Debt is something that affects countless American people and businesses. When faced with such a problem, individuals can make one of two choices: keep spending money and not worry about the consequences, or look at the situation practically and make cuts. Sadly, the average American goes with the first, but WCA has gone with the latter. Faced with a high debt to pay off, Westminster has cut their spending in hopes to be debt-free sooner.
Westminster, like most private schools, relies on donations to keep the school running so that tuition can remain relatively low. Donations cover approximately eight percent of WCA’s operating budget.
“For many years now, Westminster has relied only on giving to provide for new programs, new facilities, and managing any debt. As a Christian school, we exist as a ministry and are dependent upon our Lord to provide through the generous giving of the Christian community,” said Zach Clark, director of advancement.
This past year, Westminster’s goal of receiving $5 million through donations was not met. However, the amount given, $3.4 million, allowed the school to meet immediate payment requirements.
“We are tracking on our budget needs as it relates to giving, which means we have the cash needed on hand to meet our obligations. At this point, we need about $500,000 in giving prior to the end of July,” said Clark.
Westminster is implementing changes in order to reconcile their current problem.
“We revised our budget for the 2013-14 school year so that it is less reliant on donations. In order to maintain a balanced budget, we had to reduce expenses by $500,000. Because 80 percent of our operating budget is comprised of employee costs, unfortunately this is an area that had to be reduced in order to balance the budget,” said Todd Fuller, director of finance and operations.
Some personnel decisions were made in light of the budget deficit although specifics were not available. However, it is known that the athletic trainer, Kim Bruhn’s, contract was not renewed. The nighttime custodial staff was also reduced and teachers have had to pitch in with some aspects of cleaning their rooms.
“One of our main objectives during the process of revising the budget was to minimize the impact this would have on what happens in the classroom between students and teachers. The positions that we’ve eliminated because of the need to reduce expenses are all outside of the classroom,” said Fuller.
With present circumstances, it’s inevitable that students are upset with the administration’s decision. They have considered signing a petition.
“As a football manger, I’ve seen firsthand that Kim is more than just a trainer. She really cares about all the athletes and she’s always there to make sure everyone is okay and to keep them healthy. I will be sad to see her go because she is a huge part of the team,” said Julia Alpert, junior.
However, the students are not the ones faced with a high debt to pay off. The faculty did not receive as big of a raise this year as they did last year. It is uncertain whether or not employee benefits will be affected.
‘Faculty raises have already been announced at 2%. There is a possibility that the budget reduction may have an impact on benefits but we won’t address this until we see where enrollment lands in the Fall. If enrollment is strong enough, we may not have to impact any of the benefits. Conversely, if we don’t reach our enrollment projection, we’ll need to make additional adjustments to balance the budget which may include adjusting benefits such as the retirement match,” said Fuller.
Contrary to the American government, the administration strives to stay within their budget and not overspend. Although making budget cuts is difficult, it is necessary.
“Budget decisions are always challenging, because they almost always impact us personally. But, I’m very thankful for the wisdom and discernment of our school leadership making tough decisions that will keep Westminster flourishing and getting better every year,” said Clark.
