Hamilton College
Skip Main Navigation
Skip Section Navigation Office of the President
Home Page Curriculum Vitae Alumni Review Profile Alumni Review Column
Summer 2009 Office Hours and Staff Senior Staff List of Trustees List of Presidents 2009 Strategic Plan President's Letter
September 2009 Community Reports Diversity 2009-10 Budget Summary President's Statements Board of Trustees Community Outreach Campaign
Contact Information
Office of the President
315-859-4105
Office of the President

A View from College Hill

Economies

by President Joan Hinde Stewart

As I write these words, the economy is a major preoccupation on College Hill, just as it doubtless is in many of your own homes. Given the financial uncertainties and volatility facing the nation and the world, circumstances will undoubtedly have evolved by the time this issue of the Alumni Review reaches you. But I can nonetheless give you a sense of our situation and of our guiding principles and deliberations.

During a recent open meeting with parents on Family Weekend, I commented on the old romantic notion of colleges as ivory towers where contemplation, critical thinking and learning go on far from the contingencies of everyday life. There is happily some truth to that, and it is important to preserve the characteristics of the academy that enable it to cultivate the understanding of America's youth. Society is served by giving beautiful minds — those of students and faculty alike — a place for thinking, imagining and creating.

But on a more practical level — and especially in this economy — it must be acknowledged that everything we do on our hilltop is influenced by the world around us. So while goals are lofty, realities are shaped in part by forces beyond us. My role, and that of College staff and trustees, is to evaluate changing circumstances and to protect the quality of a Hamilton education so that it remains worthy of the investment families are making — and to do so in a way that ensures the long-term financial health and integrity of the College.

Naturally, then, the potential impact of the current redrawing of the financial landscape was discussed at our October Board of Trustees meeting, and I have also addressed the situation with faculty and staff. I began at each of those meetings — and I begin again now — by reiterating that the College is in a secure financial position.

Most of you are aware that Hamilton recently completed a capital campaign that raised $183 million, largely for programs, facilities and student financial aid. Seventy-five percent of Hamilton alumni gave to that effort, and for that we are most grateful. The success of the Excelsior campaign, along with scrupulous and responsible stewardship of existing resources, superb management of our endowment by trustees and alumni, and the College's growing reputation, have combined to put Hamilton in a strong position from which to weather the current financial storm. While the economic downturn affects our endowment and endowment income, our investments are diversified. We are monitoring the funds in which our necessary operating cash is held, and these funds are liquid, allowing the College to cover essential expenses. But of course we don't know how long or how severe the storm will be. The College's horizon is not 10 or 20 years, or even 50; founded two centuries ago, Hamilton will be handed down to new generations for centuries to come. That is why our perspective is the long term.

As we plan for our future, we will sustain the things most important to the identity and mission of the College, including the quality of the academic program and student services, financial aid, competitive compensation for our employees, and reinvestment in existing campus facilities. But there will be pressure on our resources in all of those areas, and particularly on our ability to provide financial aid. We know that we must increase the financial aid budget, since we remain committed to meeting the full demonstrated need of all enrolled students. As a step in that direction, the Board voted to allocate $1 million from last year's budget to the endowment for financial aid.

But there will be further challenges. You doubtless are aware that the tuition, room and board we collect do not in fact cover the cost of educating each student. The real cost of operating is around 40 percent higher than our fees, and the difference comes mainly from endowment and annual giving. As I mentioned, our endowment is inevitably affected by market factors. This year, moreover, we are planning on $6 million from the Annual Fund as a critical part of our operating budget for financial aid and student programs. Our office of Communications and Development is working with trustees and alumni to ensure that Hamilton remains a priority for their charitable giving.

We feel immense gratitude to those whose generosity has contributed to our current strength, and we are not simply going to be doing business as usual. We are in a secure position overall, but prudence and good sense demand that we plan for a possible lengthy economic slowdown. We are implementing measures to reduce expenditures, and we are exploring creative responses in all areas.

The strategic planning in which we are now engaged will help us sharpen our sense of priorities as we focus on mission, goals, strengths and challenges. Part of our planning strategy is to identify and act on the opportunities presented by the current financial uncertainty so that Hamilton is even stronger when equilibrium returns to the economy.