Financial woes
Budget committee formed in light of $7 million budget deficit
Amanda Hornick
Issue date: 12/12/05 Section: News
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President Dr. John Sellars has created a campus budget committee after an internal review revealed a budget deficit at Drury.
In an interview with The Mirror last week, Sellars said he has put together the committee to work on the university's budget, which took a hit after some alumni gifts were withdrawn and Hurricane Katrina forced utility prices up.
He did not specify the amount of the deficit nor what areas - if any - might face cuts to balance Drury's budget.
"The deficit is not actually a deficit in the operating fund, but in the capital account," Sellars said. "As a private institution, we depend on funds from alumni and other outside sources. Unfortunately, we had some gifts withdrawn after Sept. 11 and Hurricane Katrina, but our building projects (including Harrison Stadium and Lay Hall) were already under way."
Sellars said the actual process of building new facilities can take up to seven years, between putting the funding together, designing the architecture and actual construction.
When gifts were withdrawn, the university had already made the decision to move ahead with the projects that were under way.
Because of Hurricane Katrina, utilities also ran over budget.
"Katrina increased our utilities because natural gas prices were higher," Sellars said. "Schools like Missouri State also had the same problem with utility costs."
The new committee will include faculty, staff and students, and will be chaired by Rod Oglesby. Also on the committee will be Dr. Charles Taylor, Dr. Elizabeth Paddock and Michael Thomas, along with two student representatives who have yet to be determined.
The committee plans to complete its work by March 15.
The endowment fund, which provides many Drury students with the scholarships they need to attend the university, also is down from $100 million to $75 million.
While some students said they understand that some situations cannot be prevented, they are concerned about how the deficit will affect their education - and the price that they pay for that education.
In an interview with The Mirror last week, Sellars said he has put together the committee to work on the university's budget, which took a hit after some alumni gifts were withdrawn and Hurricane Katrina forced utility prices up.
He did not specify the amount of the deficit nor what areas - if any - might face cuts to balance Drury's budget.
"The deficit is not actually a deficit in the operating fund, but in the capital account," Sellars said. "As a private institution, we depend on funds from alumni and other outside sources. Unfortunately, we had some gifts withdrawn after Sept. 11 and Hurricane Katrina, but our building projects (including Harrison Stadium and Lay Hall) were already under way."
Sellars said the actual process of building new facilities can take up to seven years, between putting the funding together, designing the architecture and actual construction.
When gifts were withdrawn, the university had already made the decision to move ahead with the projects that were under way.
Because of Hurricane Katrina, utilities also ran over budget.
"Katrina increased our utilities because natural gas prices were higher," Sellars said. "Schools like Missouri State also had the same problem with utility costs."
The new committee will include faculty, staff and students, and will be chaired by Rod Oglesby. Also on the committee will be Dr. Charles Taylor, Dr. Elizabeth Paddock and Michael Thomas, along with two student representatives who have yet to be determined.
The committee plans to complete its work by March 15.
The endowment fund, which provides many Drury students with the scholarships they need to attend the university, also is down from $100 million to $75 million.
While some students said they understand that some situations cannot be prevented, they are concerned about how the deficit will affect their education - and the price that they pay for that education.
Article last update: 12/11/05 at 2:05 PM CST