After Layoffs, Whittier College Projects Lean but Balanced Budget

After ordering painful staff cutbacks last year to avert a sharp deficit, officials at Whittier College say they are projecting a balanced--although lean--budget for this year.

“We’ve had to make a lot of sacrifices,” Finance Director Joseph E. Cardoza said. “But now we’re lean and on the right track. We’re keeping a lid on expenses.”

College officials were forced last spring to lay off two teachers--one each in the mathematics and drama departments--and eliminate three unfilled faculty positions. On the administrative side, six staff members were laid off and seven unfilled positions were eliminated.

Officials had said that, without the cutbacks, the college would have faced an operating deficit of at least $262,000 in the 1988-89 fiscal year, which ended June 30.

Originally, some planners predicted that the college would have to eliminate 12 faculty positions and 13 non-faculty positions to balance the $22-million budget. But an increase in fund-raising and student enrollment prevented such drastic action and provided a solid base for budget planners to build on this year, said Susan Pearce, vice president for college advancement.

Although there are no immediate plans to restore the eliminated positions, more faculty and staff will be added as the financial base of the college is strengthened over the next five years, officials said.

“The future looks very nice,” Pearce said. “We’re feeling quite good about it, naturally.”

Last year, the outlook was grim.

Shortly after U.S. News and World Report named Whittier among the best small colleges in the nation, officials said that the college had been forced to use reserve funds to make up operating deficits averaging $500,000 in nine of the past 11 fiscal years. As a result, the reserve fund had been reduced by more than $4 million to $200,000, not enough to cover the projected deficit.

Pearce said Whittier College had been dipping into its reserves partly because it spent heavily on new programs over the past decade, including the liberal arts program that earned national recognition. Also, it took over the former Beverly School of Law, turning it from a nonaccredited institution into a law school that is accredited by the American Bar Assn.

Officials believe that the budget problems were aggravated by the Oct. 1, 1987, earthquake.

The campus suffered only minor damage, but the surrounding community suffered heavily and freshman class enrollment at the college dropped to 256 in September, 1988, from 336 the year before.

When some prospective students saw rubble and barriers blocking off dangerous areas around campus, they decided to go elsewhere, officials speculated.

According to Pearce, the earthquake cost the college $1 million--$500,000 to repair damage not covered by insurance and $500,000 in lost tuition from the drop in enrollment.

But last spring, as the college and residents in the surrounding area finished earthquake repairs, applications for admission were up. The college had received 940 applications by March 30, compared to 792 at the same time the year before and 910 at the same time in 1987.

Undergraduate enrollment increased by 30, to 1,012 this year, which fulfilled estimates in this year’s budget. Pearce said college officials are predicting modest increases in enrollment, which would increase revenues from tuition. By 1993, undergraduate enrollment is expected to reach 1,200.

Meanwhile, Pearce said last year’s donations, mostly from alumni who heard and read about the college’s financial plight, increased by 45% to $5.88 million. About $1.3 million went into the general operating budget.

When budget projections for this year were recently released, college officials and faculty members said they were able to breathe a sigh of relief.

“The mood here compared to a year ago has changed almost 180 degrees,” said geology professor Dallas Rhodes, chairman of the faculty. “Last year we were trying to figure out how we were going to make the cuts. Now we’re trying to figure out how we are going to expand to fill the needs.”