To the Editor:
I have known Joe Asch ("The Administrative Life Initiative," April 2) for a long time, and I am sure he recognizes, as the owner of the River Valley Club, the difficulty of managing the finances of a complicated institution in a volatile economy. Nonetheless, I take issue with some of the exaggerated statements used in his recent column describing the administration at Dartmouth.
In 1999, Dartmouth spent just under $300 million on academic and student programs, scholarships, and research, which accounted for 72 percent of the budget that year. By 2003, the cost of these items had increased to $438.5 million and 75 percent of the budget. By contrast, administration cost $16.8 million in 1999 and $26.5 million in 2003, accounting for just 4 percent of the budget in both years. For 2004, we anticipate an increase in total expenses, excluding sponsored research and financial aid, of just 1.2 percent, and administrative areas will see no increase in their non-compensation budgets.
Mr. Asch questions specifically the expansion of the childcare center. The cost of constructing the addition is neither included within the administrative line nor "hidden away ... as a 'real estate investment.'" As a 2004 capital expense it does not appear in the statement but will appear as an increase in fixed assets in the next report. The center, known for the quality of the care it provides, serves faculty and staff, and uses a sliding fee scale that is subsidized by the College. The expansion addressed a significant need within the community.
The administration has worked closely with a faculty committee to address budget concerns and has also sought regular student input. As a result of careful management, our financial situation remains strong. The endowment has grown from $1.5 billion in 1999 to $2.4 billion today, and we have recovered nearly all the ground lost to the dip in the markets of two years ago. We have addressed budget problems directly and with a clear sense of priority.
Over the past five years, the College has invested resources to protect Dartmouth's special undergraduate focus consistent with President Wright's stated priorities. To address one of Mr. Asch's examples, in the five years that ended in 2002, Dartmouth saw the second highest percentage increase in its library operating budget among the 114 largest campus libraries in the U.S. and Canada. We have pursued a faculty compensation program to increase faculty salaries so as to remain competitive. We are moving ahead with an important facilities program to ensure the continued quality of the learning and residential environment. We have increased support to student programs including athletics. Record numbers of students are applying to the College, and we have significantly strengthened our financial aid program to keep Dartmouth accessible. As a result of the efforts of many dedicated members of the College community we are effectively managing our resources while continuing to build programs and facilities that will keep us in a leadership position well into the future.
