By Sofia Montoya-Deck<\/p>\n\n\n\n
Hood College is facing a budget deficit of $2 million to $2.5 million after a misestimation of financial aid allocation, Memorial Hall delays and other financial issues.<\/p>\n\n\n\n
College president Andrea Chapdelaine said the school plans to combat the matter through drawing on contingency funds, deferring new expenses where possible, increasing scrutiny of operational expenses and delaying hiring for unessential open positions.<\/p>\n\n\n\n
\u201cIn previous years, we\u2019ve always had a surplus [of funds], so we\u2019re able to use previous years\u2019 surpluses to offset the expense for this year,\u201d Chapdelaine said. \u201cThere are strategies we can pick that don\u2019t impact anything on campus right now.\u201d<\/p>\n\n\n\n
Some new initiatives, such as improved technology, will be delayed until further notice. \u201cWe\u2019re trying to cut expenses to make up that shortfall, but we\u2019re being very careful about where we cut because we don\u2019t want to impact students\u2019 experiences,\u201d Chapdelaine said.<\/p>\n\n\n\n
Chapdelaine assures the Hood community that the situation is no reason for panic. Tuition will not significantly increase to make up for the loss and financial aid will not be cut. \u201cIt is not dire,\u201d Chapdelaine said. \u201cIt\u2019s never fun to have to squeeze dollars and not spend money where we want to, but that\u2019s what it is. It\u2019s tightening the checkbook a little bit.\u201d<\/p>\n\n\n\n
After a series of administrative vacancies last year, the college currently has few administrative roles still open. While many of these positions will be frozen to accommodate the budget shortfall, essential roles, such as a new campus safety officer, will be filled.<\/p>\n\n\n\n
In addition to factors such as lower undergraduate enrollment and fewer students living on campus than predicted, the budget deficit can be attributed to an underestimation of financial need. \u201cThe financial aid that we gave to students was appropriate to what their need was,\u201d Chapdelaine said of last year\u2019s aid. \u201cEssentially, students\u2019 financial need was higher than we had projected.\u201d<\/p>\n\n\n\n
The delayed construction of Memorial Hall also contributed to the budget deficit. Because students were unable to move into the renovated residence hall in fall 2023 as planned, they were relocated to other dorms on campus. As a result, Memorial residents were offered discounted housing.<\/p>\n\n\n\n
The budget shortfall is also due to financial issues like higher inflation and increased cost of business. \u201cMaking sure we can supply the programs with the support they need is more costly than it has been in previous years,\u201d Chapdelaine explained. \u201cI don\u2019t think we did anything particularly different this year; it just varied a little more than we anticipated.\u201d<\/p>\n\n\n\n
The budgeted revenue projected for Hood in the 2023-24 academic year was $51 million. As of Jan. 31, the deficit is projected to be $2 million to $2.5 million, roughly 5% of the budget.<\/p>\n\n\n\n
The deficit is estimated at a broad range due to many variables at play, including the school\u2019s annual census. A day is picked each fall and spring semester where the number of students on campus is counted, determining the school\u2019s population for that semester. This semester\u2019s census results, as well as the finalization of other financial details, will help determine a more precise deficit amount.<\/p>\n\n\n\n
In October 2023, Hood was gifted $54 million from the Hodson Trust, increasing the college\u2019s endowment by 42%. Through the endowment, Hood will be able to use the gift\u2019s resulting investment income for undergraduate scholarships. However, the college cannot begin pulling from this fund until the 2026-27 school year. \u201cIt\u2019s going to have a huge impact,\u201d Chapdelaine said. \u201cWe just have to be a little patient.\u201d<\/p>\n\n\n\n
The school is already looking to predict next year\u2019s financial results as accurately as possible. However, this task is complicated by the delayed FAFSA. In past years, the FAFSA opened on Oct. 1. In 2023, it was not made available until late December. Accordingly, Hood will not acquire results from the form until mid-March.<\/p>\n\n\n\n
Hood\u2019s budget for the 2024-25 academic year is scheduled to be set by April before going to the board for approval in June.<\/p>\n\n\n\n
\u201cWe\u2019re very much committed to making sure that students have what they need so they can continue and finish their education,\u201d Chapdelaine said. \u201cIt\u2019s well worth that investment, even if it made the budget go into deficit this year.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"