President Barry Mills answered the question, "Is Bowdoin Broke?," at a "fireside chat" hosted by the BSG in the Shannon Room of Hubbard Hall on Monday. Mills discussed a wide range of issues?from how middle class families will pay for college, to the status of current construction on the fitness center?during the hour and a half discussion.
Mills said during the talk that applicants from the middle class will have the hardest time paying for college. These students are normally less likely than lower-class students to receive financial aid, and they are also less likely than upper-class students to be able to afford the cost of tuition. Therefore, the impending financial crisis will probably make it more difficult for such students to pay for a college education.
"Now is a good time to be frugal," Mills said during the chat.
Mills said that construction will continue as planned on the Fitness, Health and Wellness Center, which is now scheduled to be completed in September or October 2009. However, it is unlikely that there will be any more significant additions to the Bowdoin campus over the next few years. Nevertheless, the College's plans to acquire land from Brunswick Naval Air Station should not be affected since that project is well into the future.
Mills said during the discussion that Bowdoin will not make public the current state of the endowment because the number fluctuates each day. Recently, a number of other schools have reported significant decreases in their endowments, including Amherst and Colby, which have reported a 25 percent decrease since June 30, and Williams, which has reported a 28 percent decrease since June 30.
"The real issue is our response to [the decrease in endowment] and how it will affect us, especially three, four or five years from now," Mills said.
Because Bowdoin draws a significant portion of its budget from the endowment, Mills said that at some point in the next several months, the College will organize at least one group of faculty, staff and students to discuss how Bowdoin can alter its spending. Last year, 24 percent of the College's entire operating budget was from the endowment.
Near the end of his talk, Mills made reference to the country's 2001-2002 recession. Although it was not as bad as the current financial situation, Mills said that a few layoffs were made on campus during that time. He said that one of the worst possible outcomes of the financial crisis for employees of the College is that they may have a more difficult time retiring.
Mills added that if the College's financial situation becomes dire, cuts could be made to the College's programs, including academics, athletics and residential life.
According to Mills, the College will continue to look to alumni for significant contributions. He emphasized that alumni donations currently allow the College to spend more on students than tuition can cover alone.
BSG Programming Co-Chair Derek Brooks '12, who helped organize the event, said, "The general direction that the economy is going makes me wonder if the alumni will donate with the same generosity that they have in the past."
However, Mills stated that contributions do not appear to have decreased since the financial crisis worsened in October.
In order to face this situation successfully, Mills stressed that members of the Bowdoin community will need to become more sensitive to the financial situations of those around them. Nonetheless, it is important that students do not lose their confidence in the school, he said.
BSG President Sophia Seifert '09 said that she thought the event went well.
"People asked really interesting questions," she said. "It's a good sign when you hear Mills or students respond to the other's point by saying, 'Oh, I hadn't thought of that.' It's good when students understand the decisions the other side will have to make in situations like these."
"Mills was responsive to the specific concerns of students but also showed how the things we don't normally think of as being financially important really are important," added BSG Vice President for Academic Affairs Sam Dinning. "This was a good opportunity to get the full picture."
Other students said they were surprised by the depth of information Mills was able to offer, despite the tentative state of the financial situation.
"It obviously can be frustrating when there are so few answers, but I think President Mills did a good job explaining that," said Eamonn Hart '09.