Tag: finances

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Campus News

Optimism for the Future: Breaking Down Houghton’s 2021-2022 Budget

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.★

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Opinions

Living Within Our Means

Every day there are many of us that inflict damage upon this world with our highly consumerist lifestyles.

Courtesy of http://btr.michaelkwan.com/
Courtesy of http://btr.michaelkwan.com/

My parents blew their money and their credit scores before I was even born. When they began to think about the consequences of their financial decisions, it was too late. As a result, they resolved to raise frugal, financially responsible children. “Live within your means,” was one of their top five phrases of parental advice, along with “Marry rich the first time around” and “Always check your receipt before you leave the parking lot.” (See a pattern?) “Live below your means” was employed when times were tougher or when my siblings and I perched hopefully on a stationary 25-cent ride outside of K-Mart. Living below their means was their way of remedying the damage that had already been done. However, what if we instead understand “means” as all resources available to us?

By “means,” my parents are talking about income, monetary resources.  I’ve got that down (except maybe for the money going to my private, liberal arts education). I want to know what it would look like if we lived within all of our means. The earth, the waters, air. Electricity, fossil fuels. Paper, plastic, metals. Textiles, animals, food plants. These resources are not unlimited, and when we use more than the earth can provide and more than we need, we exploit the creation within which we live and further marginalize the people who manipulate and produce the resources to cater to our indulgent lives.

So, how does one practice life within the means of the world? Perhaps, considering our current state of environmental, fiscal, and social crises, we should be living below our means for a while. Sometimes I think that the only way to do this is get rid of all I have and run away into the woods like a wild animal. As tempting as that can be, I only know one or two people who might be ready and determined enough to make such a drastic change in their lifestyles. I do not happen to be one of them.

        I agree with the wise Disney character, who once sang, “We are all connected to each other in a circle that never ends.” As long as you live, you cannot escape other life. Our actions, my actions, your actions, have an impact. Our choices make this world what it is. My parents’ decisions not only affected who I turned out to be, but also the economies, communities, and ecosystems of which they were a part. So do yours. Most often, our decisions will affect those who are poor and marginalized around the globe.

Except for the few who will leave civilization completely behind in pursuit of communion with the earth, every person will always be able to do something more to live sustainably. In a way, this idea beautifully clarifies the connectedness of all things by defining the role that humans must play at this point in our history. Our role is to act on our awareness of the state of the world’s resources. Our role is to attempt positive change, taking one step at a time toward harmony. The beauty of this lies in our human capacity to persist in the convictions that proceed from genuine reflection.

In The Long-Legged House, Wendell Berry writes, “We have lived our lives by the assumption that what was good for us would be good for the world. We have been wrong. We must change our lives so that it will be possible to live by the contrary assumption, that what is good for the world will be good for us.” That is a call for radical change. Radical change exists on a continuum that ranges from extreme to reasonable. Change like this can happen one step at a time. Richard Meyer said, “We’ve got to be willing to put in sustained time and energy to create change, and we’ve got to remember that things move at a pace that may feel too slow. If we do nothing, the pace will be nonexistent.” Although he was talking about the educational system, I think this philosophy can be applied to all areas that warrant change. To begin acting on this, the question we must every day be asking ourselves is: How can I live in deeper peace with the world to which I am so closely connected, the world that supports me?

I wish my parents had considered their financial future (me) before it was too late. When I consider the way I live and consume, I will remember those who come after me. But more than that, I want to live in this moment peacefully and in harmony with the world, including the people and resources in it.