Dear Faculty and Staff,
As we exhale briefly post-graduation and look ahead to the summer and this fall, I wanted to touch base again with a word of thanks, and also a budget and financial update, which I hope will provide some context and expectations for the coming year.
Next year’s state budget has finally been signed into law, and our incoming freshman class has also come into focus. In the face of unprecedented admissions challenges nationwide, our rising freshman class will likely be the largest in six years when it matriculates this fall. This is unusual across higher ed – and it’s not just good luck. The incoming Class of 2028 is the result of exceptional work by our admissions and financial aid teams, and their partners across campus. Meanwhile, student retention also is ticking upward. As I often remark, retention is a powerful gauge of any institution’s overall trajectory. Ours is robust and getting better. This is also a reflection of our people – it is a tribute to our culture, and to the skill and effort of all of you who work to teach and support our students.
These are good developments – first, of course, for our students, but also for Longwood. But I must also be clear: the environment for higher education will not be calm anytime soon. And more broadly, in this historic election year there will be clouds of unease over every sector of American life.
Our challenge is to navigate Longwood through these difficult years with momentum for the far future. That means building a strong financial approach designed to operate at sustainable enrollment levels, not dependent on constant growth.
This is a daily focus for me and for every vice-presidential area. We are working to improve how we operate in areas ranging from procurement to energy to efficiently deploying philanthropy, and being disciplined and strategic in every area of the budget. I know that this isn’t --- and hasn’t been --- easy, but it has made a real difference. It means our budget for next year remains tight and disciplined, but built on a solid foundation. This work must continue next year, too.
The budget pressures we face can be mystifying because we have succeeded each year in growing Longwood’s total revenue. Our budget next year will be almost $150 million, or roughly 40% larger than a decade ago when I arrived. But operating budgets remain tight because virtually all of the increase annually goes to salaries and benefits. This makes sense because people are our most important resource – but also by far our greatest expense.
Thanks to state support, philanthropy and careful decision-making, we have managed to make much-needed increases to salaries year by year, while also keeping up with ever-increasing benefits, which are an enormous hidden cost driver. The Commonwealth in recent years also has “passed” salary increases – including three straight years with average increases of 5 percent. In addition, this past December there was a further 2 percent increase. However, the state does not allocate full funding for such increases, so Longwood has borne the rest, while simultaneously working to hold college costs low for students and families.
So I want to set expectations for next year. A strong freshman class helps tremendously. But tight budgets must prudently continue, and the priority for our modest pool for salary increases this coming year will be Longwood employees who currently are paid the least. That is also the state’s focus and the focus of various federal policies slated to take effect over the coming year.
Starting July 1, our budget for the University will include just over $1 million in total for salary increases. We will allocate half for classified employees, who if in good standing will receive a 3 percent increase, per state policy. The other half will be for faculty and A/P employees, but will not be across the board. In allocating these increases among faculty and A/P, vice presidents will be addressing urgent issues related to additional duties and salary compression.
I share these updates to be as clear as I can about where we stand – both our sources of strength, and the challenges faced by all of higher education, as well as the country altogether. Unmistakably, the Alma Mater continues to build momentum, and the future is bright. But there is continued hard work ahead, along with new successes to come, building on the devotion and dedication we share.
Many thanks,
TR