CFO Optimistic for a Balanced Budget in 2013
In December 2012 King’s College met its financial goal of reducing its deficit by about $700,000. While the College is still working to balance its budget, its success in reducing the deficit was threefold. These include campus-wide initiatives.
Chief Financial Officer John Loyack explained that the December financial goal was achieved in three ways. Estate gifts made up approximately one third. Similarly, about one third was attributed to the revenue being ahead of forecast. The remaining third was achieved through a series of small cost reductions across campus.
“Some of the [cost reduction] recommendations came from the new staff group,” said Loyack. The faculty council was asked to put forth suggestions of where to decrease funding. Small reductions were implemented across the College.
“It really was a full-campus effort to get to our goal,” said Loyack. “It was really great to see everyone work together to get it done.”
The College is in the early stages of developing a budget framework to meet its larger goal of balancing the budget in the next year. Loyack claimed that faculty feedback will remain important moving forward. This feedback has already showed that the last resort would be additional staff layoffs. “I don’t foresee further staff reduction,” said Loyack.
Instead, other areas of cost reduction, including a review of benefit plans and new staff fees, are under consideration. For now, many groups on campus are being asked to reduce their operating budget by about 5%.
“We’re trying to look at it over a three-year period,” Loyack explained. This year, the ultimate goal is to balance the budget. In years two and three, Loyack would like to get back to the point where there is room to expand the operating budget. He would also like to be able to fund salary increases for employees, as salaries have been largely frozen for the past few years.
“I’m highly optimistic that we’ll get the budget balanced this year,” said Loyack.