With increasing pressure to limit tuition costs, University Senate officials discussed alternative ways to diversify and expand the school’s revenue sources to ensure financial security.

“I wouldn’t be as bold as to say we’re approaching the fiscal cliff, but there are choices we need to make almost immediately down the line,” said Craig Dudczak, chair of the Committee on Budget and Fiscal Affairs.

Dudczak presented his recommendations for the university’s budget in his committee’s report to USen on Wednesday in Maxwell Auditorium at 4 p.m. The transition to a new chancellor within the next year and a half provides the perfect opportunity for carrying out these changes, he said.

In last February’s budget and fiscal affairs report, the committee recognized the university faced multiple challenges: declining undergraduate student population, slow economic recovery from the 2008-09 recession and less public funding for research grants and financial aid.

This year, the numbers are more or less the same, Dudczak said. This is a concern, as 79 percent of the university’s revenue comes from undergraduate tuition, graduate tuition and auxiliary direct revenue such as housing and meal plans. Alternative revenue must be sought, he said.

Additionally, the overall discount rate for tuition was higher in 2012 than budgeted for first-year students, continuing students and transfer students, Dudczak said. While higher discount rates decrease the cost of attending Syracuse University and make the university affordable for many students, these high discounts also slow revenue growth in the overall budget.

This trend plays into another concern, Dudczak said: the decrease of what he calls a “middle” gap, or what occurs as the number of students with discounted tuition nears the number of students paying full tuition.

Dudczak also talked about the Billion Dollar Campaign, which some brought up as a possible source of revenue for the university. But he noted only half of the promised gifts for the campaign has been collected.

“We may look like we’re rolling in cash, but that’s not actually the case,” he said.

The university’s revenue, Dudczak explained, goes toward several areas. The most revenue is allocated for faculty and staff salaries, budgeted at 22 percent, and fringe benefits, at 7 percent.

Dudczak proposed three recommendations for creating financial sustainability for SU:

• The Board of Trustees could hire an external consultant to evaluate the size, functions and organization of central administration and responsibility centers, as the budget committee lacks both the expertise and resources. At a time when the university anticipates the transition of a new chancellor, an external review would be appropriate.

• The proposed tuition increase for 2014 should be held at its current level of 3.6 percent, as continued growth of financial aid requires the funding to make it possible.

• Changing the name of “administration” to “university services,” so as to disassociate the term “administration” with the chancellor.

Additionally, Dudczak and the Committee on Budget and Fiscal Affairs proposed that graduate programs be developed and expanded to bring in revenue, as well as increase the number of international students in underrepresented programs. He also suggested offering Winter Break courses, modeled off of Maymester, and expanding online offerings.

Dudczak suggested using campus facilities during the summer. The Carrier Dome, for example, could be used to host events such as concerts during this time.

Other business discussed:

• In addition to Dudczak’s report, USen addressed the restructuring of its current committees. Bruce Carter, chair of the Agenda committee, said there have been issues with the duplication of efforts by some committees, as well as certain committees that are unnecessary. He asked the senate to examine the responsibilities of the committees and prepare to discuss restructuring in March.

• Gerry Manger, a member of the Committee on Administrative Operations, also presented a report discussing several meetings conducted during the last year to check up on university operations. The committee met with Ben Domingo, Director of Health Services; Allan Breese, Director of Business and Facilities Maintenance Services; Al Sauer of Parking and Transit Services; Peter Sala of the Athletic Department; Tom Rose of the Office of Human Resources; Eric Beattie of Campus Planning, Design and Construction; David Pajak of Risk Management and Dan Weers of Emergency Preparedness and Business Continuity Planning.

• The committee has three more meetings scheduled on public safety, parking and transit services, and the Dome. Those meetings will be summarized in the committee’s next report.

Published on February 13, 2013 at 11:50 pm

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