Key Takeaways
- • Kenyon College's $15 million operating deficit was the focus of a campus information session led by Vice President for Finance Todd Burson and Vice President for Advancement Keith DiDonato.
- • Tuition and board now supply roughly 72% of the operating budget, while the endowment contributes roughly 22%, according to Burson.
- • Financial aid expenditure has risen roughly 42%, or about $20 million annually, over five years, as the first-year discount rate climbed from an average of 45.3% to 70% per student.
- • The endowment returned about 16% this fiscal year, which Burson described as a particularly strong year rather than a baseline.
- • Administrators signaled potential increases to employee healthcare premiums and said budget models have repeatedly missed actual spending since COVID-19 and 2021-22 overenrollment.
Summary
Vice President for Finance Todd Burson and Vice President for Advancement Keith DiDonato hosted an information session on Tuesday, as reported by The Kenyon Collegian, to discuss the college's finances. Burson outlined the history of Kenyon's finances over the past decade and the current $15 million deficit, while DiDonato addressed the college's forward plans and the state of alumni giving.
Burson described a budget increasingly reliant on the endowment. Tuition and board account for roughly 72% of operating revenue this year, down in relative terms, while the endowment provides roughly 22%. The fiscal year produced about a 16% endowment return, but Burson qualified that this was a particularly good year for the fund.
Financial aid is a central cost driver. Over the past five years, financial aid expenditure has grown roughly 42%, an increase of about $20 million to the annual budget. Burson attributed this largely to a higher first-year discount rate, the share of a student's tuition covered by institutional aid and scholarships, which rose from an average of 45.3% to 70% per student. Asked whether reducing aid had been discussed, Burson said the college constantly weighs how much it can afford in financial aid against salary increases for staff and faculty, calling these "all tension points in our budget."
Burson also said the college will consider increases to employee healthcare premiums, though when pressed on what those increases would look like, he said, "We are working on that right now." He acknowledged that the college's 10-year budget projections have not accurately forecast spending, citing COVID-19 and overenrollment in 2021-22. "Especially in the last six years, modeling has just been thrown out the window," he said.
On fundraising, DiDonato reported a 1% increase in alumni participation in the endowment campaign over the past year, while peer institutions such as Denison University saw declines over the same period. Burson projected steady enrollment growth of roughly 20 students per year over the next decade. He said the college will not rely on austerity alone or on enrollment growth alone, and will instead pursue a combination of cost savings and strategic investment.
Burson described a budget increasingly reliant on the endowment. Tuition and board account for roughly 72% of operating revenue this year, down in relative terms, while the endowment provides roughly 22%. The fiscal year produced about a 16% endowment return, but Burson qualified that this was a particularly good year for the fund.
Financial aid is a central cost driver. Over the past five years, financial aid expenditure has grown roughly 42%, an increase of about $20 million to the annual budget. Burson attributed this largely to a higher first-year discount rate, the share of a student's tuition covered by institutional aid and scholarships, which rose from an average of 45.3% to 70% per student. Asked whether reducing aid had been discussed, Burson said the college constantly weighs how much it can afford in financial aid against salary increases for staff and faculty, calling these "all tension points in our budget."
Burson also said the college will consider increases to employee healthcare premiums, though when pressed on what those increases would look like, he said, "We are working on that right now." He acknowledged that the college's 10-year budget projections have not accurately forecast spending, citing COVID-19 and overenrollment in 2021-22. "Especially in the last six years, modeling has just been thrown out the window," he said.
On fundraising, DiDonato reported a 1% increase in alumni participation in the endowment campaign over the past year, while peer institutions such as Denison University saw declines over the same period. Burson projected steady enrollment growth of roughly 20 students per year over the next decade. He said the college will not rely on austerity alone or on enrollment growth alone, and will instead pursue a combination of cost savings and strategic investment.
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