Bacow predicts balanced budgets as some staff laid off

    Tufts has laid off a small number of staff and administrators and has frozen salaries for employees earning more than $50,000, and now it predicts a balanced budget for the current and next few fiscal years, University President Lawrence Bacow said in a e-mail to the Tufts community on Wednesday.
    Bacow said the university projects its endowment to decline by 30 percent this fiscal year, five percentage points more than university officials had previously predicted. Individual schools are facing large challenges, and the university tapped in "a relatively modest amount of reserves" this year to help balance its budget, the message said.
    The e-mail did not indicate a specific dollar for budget cuts, but in November the Bacow estimated the university would need to cut $36 million from its budget.
    Undergraduate tuition and fees will increase 3.5 percent for the 2009-2010 academic year, the smallest rise in 45 years, Bacow said. Tuition next year will cost $39,280.
    The only policy-directed increase in the budget will go to financial aid, Bacow said. In anticipation of greater need among undergraduates, the university has increased the size of its financial aid budget by 12 percent, a roughly two percentage point increase from what had been predicted earlier in the fiscal year.
    The message stressed the university's focus on meeting the financial need of all current undergraduates. "To our knowledge, no undergraduate has had to withdraw from Tufts due to financial distress," Bacow said. "We have been able to work with every family to keep students in school, even when both parents have lost their jobs."
    The Office of Undergraduate Admissions accepted all students during the Early Decision process on a need-blind basis, which means that an applicant's ability to pay is not considered during admissions. Some had voiced concerns that the university would not be able to sustain need-blind admissions, which had been practiced on an unofficial basis for the Classes of 2011 and 2012.
    Bacow said a "small number of staff" across "some of our schools" and in central administration had been laid off. Public Relations Director Kim Thurler told Bloomberg.com that about 15 to 20 people had been let go.
    In his e-mail, Bacow also mentioned the possibility of eliminating certain programs and positions associated with them.
    In addition to freezing salaries for some employees, Bacow added, others will receive "very modest raises" in the coming year.
    Meanwhile, the annual fund is down seven percent "year-over-year," Bacow said.
    But the president conveyed a somewhat positive message in his letter. He pointed out that strong fundraising over the past few years has significantly expanded Tufts' coiffures and that the university is in a better position than many of its peers. "The bottom line," he said, "is that we are faring reasonably well under the circumstances."
    Editor's Note: Check back after spring break for additional coverage of the university's financial situation.