Slow thaw: Dopp says end to salary freeze likely
By Ryan Lewis
Staff Writer

The pay freeze may be thawing. But the college deficit - which stood at over $1 million in May - hasn't entirely melted.

Dale Dopp, vice president for finance and management, said he expects the Albion College Board of Trustees to enact a 3 percent salary pool increase for administrative staff and faculty for the 1996-97 academic year. This year's faculty and staff accepted a salary freeze to help alleviate the budget deficit.

But Dopp admitted that while the pay freeze may end, the college's financial problems aren't solved yet. "We ended the [1994-95] year with a $1,159,760 deficit," he said.

The executive committee of the trustees will meet in February to vote on the proposed salary increase - as well as for 1996-97's tuition and fees.

"I think the trustees are willing to support a salary increase," Dopp said. "We're looking at a 3 percent pool increase, and out of that pool comes standard increases, merit increases, bonuses and promotions. It [should] be in effect for the administrative staff on July 1, and for the faculty on September 1."

Dopp projected this year's deficit at $300,000. He said the deficit has been "covered by the quasi-endowment."

The quasi-endowment, money the trustees and administration set aside for several years, was established in the early 1980's. Its function: an endowment resource, according to Dopp. It once totaled $5 million - but only $500,000 is now left.

The endowment's depletion and last year's million-dollar deficit prompted $2.2 million in administrative budget cuts and a salary freeze for administrators and faculty during the past year. But even with those measures, the college budget is still unbalanced.

Dopp said $300,000 of the quasi-endowment's remaining $500,000 will go toward the budget - leaving only a spare $200,000. So the college is taking it one step more.

"For [next year's] budget, we're cutting three faculty positions, [saving] roughly $183,000, [but] that's not going to balance [it]," he said.

"And that's with no increase for faculty and staff costs, no increase of other controllable costs for the college and zero increase in our health care costs."

Salary increases will take up precious room in next year's already-crowded, currently-unbalanced budget. Dopp attributes the deficit to declining enrollment.

"From the demographics we receive from public schools, high schools are graduating fewer students. That means we have fewer students to enroll at the college." And that leaves less students to divide up the expenses.

"There's definitely going to be pressures of tuition increases," on top of the 3 percent annual inflation cost increase.

"We have increases [in operating costs] that we cannot control. They include energy costs, utility rates, our insurance costs for liability property damage and our endowment management fees."

Yet another factor to add into the budget equation is the Kellogg Campus Center's operating expenses.

"We will have to clean [the center], heat it and maintain it. Plus, there will be additional hired programming staff."

During its February meeting, the trustee executive committee will determine what new cuts are needed and how the tuition increase for 1996-97 will be.