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BY LINDA HOU

In print | Published October 22, 2009

In an effort to represent student opinion in these next months’ budgeting plans, the college has established the Student Financial Advisory Panel. Made up of students, the panel will assist the Ad Hoc Financial Planning Group, which was formed last year to respond to the national economic downturn. The planning group consists only of board members, administrators, faculty and staff.

“My hope for the Advisory Panel is this: some budget cuts will inevitably affect the students, and I think that the most important contribution we can make is for us to try to identify these areas and to be able to relate those back to the students,” Student Council Vice President Nathaniel Erskine ’10 said.

Since the college’s endowment is down 16.8 percent from its peak last year, the Ad Hoc Financial Planning Group plans to propose a new program that will either cut or find other funds for $8 million annually.

Two weeks ago, the lack of student input became a concern at a fireside chat about the college’s finances.

It was then proposed that the college should establish a student advisory group to aid the Ad Hoc Financial Planning Group in the formation of the $8 million plan.

“The way that money mediates who comes to Swarthmore and what type of community Swarthmore becomes is something we should all care about,” Student Financial Policy Representative Daniel Symonds ’11 said after the meeting.

Erskine added that though the panel will present students’ opinions to the Ad Hoc Financial Planning Group, the Ad Hoc Financial Planning Group will not give the panel confidential information, such as salaries of the faculty and department budgets. The group cannot allow any students access to that information. Nevertheless, the student panel will be able to give advice on topics directly affecting the students.

Erskine said that in cases where the council is debating student budget cut options, he would like the panel to communicate with the student body to determine the things that students value the most.

“We’ll do it in a way so that all Swarthmore students can know about it and all Swarthmore students will be able to give their input,” Erskine said.

The group currently consists of Student Council President Rachel Bell ’10, Erskine, Kevin Kim ’11, Robert Manduca ’10, Symonds and Student Budget Committee manager Simon Zhu ’11.

Two remaining spots were opened to the student body. Over fall break, Student Council Appointments Chair Jacqueline Bailey-Ross ’12 offered an application for these positions in an e-mail. The application asked questions such as, “What sort of role can you envision for yourself in establishing a better dialogue on finances between students and administrators?” and “As a representative of the student body, how do you see your role on this committee?”

Bailey-Ross said that Bell and the student council appointments committee then interviewed applicants.

“After the interviews, the committee will discuss and debate until we reach a consensus,” Bailey-Ross said. “We use the application, interview, past experience, other obligations and many other qualities to determine the student to be appointed. Of course, if there is a tie, the Appointments Chair can break it.”

The two final members of the committee were chosen out of seven total applicants yesterday. The student panel will have its first meeting tomorrow.

In addition to the Student Financial Advisory Panel, the Ad Hoc Financial Planning Group will also meet with the Faculty Staff Benefits Committee and host a student fireside chat in mid-November to discuss the published draft with all students. Students, faculty and staff are also welcome to send the group suggestions or comments through the Financial Office’s website.

The Phoenix reported on the college’s endowment and budget in the Sept. 3, 2008 issue.

Because Swarthmore derives about 50 percent of its operating income from its endowment, the budget is very susceptible to influence by market fluctuations. Previous projections gave about a 30 percent decrease in endowment. Though Swarthmore had a lower decrease than expected, the endowment is still down by 16.8 percent. The college’s endowment dropped from $1.4 billion to $1.1 billion in the past year. As a result, the college will have to compensate for the loss by either cutting costs or increasing revenue.

The Ad Hoc Financial Planning Group plans to publish a preliminary draft of its proposal for the $8 million adjustment (down from the originally projected $15 million) in November. After receiving feedback from the Swarthmore community and revising the proposal accordingly, the group will finalize its plans and submit it to the Board of Managers.

The group includes a list of suggestions it has received for cutting down costs and increasing revenue, such as hosting more summer programs, reducing loan-free financial packages, and encouraging double-sided printing and copying. The list consists of only suggestions, and has not been reviewed by the group.

The current Ad Hoc Financial Planning Group consists of President Rebecca Chopp, Provost Constance Hungerford, the vice presidents, three deans, as well as members of the Board of Managers and a representation of Swarthmore faculty and staff.

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