College must 'maintain momentum' in face of crisis

Although global credit markets finally are showing signs of thawing, the college must plan "thoughtfully and seriously for what may be a prolonged and significant economic downturn," President Philip A. Glotzbach has told the Skidmore community in several recent communications.

"From an absolute perspective, it seems clear that we are likely to experience some rough going in the months ahead," Glotzbach noted. "From a relative perspective, however, Skidmore is as well positioned as most colleges, and better than many, to navigate these challenging circumstances.

"Even as we attend to the current financial exigencies, we can and must maintain the momentum that has characterized the college in recent years," Glotzbach continued. "This is a moment when creative thought really does matter, when it is imperative that we calmly and wisely survey the dramatically changed world that confronts us and be prepared to seize those opportunities that are still available to us."

Working "diligently and responsibly" and "without any sense of panic or alarm," the Administration is meeting with the campus Institutional Policy and Planning Committee and board of trustees to draw up plans for confronting the likely consequences of the financial crisis, Glotzbach said. These include:

• a decline in interest earnings from short-term investments on cash receipts such as tuition and fees;
• a reduction in the value of the college's endowment;
• a slowdown in charitable giving;
• increases in the cost of energy and other base operating expenses;
• a rise in the demand for financial aid among students.

Glotzbach said the college will continue to move ahead with such projects as the new Arthur Zankel Music Center, for which the construction funding is substantially in place, but "we will need to be cautious about beginning any major new undertakings." In the near term, he added, the focus "must be on maintaining our budgetary commitments to core programs such as financial aid and faculty and staff compensation, both of which receive considerable support from the Annual Fund."

"Thus far, our endowment has performed better than those of many of our peers, and it is both well-managed and well-diversified," Glotzbach said. "We have good controls on our spending and access to sufficient funds to meet our needs. Finally, and perhaps most importantly, our admissions picture remains strong."

"Throughout our history, we have shown the ability to advance important strategic initiatives by focusing our attention and limited resources on our highest priority objectives," Glotzbach observed. "For example, for many years we have competed successfully, for students and faculty, with schools that have two and three times our resources. We retain the capacity to continue doing so today-to keep moving forward, even in these difficult times."