry Scherr
Provost</p>
<p>Adam Keller
Executive Vice President, Finance and Administration</p>
<p>.</p>