Comprehensive Fee Discussion (Matt Orlando)
- FY 2025/26 Operating Budget
- Sources
- 50% endowment dist
- 38% net comp fee
- 8% gifts, grants, and reserves
- 4% other
- Uses
- 62% payroll % benefits
- 31% goods & services
- 7% debt service
- Sources
- Subsidy Model: FY 26 Budget
- Operating budget: $250M
- On campus enrollment: 1,825
- Cost of attendance $136,920
- Comp. fee: $91,300
- Subsidy: $45,620
- 6 year CAGR (2019-2025)
- Cost per student increased by 5.5%
- Due to cost increases in payroll, health benefits, software, utilities, maintenance
- CPI (northeast) increased 3.7%
- 6.0% revenue growth
- Cost per student increased by 5.5%
- Endowment spending formula dependent on 12-quarter average
- Return objective: generate a steady stable stream of support for current operations while preserving the purchasing power of the endowment to support future generations of students
- Scholarships, instruction, general support, library & museums, others
- With and without donor restriction
Public comment
- How will financial aid be impacted?
- Bowdoin is need blind and meets full need
- Financial aid is factored in as part of the budget
- Financial aid is packaged in a backward-looking way – looking back on family’s income from two years ago
- A discourse we hear is that the school has an endowment of over $2 billion, so why can’t we buy/fund xyz then?
- The board can approve between 4 and 5.5% of 12 quarter average
- Risk of losing purchasing power
- Going to 5.5% is not of interest in this environment
- Software increased 9%. Mentioned Workday. Is there evidence of Workday being beneficial for the college in other ways?
- Can the endowment only spend a fraction of what it makes?
- Dependent on market value = what it gives and earnings on those gives
- Is there any situation where the college would dip more than 5%?
- Goes back to purchasing power
- Support for hourly staff?
- Structure to ensure we are leader in benefit and wages
- Refreshed annually, factors in inflation
- How will Trump’s policies affect the sponsoring of international workers?
- Still unclear
Break shuttle update
- Friday before Thanksgiving break, throughout the day
- Driving students as volunteers instead this year
- Need people to volunteer; those with licenses who feel comfortable can get van-certified
- Will likely still charter one coach bus, roughly $1,500
Reverse trick-or-treating updates
- Going to talk more about specifics during next week’s meeting
- Stay after today’s meeting and talk to Giovanna if you are interested