Community engagement and shared understanding

In the months before the current global COVID-19 crisis began, it was clear that ensuring Skidmore’s continued financial sustainability would require difficult decisions and a departure from "business as usual" to address significant financial challenges ahead. The global crisis has exacerbated those difficulties and the dramatic effects are being felt throughout our community and around the world.

The ongoing global COVID-19 crisis presents extraordinary financial challenges for Skidmore’s upcoming fiscal year 2020-2021. While a balanced base operating budget for fiscal year 2020-21 has been achieved and approved by the Board of Trustees, there remain many variables and uncertainties that might affect the budget in the months ahead.

The College lost significant revenue in the spring 2020 semester, including $4.5 million in refunds of room and board charges. More than $2 million in budgeted revenue will be lost due to the cancellation of summer 2020 programs and events, and the impact the pandemic will have on the fall semester remains to be seen.

In addition, many families of both new and returning students will very likely be affected by the severe economic downturn, almost certainly resulting in the need for more financial aid than previously projected.

To begin addressing these budget challenges, the College is temporarily furloughing some employees into the summer and has implemented a hiring freeze and a salary freeze — or no general salary adjustment (GSA) — for fiscal year 2020-2021. Budget managers have been directed to closely monitor expenses to maximize savings, and new construction projects that are not under contractual obligation have been postponed until further notice.

In the face of this challenge, it is essential that all members of the Skidmore community develop a shared understanding of the College’s current financial realities and play a part in the development of a long-term, sustainable financial model. The presentation here provides an overview of Skidmore’s budget structure, forecasts through 2025 that show significant projected budget deficits, and a path toward bringing the deficits to a manageable level.