An Important Message to the St. Mary's Community

A Letter from College President, 1996-2009 Jane Margaret "Maggie" O'Brien (December 10, 2008)

Dear Members of the St. Mary’s College Community,

I am writing today about steps being taken that address current and future budget challenges, especially given the uncertainty and turbulence that surrounds the economy and financial markets.  Up front, it is essential for us to remember that our core mission provides a quality liberal arts education for students in a residential setting.  We evaluate budget options by how well they support our mission, our strategic plan, and our learning community.

 

The College has four major sources of revenue.  The first two, tuition/fees and auxiliary operations, are from our students and their families.  The third source is the generous annual operating block grant from the State of Maryland.  The fourth is support received from a variety of donors, including alumni, trustees, friends, and parents.  Given the stresses that families are facing, the Trustees have directed that we stay the course next year with modest tuition and fee increases.  The Board has approved tuition and fee increases of 5% that will be matched with a 5% increase in the need-based financial aid budget.  Auxiliary revenues are driven by room rates, dining plans, and bookstore sales.  We again plan a 5% increase in room rates, and will match dining plan increases to rising food costs.  Our support from the state remains intact at this point, with the increase to the block grant calculated through the price deflator for state and local governments.  We all recognize that tax revenues are tied to general economic activity and that Maryland faces the same challenges uncertain financial environment as does our nation.  Thus, we are prepared for a period of instability in our state support.    

 

Finally, donations are a unique revenue source built on gifts from our community, alumni, trustees, and friends.   Given the overall condition of the economy, the final quarter of the year will fall short of our needs, with the performance of financial markets dampening the performance of our investments and the prospects for new major gifts.  Nonetheless, during this uncertain time we are prepared to place a priority on maintaining our commitments, especially to students with financial need, from other revenue sources until such time as the economy recovers.   

 

Many of the commitments to the academic program and student financial aid result from the Heritage Campaign that ended in 2005 as the largest, single comprehensive fundraising effort at the College. We exceeded our $40 million goal with contributions from over 8,000 alumni, parents, friends, faculty, staff, corporations, and foundations.  The Heritage Campaign funded the establishment of 44 new scholarships and awards; eight new faculty chairs and professorships; four new signature programs in international studies in Oxford, Italy, China, and The Gambia; and the first center at the College - the Center for the Study of Democracy.  Support to the College from the St. Mary’s College of Maryland Foundation has totaled almost $17 million over the past decade and supported a number of needs, including scholarships and support for academic programming.   

 

As in our private lives, deteriorating economic conditions are having an impact on the College’s finances.  A growing number of colleges and universities have announced difficulties resulting from lower enrollments as well as shrinking public and endowment support.  The demand for enrollment at St. Mary’s College remains strong.  Our academic programs remain a source of pride in public higher education, and our residential community, performance, and athletics programs continue to engage students, faculty, and our community. 

 

A number of actions are being taken to ensure both the short-term and long-term financial stability of the college.  Fortunately, our advance planning, current performance, and future actions, even with the turmoil on the outside, provide the College with a relatively solid financial base.  Steps taken to date include:

• Postponement of new planned positions and new hiring except for public safety positions.  When possible, we will address the void left by vacancies either by redistributing essential tasks or reassignment of staff.
• A reduction in the amount of year-to-year vacation carryover to 160 hours beginning in July 2010.
• A delay in non-bargaining unit staff and faculty salary increases until July 2010.
• A series of energy saving moves, ranging from low energy lighting to improved temperature control in buildings.  The energy savings will be guided by the College’s adherence to the President’s Climate Commitment.
• A continued commitment to the quality of the academic program, facilities, and support for need-based financial aid for our students.  As noted above, endowed funds are not producing the expected level of income to support fully the annual scholarship support provided to the College from the Foundation.  The College will draw on its ongoing fund balances to support student financial aid that has been committed to students and their families for the current academic year.

We are asking for your support in generating additional ideas that will lead to one-time or permanent savings.  Several of our colleagues have already suggested energy saving ideas or new ways to do things that are leading to savings.  We welcome your suggestions.

Many in the St. Mary’s College community have already responded to our year-end appeal in support of our emergency assistance fund.  This year, given the extraordinary financial challenges before our students and families, and the concurrent downturn in endowment support, I encourage your support of students directly through contributions to the emergency assistance fund.

Sometimes difficult times bring out the best in people, and the St. Mary’s College community is composed of the best of people.  As always, we’ll continue to work, to learn, and to play on the banks of the St. Mary’s River.  We remain firmly committed to our core mission and you can be quite certain that no budget challenge will deter us.

Best regards,

Maggie O’Brien
President, 1996-2009