Not quite one year ago, when it became clear that the pandemic would be more than a temporary disruption, we set forth the goal to carry out the mission of the College while protecting the health and safety of our community, supporting our students and employees, and stewarding the long-term health of the institution. It is with much gratitude for your unfaltering energy and partnership that I can report to you today that we have not wavered from that goal.
While the course of the pandemic is far from certain, we are looking ahead with optimism that all students will be on campus next year, with a full residential program and traditional academic calendar. At its meeting last week, the Kenyon College Board of Trustees approved the annual operating budget — $167,810,000 for the 2021-2022 fiscal year — in anticipation of a return to largely normal operations. That said, we have learned much this year about the importance of contingency planning, and will have plans in place should the pandemic worsen once again.
The 2021-2022 budget reflects the following priorities.
Financial Aid. At almost $48 million, financial aid represents nearly 30 percent of Kenyon’s total expenses. We recognize that families may be experiencing added financial pressures this year and have increased our financial aid budget 9 percent to ensure that a Kenyon education remains within reach. In addition, beginning in fall 2021, Kenyon will reduce the work-study expectation in need-based financial aid packages and replace it with additional grants; not only will this make work-study expectations more achievable, it will afford students the flexibility to pursue campus work opportunities that offer meaningful connections between their academic interests and the world of work and career.
General Salary Adjustment. Employee compensation is the largest single item in the College’s budget. After forgoing the general salary adjustment last year, employees will receive a modest across-the-board increase of 1.25 percent for 2021-2022. Additional funds have been set aside to target salaries lagging in the marketplace. As a reminder, increases for union members are dictated by contract.
Retirement Benefits. Last year, we made the difficult decision to suspend the College’s contributions to 403(b) retirement and retiree health care programs. I am pleased to report that those contributions will be reinstated effective July 1, 2021. In addition, one third of the 403(b) contribution suspended during the 2020-2021 year will be restored — instead of a 9.5 percent match throughout 2021-2022, employees will receive a 12.5 percent match — with the aim of replacing the full amount over three years.
Employee Performance Program. In 2018, the College introduced an Employee Performance Program to provide professional development opportunities, a transparent and competitive compensation system, effective and meaningful review processes, and recognition of employee excellence and achievement. The first cohort of triennial reviews is scheduled to take place this year, with any recommended salary adjustments or bonuses to go into effect July 1, 2021. Developing and sustaining a strong employee community remains a top priority, and this program will proceed as scheduled with dedicated funds to recognize outstanding performance.
Position Vacancies. We will continue to manage our vacant positions to yield savings where possible, while maintaining the flexibility to make critical hires.
Building and Equipment Improvements. In 2020-2021, we reduced reserves for building and equipment repair and replacement, funding only those improvements needed to ensure safety and prevent major structural damage. We have returned those budgets to their pre-pandemic levels for 2021-2022.
To fund these priorities, the College has set the charges for the 2021-2021 academic year at $76,620, a 3.75 percent increase over the charges announced this time last year, before the pandemic. A college education is one of the largest investments many families make, and any adjustment to our charges is made with considerable care. This increase reflects our commitment to meet 100 percent of students’ demonstrated financial need, and our continued investment in the people who make Kenyon excellent.
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If you attended the faculty meeting or employee forum earlier this week you know that, just as there has never been an academic year quite like this one, there has never been an admissions cycle to match the one we are in now. Kenyon’s applicant pool is very strong. The students we admit will have many compelling offers to consider, and many fewer campus visits and firsthand experiences to evaluate their choices. We all have a part to play in yielding these students, and it is more important than ever that we embrace every opportunity to connect with them in order to demonstrate Kenyon’s distinctions — the intelligence, warmth and attention of our community chief among them. Eighty percent of Kenyon’s budget is funded by tuition, and I thank you for bringing your best to this collective effort.
We have every reason to be optimistic about Kenyon’s future. And yet we must be clear-eyed about the precariousness of a shifting higher education landscape. To achieve our goals, we will need to continue to pull together. Our plans for 2021-2022 reflect our confidence in the Kenyon community’s ability to do just that.
Sincerely,
Sean Decatur
President