By Justice Newell (’23)
While 2021 still carries much of the baggage from its predecessor, it is time to look forward to what next year will bring. Fingers crossed, it will be better than last year. With that being said, Houghton’s 2021-2022 budget shows signs that it certainly will be!
In terms of what the budget looks like for the upcoming academic year, Mr. Dale Wright, the Vice President for Finance at Houghton, reports that 29% of the budget goes toward financial aid to students; 35% is allocated to paying Houghton’s personnel; 15% goes toward maintaining the campus and paying utilities; and the remaining 21% is distributed amongst smaller budgets, such as those for the academic departments.
As for where the money comes from to create the budget, together, tuition, fees, and room and board account for approximately 85%, with contributions, grants, and endowments garnering the rest of the budget.
In planning for the upcoming school year, Houghton’s budget reflects the unique situation that COVID-19 has presented, all while holding true to the enduring goal of providing a high-quality Christian education for an affordable price. To that end, Mr. Wright attributes the college’s success during these times to three important factors affecting its financial situation.
Firstly, Houghton has historically been “careful planning and manag[ing] expenses,” creating what Dean Marc Smithers referred to as a “balanced budget.” Essentially, a balanced budget just means that the expenses do not outweigh the revenue, or, the money earned. Secondly, though many colleges run on a tight budget, Mr. Wright explained that through the assistance of generous alumni and friends of Houghton, much of the financial burden placed on the college is offset. Likewise, the third factor for Houghton’s continued success is the relief provided by the federal government. Especially during times in which special precautions need to be taken to slow the spread of a pandemic, any financial support to help pay for personal protective equipment, like masks or disinfectants, helps keep the budget in check.
Though the world now knows how to combat the spread of COVID-19, this often means that institutions can expect a considerable financial burden to help with that mission. For Houghton and other colleges, this means that more funding is required in the upcoming year to help keep with current health and safety standards. In a joint statement from President Mullen and Mr. Wright, they said, “We have allocated increased funding towards technology, cleaning protocols, personnel and testing, to name a few areas. [And while it is a significant feature of the budget,] it is not a large percentage of the overall college budget. Further, a portion of these expenses have been partially offset by federal assistance.”
Aside from being records of Houghton’s financial history, the budget’s purpose is to provide students the best overall experience during their college years. From resetting the tuition to a 20-year low, to creating 90 new scholarships, to funding Division III athletics, and paying for residential life programming and student engagement opportunities, the budget is ultimately student-centered.
According to Dean Smithers, in his experience heading the Residential Life Office, Houghton would allot approximately “$10 per resident for residence life programming.” Moreover, part of the Residential Life funding comes from the clubs and organizations fee that students pay at the beginning of each semester, combined with additional money from the budget. So, it can be assumed that the same can be said for the 2021-2022 school year.
Though the configuration of Houghton’s budget has been relatively similar year after year, on occasion large changes are made, and their effects are felt throughout the campus and community. The most recent example of this is the decision to cut the lacrosse program at Houghton. While this change may dishearten many students and community members, Mr. Wright suggests that the reallocation of these funds toward “track and field, cross country and intramural programs [will] benefit a wider range of students” than before.
Though life has not yet returned to normal, the college’s financial situation indicates that things are looking up. In spite of all of these changes, students can expect a “normal-looking” semester – you know, all things considered.★