Oberlin's tuition hike will be the lowest in approximately 30 years but the endowment payout rate will increase to 5 percent, nearly 1 percentage point above the long-term goal.
The budget guidelines were announced Saturday at the Board of Trustees' meeting. By passing the guidelines, the Trustees accepted the plan to trim $3.2 million from the annual $90 million operating budget in an effort to reduce Oberlin's structural deficit.
Of the $3.2 million which is being cut in order to eliminate the school's structural deficit, it was announced by trustee James Ford that $3.189 million is now projected to be eliminated. Thirty jobs on campus have been eliminated in the restructuring, according to Vice President of Finance Andy Evans.
Other financial announcements were made, including the expected changes in tuition, faculty and administrative salaries, and changes in financial aid packages as well as changes in the post-retirement benefit. Tuition is expected to go up by four percent and room and board fees will go up by 3.5 percent, the smallest increases in 20 years. Next year's tuition will be $21,425, and $27,750 including room and board. Faculty salaries will be raised an average of seven percent, and adminstrative salaries will be raised four percent.
The endowment payout rate is increasing from 4.4 percent to 5 percent. The long-term payout rate goal for the College is 4.1 percent.
The financial aid packages offered to first-year students will be changed as well, in hopes of making Oberlin more competitive with other schools. Oberlin's current financial aid package is not considered competitive among the other schools with which Oberlin competes for students. The administration wants to add $800,000 - $600,000 for self-help, specifically towards the grants students recieve and the other $200,000 for flexibility in shaping the incoming class.
A change which was not put into effect by the Board of Trustees was a change in accounting firms for the post-retirement benefits. This would have had no effect on the amount of money or the previous plan, but the Board wanted more information.
The Board is expected to approve the final guidelines at its June meeting.
At the meeting last weekend, the Board also passed the finalization of the Environmental Studies Center site in between South Hall and Harkness House and the construction of a memorial garden for World War II veterans who were Oberlin students.
Copyright © 1996, The Oberlin Review.
Volume 124, Number 18; March 15, 1996
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