New budget shows little change




Campus Times
September 19, 1997

 

by John Keller
Staff Writer

The University of La Verne's annual budget for the 1997-98 school year was finalized in July and shows no significant change from last year's.

The University of La Verne's 1997-98 budget is nothing out of the ordinary, according to Steve Grey, chief financial officer. The budget has risen an average of 3 percent annually over the past several years and 1997-98 is no exception. The corresponding 3 percent rise in tuition is made more potable to students by an equal 3 percent increase in financial aid.

This year, the University brought in $47,998,094, 93.2 percent of which is from tuition, and is planing to spend, $47,973,815. Most of this expenditure, 58.3 percent, goes to pay salaries and benefits. A further 20.7 percent, $9,941,244, pays for operational supplies and services. Private gifts make up 1 percent of the University's revenue. This leaves $24,279 on reserve, compared to last year's $336,326.

According to the 1997-98 budget manual, the on-campus undergraduate program is budgeted on a base of 975 full-time students.

Proceeds from ULV's endowment, which just reached $20 million, are used exclusively to fund scholarships and are not considered part of the annual budget but is included under tuition. The endowment is a fund kept in investments. Only the interest is spent, which leaves the principal to provide future income.

Grey stated that the lack of funds for salary increases is a result of no growth in enrollment. When asked whether any programs could be cut to keep ULV's salaries competitive, Grey said no. The only options in order to give faculty raises are based on the endowment or fund raising. The University can not depend on gifts because "gifts are a one time thing," said Grey. In order to feel comfortable in giving faculty raises, Grey said that continual revenue is needed.

According to Grey, University Relations works actively on giving fundraisers to help the University's revenue.

"They're very active. We just don't have a large giving constituency base," said Grey.

Since ULV is a tuition-funded institution, the only way to give raises is by increasing tuition revenues. Still new programs have been added this year, programs include the new pool and water polo team.

Work on next year's budget will begin in October or November. The University can expect the same 3 percent increase and similar allocation of funds.



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