Ithaca College

Posted on behalf of President Tom Rochon and Vice President (CFO) Gerald Hector.

At its recent meeting, the Ithaca College Board of Trustees approved the operating budget for the 2016–17 fiscal year. The $238.4 million budget will be funded by an increase in tuition, room and board; by the implementation of cost savings measures previously discussed with the campus community; and by a planned reduction in the operating surplus.

We have been able to cut the rate of tuition increase to historic lows, with the 2.59% rise planned for next year representing the smallest percentage increase in at least 70 years. The combined total cost for the student in a standard double room and corresponding board plan for next year will be $56,766.

Our commitment to remaining affordable is also underscored by the inclusion in the college’s budget of over $118 million for institutional financial aid, the highest amount ever.

As you know, Ithaca College is one of the most expensive private colleges in the nation, ranked 48th most expensive in a federal government listing as recently at 2013. Last year we moved down to 78th, no longer on the government’s list of the top 5% most expensive colleges and universities. With our continued commitment to a small cost increase and strong financial aid budgets, we can hope in the year ahead to move out of the top 100 for the first time.

One of the elements of the budget that is of greatest interest to faculty and staff is the salary increment pool. In an effort to attract and retain talented faculty and staff, the college continues to provide a compensation pool that is fully competitive with the market with respect to salary and very strong in the market with respect to benefits.

The salary pool will be 2.50%, or $2.3 million. These funds will be allocated 1.75% to the full general merit pool, and 0.75% to the additional merit pool. The 2.5% pool for full general merit and additional merit continues the college’s commitment to performance-based compensation.

The differential between the increase in tuition, room, and board (2.59%) and the increase in the salary pool (2.50%) is the smallest in a very long time, achieved despite the continued acceleration of expenses beyond our control such as employer contributions to health care insurance. We are able to maintain this small differential thanks to the cost efficiency measures on which staff and faculty have lent their cooperation.

The college remains at very strong Composite Financial Index Score of 6.0. Coupled with our Moody’s A2 rating, we are poised to continue to look at ways in which we can be very strategic and prudent about the investments that we have to make in order to maintain our financial health while achieving our mission of educating the best and brightest.

We believe that the operating and capital maintenance budgets approved for the coming year effectively continue our commitment to contain costs to students while remaining a highly desired employer of faculty and staff. If you are interested in learning more about the 2016-2017 budget, please attend the February meeting of “Dollars and $ense”, on Tuesday, February 23, 2016 from 9am to 11am. The full budget book will be posted online on February 17, 2016.