Enrollment strong but cost-cutting is ahead, trustees told at meeting

By Jacquie Powers

While Cornell's financial picture this year is solid, the administration is looking at both long- and short-term cost-cutting measures owing to the weakening economy, members of the university's board of trustees learned at their annual fall meeting on campus Oct. 19.

Taking part in the Cornell Board of Trustees meeting, Oct. 18 in the Community Commons are, (photo top) trustees Denise Meridith and Khary Barnes '02 (student-elected trustee); (middle) from left, trustees Robert Abrams, Robert Blakely, J. Thomas Clark and Michael Chiu; and (bottom) Provost Biddy Martin and board chair Harold Tanner. Photos by Frank DiMeo/University Photography

"We are facing serious reductions in our revenue streams, and while the budget is strong and stable this year, we expect next year to be a problem," President Hunter Rawlings told trustees at their first meeting of the academic year.

Rawlings said the administration currently is studying ways to cut costs throughout the university.

In other business, the trustees deferred action until further study can be done on selection of a site for a new life sciences technology facility.

Joanne DeStefano, acting vice president for financial affairs, reported that total assets in 2000-01 declined by $75 million, or 1.2 percent, primarily due to worsening market conditions. That was in a sharp contrast to the previous year, when total assets increased by 16.2 percent, primarily as a result of strong investment performance and significant contributions.

"Our results for fiscal year 2001 followed the national trend," DeStefano said. But, she added, "We did better than Standard & Poor's, and we are keeping expenses in line with total operating revenues."

DeStefano reported that Cornell ended the fiscal year on June 30, 2001, with total assets of $6.26 billion, total liabilities of $1.15 billion and net assets of $5.11 billion. Total assets decreased by $75 million, or 1.2 percent. Net assets declined by $159 million, or 3 percent.

On a positive note, Doris Davis, associate provost for admissions and enrollment, reported that the university's aggressive enrollment management strategy paid off, with a fall freshman enrollment this year for the first time in many years coming in almost exactly on target.

"Final freshman enrollment was 2,988, just 12 students under target," Davis said. "This was due to the construction of a conservative admit and yield model and aggressive management of the wait list, and speaks to the success of our overall enrollment management strategy."

She added, however, that ethnic and geographic diversity remained stable, and therefore are still a priority. The proportion of minorities in the fall 2001 undergraduate population is 29 percent.

"We need to become even more savvy about marketing the institution to undergraduates in our targeted populations," she said.