The Richmond Register

Local News

March 5, 2010

Berea College finding ways to balance budget

RICHMOND — Berea College has been forced to find innovative ways to balance its budget during these tough economic times.

For a college that relies on its investments for 80 percent of its income, with 10 percent coming from annual gifts and  the 10 percent from state and federal scholarships, trying to make ends meet during a recession has taken careful maneuvering.

“The economic collapse of the fall of 2008 and the winter of 2009 hit all businesses, colleges and home owners very hard,” said Berea College president Larry Shinn. “In higher education, there wasn’t a school hit as hard as us, because of the way we’re funded.”

Berea College found itself in a position where it needed to reduce its budget from $43 million in 2008-09 to $36.2 million by 2011-12.

A task force was put together to find ways to reduce the budget, while keeping alive the school’s mission of promoting Christian values and providing tuition-free education to students with limited economic resources.

The task force presented three scenarios to the board of trustees, but a fourth scenario, which took aspects from all three scenarios, was accepted last Saturday.

The main focus is to have a flexible and sustainable budget, said Shinn.

Among the new ideas was to begin a retirement incentive plan. Of the roughly 500 faculty and staff members, 107 met the requirements of being over 55 and having worked full-time at the school for 10 years.

Forty-three employees took the early retirement.

Of those 43 positions, 16 will be eliminated and the other 27 will be filled at lower pay.

The college, which currently has 1,530 students, will increase enrollment to 1,600 next year. Many of those students will be transfers who will take upper level courses that already are smaller in size than other classes.

Transfer students bring more opportunities for Pell grants, which will bring more money to the school, said Shinn.

Berea also is looking into increasing enrollment to as high as 1,800 by 2013.

Fewer instructors and more students will increase the faculty-to-student ratio only slightly, Shinn said, from 10 to 1 to 12 to 1.

Berea is changing its calendar to include a 15-week semester each spring and fall, adding an extra week to the current semesters. The typical short-term semester will be moved from January to May.

The calendar change alone maximizes access to federal and state dollars and will save the school $300,000 a year, Shinn said.

Another change includes creating larger academic departments, so that instead of 27 departments with 27 department heads, there will be fewer departments with more faculty per department.

That change will open the door for instructors to teach in multiple departments, Shinn said.

With 70 percent of the school’s budget going to employees, the changes in staff, along with the other moves, has helped the school avoid $2 million in budget cuts, Shinn said.

He said the school already has accounted for about $6 million of the $6.8 million that needed to be reduced and is looking at ways to find the additional $800,000 to $900,000 to cover the 2011-12 school year.

Tim Mandell can be reached at tmandell@richmondregister.com or 623-1669 ext. 6696.

 

1
Text Only
Local News
  • 2-11 Mangan.jpeg Man indicted in I-75 wreck that killed two

    A man who police believe started the chain of events that led to the deaths of two people on Interstate 75 in February was indicted on several felony charges Wednesday in Madison Circuit Court.
    Bryan M. Mangan, 56, of South Bend, Ind., was indicted on six counts of first-degree wanton endangerment, tampering with physical evidence and operating on a suspended license.

    April 24, 2014 2 Photos

  • Man charged with reselling employer’s equipment

    A man who worked for a local satellite TV company has been charged with ordering extra equipment and selling it online.
    Charles William Hensley, 39, of Manchester, worked for the Multiband Corporation at its Richmond office, according to a Richmond police report.
    Multiband maintains DIRECTV’s installations, service and upgrades for single-family homes in 20 states and commercial sites nationwide.

    April 24, 2014

  • Saturday is National Drug Take-Back Day

    A nationwide initiative to dispose of prescription drugs in a safe manner will take place Saturday.
    Three Madison County sites are available for residents to get rid of their unused, unneeded or expired prescription drugs as part of the eighth annual National Prescription Drug Take-Back Day:
    • Richmond Police Department, 1721 Lexington Road, box is outside by the front door.
    • Kentucky State Police Post 7, 699 Eastern Bypass, across from the EKU stadium, box is inside at the front door.

    April 24, 2014

  • 4-25 Revue 1.JPG Retro Radio Revue

    “Stan O’Donnell’s Retro Radio Revue,” presented by Rose Barn Theatre, will be performed at 7:30 p.m. Friday and Saturday at Gillum’s Sports Lounge in the Richmond Mall.
    The production focuses on the performers of the show and the follies and chaos that take place as the unexpected ensues. Local musical performers from Madison County will be showcased throughout the production.
    Gillum’s will provide a full menu service and cash bar beginning at 5:30 p.m.
    Tickets for the show are $15 and available at the door or in advance at www.rosebarntheatre.org.
    The event is a fundraiser for the nonprofit arts organization.

    April 24, 2014 3 Photos

  • 4-25 Crit Luallen.jpg Luallen says no to 2015 governor’s race

    After months of deliberation, former state Auditor of Public Accounts Crit Luallen announced Thursday she will sit out the 2015 race for governor.
    The announcement disappointed friends and associates who see Luallen as an able and experienced administrator — she served in six gubernatorial administrations — but also someone with the character and integrity to restore confidence in government.

    April 24, 2014 1 Photo

  • Blue Grass Army Depot sponsors 5K

    The Blue Grass Army Depot is hosting a 5K run/walk Saturday in support of National Sexual Assault Awareness Month.
    The no-entry-fee event will begin and end at the depot’s new sports complex ball fields, according to a news release from the installation. Preregistration is available online at www.bluegrass.army.mil or starting at 9 a.m. the day of the event.

    April 24, 2014

  • 4-24 UKatWaco1.jpg Wildcats encourage Cardinals to work hard in school

    University of Kentucky student athletes Kastine Evans, a guard on the women’s basketball team, and Jon Hood, a guard on the men’s team, stopped by Waco Elementary School on Wednesday to talk about the benefits of working hard in school.

    April 23, 2014 4 Photos

  • Mayor, commissioner pay changed

    The Richmond City Commission approved 4-1 a new pay scale for the mayor and commissioners at a special-called meeting Wednesday morning.

    April 23, 2014

  • 4-24 Lorenzo McWilliams.jpg Harrodsburg to get old Richmond police mobile computers

    Richmond is donating to the city of Harrodsburg eight of 39 old computers formerly used in police cruisers.

    April 23, 2014 1 Photo

  • 4-24 HOSAblooddrive.jpg Health science students organize blood drive

    Aside from the gift cards and free snacks, 50 Madison County high school students have other reasons for donating 35 pints of blood Wednesday to the Kentucky Blood Center at Madison Central High School.

    April 23, 2014 1 Photo

AP Video
US Proposes Pay-for-priority Internet Standards Wife Mourns Chicago Doctor Killed in Afghanistan FDA Proposes Regulations on E-cigarettes Kerry Warns Russia of Expensive New Sanctions Mideast Peace Talks Stall on Hamas Deal Cody Walker Remembers His Late Brother Paul Grieving South Korea Puts Up Yellow Ribbons Raw: Kerry Brings His Dog to Work Raw: Girls Survive Car Crash Into Their Bedroom Three U.S. Doctors Killed by Afghan Security Yankees' Pineda Suspended 10 Games for Pine Tar Colleagues Mourn Death of Doctors in Afghanistan Ukraine Launches Operation Against Insurgents Obama Reassures Japan on China Raw: Car Crashes Into San Antonio Pool Time Magazine Announces Top Influencers List Raw: Angry Relatives Confront SKorea Officials Bigger Riders Means Bigger Horses Out West Yankees Pineda Ejected for Pine Tar Deadly Fungus Killing Bats, Spreading in US
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

Should Richmond rezone the southwest corner of Main Street and Tates Creek Avenue to B-1 (Neighborhood Business) with restrictions to allow construction of a financial services office?

Yes
No
     View Results