Benedict trustees OK pay increase

October 13, 2007

School expresses cautious optimism after years of financial difficulties

By JAMES T. HAMMOND - jhammond@thestate.com

Benedict College trustees approved a small salary increase for some low-paid employees, but full restoration of salaries to 2005 levels will have to wait another year.

Benedict trustees expressed cautious optimism that the worst of the school's multiyear financial crisis is behind them and 2007-08 will end on a positive financial note.

"I think we are seeing more transparency in our financial reporting," said trustee Anthony Burroughs.

Salaries were cut 5 percent across the board in 2005 when the college faced declining enrollment and shrinking revenues.

This year, the college undertook a major debt restructuring and has worked to reverse a slide in enrollment.

Trustee James Clark, who chairs the finance committee, said expenses are being kept under control as planned.

He said this year's results should show "a significant improvement in our financial position."

President David Swinton told the trustees that some instructors and assistant professors were being paid below the minimum level in the college's guidelines. He proposed to raise those faculty members to the minimum salary in the guidelines for their rank.

But some trustees, including Darrell Jackson and Lucille Whipper, urged Swinton to review all salaries at the lower end of the pay scale, not just faculty members. The trustees boosted the proposed salary pool to $200,000 from $150,000 and instructed Swinton to review compensation for nonteaching as well as teaching staff.

Brenda Walker, vice president for business and finance, said there are about 10 faculty members who might be affected by the salary review.

Interim chief financial officer Leonard Williams said the comprehensive salary review showed fully restoring all salaries to 2005 levels would cost about $700,000.

This fall, Swinton and Williams built their budget on an estimated 2,596 students. But 2,640 students have enrolled, and revenues have rebounded as well.

Enrollment peaked in 2002 at 3,005 students but then sank to 2,530 before rebounding this year.

Swinton said he would like to see enrollment restored to about 2,800 and retention improved in the upper-level classes.

As for finances, Benedict estimates it will have cash on hand in December of about $1.7 million, a major turnaround from recent years, when they had to dip into funds earmarked for the spring semester to get through the fall term.

But Swinton cautioned that the enrollment data shows the private, historically black college has not stabilized. While a larger-than-expected freshman class enrolled, retention of upper-class students declined.

And because freshmen are more likely to want an on-campus residence, Benedict had to refurbish dormitory space for the additional students. Some even had to stay in local hotels while their rooms were prepared.

The unexpected surge of freshmen actually added about $400,000 in costs to the budget.

Swinton said another review of salary restoration should be delayed another year, and the board accepted his recommendation.

The Benedict trustees also approved plans for the board members to collectively raise $1 million this year - an average $33,000 per trustee - in a challenge to alumni to raise a similar amount.

It was the first gesture proposed by new executive vice president for advancement Love Collins to energize the 31-member board to become major fundraisers for the institution.

Private fundraising had stagnated. But Collins reported Friday that gifts are running 44 percent ahead of the same period last year.

Collins also said that by Nov. 1, Benedict will have added to its Web page the ability for people to make contributions over the Internet. He said most institutions have experienced significant increases in donations after adding such a capacity.

Reach Hammond at (803) 771-8474.

Source: The State Newspaper

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