College Working to Eliminate Operating Deficit
King’s College was faced with having to reduce a large portion of the current operating deficit by Dec. 1, 2012. The goal was to cut $700,000, and Fr. Ryan, president of King’s College, said that the school is working to meet that goal.
The College estimated a $1.8 million operating loss for 2013. In October, Fr. Ryan asked the faculty council to come together to form ideas to reduce the deficit to $1.1 million, which would be in line with that of the previous two years.
In addition to the council, the College’s staff came together and provided Fr. Ryan with suggestions of how to lower the operating loss.
“We’re looking over those suggestions right now,” Fr. Ryan said. “There are some good ideas there.”
He said that there will be no layoffs as a result of the cuts. He also believes that the operating loss will not affect the College’s progress. He said that the school has sufficient operating cash to continue operations without a problem.
Ryan said that the College experienced the same “bump in the road” that many families experienced during the recession of 2008.
In the future, the College wants to avoid operating losses. Fr. Ryan looks at this as a learning experience and said that the administration has made progress on their reporting systems in the last year. He also said that they will now be able to track and determine their financial position in upcoming years because of the progress that has been made in their revenue tracking systems and financial reporting systems, and also because of better understanding of the effect that financial aid has on revenue.
“We are just going to be more cautious on how we deploy our resources,” Fr. Ryan said.
He is optimistic about the future of the school and its finances, stressing that he and the administration know where they stand. Fr. Ryan is confident that their plan will bring them to a place that will lead the College into a position of financial strength, competitive salaries for employees and the ability to begin strategic initiatives.
“I’m confident that we know where we’re going and have a plan in place to get us there. We’re going to be better than we ever were,” Fr. Ryan said.
He stressed that, in local surveys, King’s College usually rates as 1st, or 2nd behind the University of Scranton.
“Our reputation has never been stronger. Our enrollment has never been stronger,” Fr. Ryan said.
The administration believes that it will be in a strong financial position by 2014.
Fr. Ryan said that he is glad that the past missteps were made in helping the students, and that he is not ashamed to say that the extra money that the administrations spent went to students and employees, rather than to stock holders. The College’s mission is to give students a base to grow, to be lifelong learners and to be responsible citizens and mature adults.
“We’re focused on that mission and will be stronger because of the learning that took place over the last year,” Fr. Ryan said.