Published: February 26, 2009

On Feb. 18, Rev Robert R. Grimes, S.J., dean of Fordham College at Lincoln Center (FCLC), explained to the College Council how the effects of the economic crisis are beginning to manifest at Fordham. Discussing budget cuts and sinking endowments, Grimes described the precarious financial state of the university, but said that he remains optimistic.

“We are in a state of tremendous uncertainty for next year,” Grimes said. After establishing that “things look good” right now, he reminded the group that it is very possible that Fordham’s situation may not be so sound by next school year. “We are experiencing volatility in this business that I have never seen before,” he said.

Freshman applications for next year are up three percent over last year; as of Jan. 26, FCLC had received 5,499. Grimes said that final assessment could not be made until May 1, which is the deadline for acceptance. He mentioned that in May 2008 FCLC was significantly over its target for first-year students, but over the summer, many students rescinded their acceptances, leaving the university below target by August. Grimes used this example to illustrate the level of uncertainty involved in Fordham’s finances this year.

Grimes said that the university will have a balanced budget this year but will not enjoy the surpluses that it experienced in past years. As far as the 2010 budget, Grimes said that the university has already been making a lot of cuts and will continue to make cuts. As part of a resolution made by Rev. Joseph M. McShane, S.J., president of Fordham, Grimes said that the cuts are only coming out of operational budgets, not out of personnel lines. While some faculty positions that have opened up have not been filled, no faculty have been laid off and the university “has no intention” of laying off faculty members.

“The university has a commitment to the people that are here,” Grimes said.

This mantra applies to students as well, especially to those who are experiencing financial difficulties. Grimes reiterated an item from the last meeting held in the fall semester and urged faculty to refer any student who is struggling financially to the Office of Financial Services. According to Grimes, Fordham’s main scholarship endowment is “underwater,” meaning that the amount of the endowment has decreased to the point that it is now worth less than the original gift. New York law states that institutions cannot spend from endowments that are underwater. Grimes said that the students who receive these scholarships will not lose them; instead, the money will come out of a financial aid contingency fund established early in the fall intended to help students financially through the economic crisis.

Grimes mentioned a few areas in which departments could cut back on expenses. He said that after calculation, photocopying proved to be a large expense, totaling in six-figure digits. He told department chairs to look closely at their photocopying budgets because “the money isn’t going to be there next year.” As evidenced by the lack of snacks, Grimes said that food and beverages are not to be served at any University-funded meetings. He also encouraged faculty to turn off their computers and lights when not in their office in order to save on electricity expenses.

“[Learning to save money is going to be a] matter of a change of culture,” he said. “Everyone is being hit, not just the academics. The deans are keeping close watch that no one is unfairly targeted.”

Despite all of the less than inspiring news, Grimes said that he is “not that pessimistic [about the financial future of Fordham].” He said he thinks that the university is in “reasonably good shape, given all the bad news.” Grimes said, “Every indication is that next year’s freshman class will hold up… We can weather this.”