JACKIE ALBRECHT NEWS EDITOR
The Wartburg College Board of Regents decided faculty, staff and administration salary increase decisions will be delayed until the fall in order to more clearly understand what revenue the college will receive.
Although salaries will not be lowered, it is uncertain at this time whether increases will occur due to current state of the economy, Wartburg Interim President William Hamm said.
“We’re being prudent because of the direction the economy is going, we simply need to be cautious. The largest element in our budget is salaries obviously, so we are going to be cautious and make sure we achieve our enrollment targets before we commit ourselves to things,” Hamm said.
Vice President of Enrollment Management Edith Waldstein said due to the lower tuition increase, tuition revenue from enrollment will greatly determine what the college can afford.
“The part this year that is a bit unusual is that we have a significantly smaller increase in tuition, which means less revenue. We have taken a hard look at salaries because it is a significant expenditure for the college, and said ‘in these uncertain economic times, let’s change our process this year just to be extra careful,’” Waldstein said.
The college is seeing a decrease in the amount of gifts being received, which is another reason for the delay of salary increase decisions, Vice President of Administration Gary Grace said.
“People who are interested in supporting the college through their philanthropy and gifts are being cautious about giving to the college, which is another source of income. Certainly, not as significant as tuition, but it is significant. … That’s another reason to be cautious, until we understand exactly how that is being affected by the economy as well,” Grace said.
In a Februrary interview, Hamm told the Trumpet that part of the money for next year’s tuition increase would go towards faculty and staff salary increases; however, tuition figures were released before the board of regents discussed budget concerns.
“The board met between the time [The Trumpet] talked to President Hamm and me about the tuition increase. ... As a part of the deliberations, discussions, study and analysis of the budget for next year, they decided in these uncertain economic times it was wise and responsible and prudent to be cautious in terms of the budget that is set for ’09-’10,” Waldstein said.
Any tuition that would’ve gone towards salary increases will stay in the operating budget, Waldstein said.
“The budget that the board approved is a plan for expenditures and a plan for income next year. … Right now that plan says we may not have enough tuition income to cover everything that we need to cover and increase salaries,” Waldstein said.
After fall enrollment figures are known, the administration will be able to see whether there is enough net tuition revenue to do more than was planned. If there is enough revenue, the first priority will be to look at faculty and staff salaries, Waldstein said.
Hamm said most institutions are delaying making any decisions on salary increases until early fall.
“Not everyone is doing a salary freeze, but they’re taking a bigger risk than we are. I think everybody is being very cautious,” Hamm said. “Virtually everybody I’ve talked to is undertaking strategies similar to the ones we are undertaking.”
In the past, salary increases have been decided in the spring. Waldstein said, however, that many institutions do not decide on salary amounts until the fall as a normal means of operation.
Despite salary increase decisions being delayed, benefits for employees have not been lowered, Waldstein said.
“The retirement benefits are the same as they have been. If you were to look around the higher education landscape and the business and industry landscape, that’s not necessarily true in this economy,” Waldstein said.
Hamm said the budget is being trimmed where appropriate to be cautious in the current economy.
“We’re doing all sorts of things to try and trim the budget without hurting anybody. We don’t want to do anything that diminishes the academic experience of students,” Hamm said.