News Story
Andrea Laurita
Previous News Stories | Send mail to The Voice
Multnomah Raises Tuition to Combat Rising Costs
The financial aid department assists students with loans and financial advice. Cindy Aldrich discusses an award letter. --Andrea Laurita, photo
Multnomah's constitution states that tuition must remain as low as possible, but the institution must maintain excellence. The financial department does not raise the rate of tuition unless the current budget is not sufficient to keep the school in a good financial position. "It's a big process," Paul Griffin, senior vice president of finance, said. "We look at our cost increase and how to compensate faculty and staff. We compare ourselves with other institutions in the area, and we pray before we agree on the budget."
In addition to comparing Multnomah with schools such as Western Baptist College and George Fox University, the financial department uses "Focus" groups, usually comprised of selected students in leadership positions on campus, to conduct discussions and surveys. "We ask students what they believe would be reasonable," Mr. Griffin said. "Surprisingly, the students are more generous with their money than we are. They said that a 10 percent increase would be reasonable; we weren't willing to do that."
The process of increasing tuition includes setting a preliminary budget and having the Board of Trustees vote on the proposal after student graduation in May. If the proposal passes, the school's general budget will peak at $12 million dollars for the 2004-2005 academic year.
The general fund, though mostly weighted from student tuition payments, also consists of money pooled from several sources to allow Multnomah the opportunity to be a high-quality institution. Because of this fund, the school is able to attract and keep top-notch faculty, maintain facilities and keep technology current.
Approximately 55 percent to 60 percent of the general budget provides for faculty and staff salaries. The tuition increase for students will allow the faculty and staff to receive higher salaries to compensate for the cost of living increase.
Additional regulated expenses paid out of the general budget include school insurance, utilities, maintenance, postage and numerous other fees. This year, student financial aid amounted to approximately $825,000 of the general budget. This amount will increase by nearly 30 percent next academic year. Students who demonstrate financial need will gain greater support to offset tuition payments. The average financial aid package will increase $300 next year.
Benefits, such as medical coverage and a small retirement plan for faculty and staff who work more than 30 hours per week, are deducted from the general budget. "It costs $280 per month for full medical coverage for each employee," Mr. Griffin said. "I wish we could also provide for each employee's family, but we can't."
Student employment wages also deduct from the general budget. This year roughly 150 students worked on campus at Multnomah. As minimum wage increases 2.5 percent each year, the budget also must increase to pay these students. This year student wages made up $664,000 of the general fund.
Student tuition rates are the major contributors to the school's general fund, but several fund-raisers conducted each year help bring in additional money. The phon-a-thon adds approximately $50,000 annually to the budget. Student benefit banquets are held in Portland and Seattle, attracting nearly 600 people and contributing $150,000 toward student aid. Two million dollars each year come from donations primarily from generous alumni and friends.
School projects, such as the $2.8 million Student Commons addition or the planned renovation of Bradley Hall and Memorial Dorm, do not effect the general fund. Additional donations are allocated to complete these special projects.
Previous News Stories | Top Of Page
Send mail to The Voice| Journalism department website
© 2005 The Voice. No part of this publication may be reproduced in written or electronic form without prior written consent from the journalism adviser of Multnomah Bible College. All rights reserved.