Photo illustration by Peter Caty
As the economic state of the country continues to decline, it has become increasingly difficult for the University to deal with its own financial climate and continue to please everyone.
On Monday, students in desperate need of financial aid found a temporary relief in the most recent letter from University President Fr. Jeffrey von Arx, as students, alumni and community members looking forward to the addition of a new art museum on campus learned they would have to wait a year longer to see the fine art it promises to offer.
Although construction plans on the Bellarmine museum will be delayed, the University will direct more funds to financial aid in order to help families who are also struggling through this financial crisis.
A first letter on the economy was sent to students and faculty in October from von Arx. Now, as the situation continues to change from day to day, he has found it important to update the community a second time, as it heads into winter break.
‘While it is still too early to assess the precise impact of the economic downturn on Fairfield University, we are making progress on examining various scenarios and planning for different contingencies,’ said von Arx in the letter. ‘I want to reiterate that we remain in a healthy and stable financial position, thanks to our fiscally conservative budgeting policies and practices.’
The good news for Fairfield students is that the University understands that many of their families are dealing with difficult times as well, as von Arx stated that it will do its best to help these families survive.
‘The biggest impact will be on the ability of families to pay for a Fairfield education,’ said von Arx. ‘We are deeply committed to assisting currently enrolled students, as well as prospective students with their financial needs.’
He added that already 80 students have received increased financial aid for the current year, as funds have been ‘reallocated.’ Meanwhile, ‘for the 2009-2010 academic year, our budget plans include increased financial aid to meet this growing need.’
Applications remain in line with past years, as does fundraising, according to the letter.
The state of Connecticut also made an announcement on Monday that it will assist Fairfield students who are in danger of having to leave school because of economic troubles and increasing tuition.
Connecticut Gov. M. Jodi Rell revealed a low-interest student loan plan that involves several credit unions across the state. The state has already contributed $17.5 million dollars to the Credit Union League of Connecticut, which will begin to offer loans with interest rates between 5.75 percent and six percent, according to a press release.
Students who take the six percent rate will be allowed to defer payment for up to one year.
‘The national economic recession is hitting home on all levels and families across Connecticut are faced with the difficult decisions on what expenses to cut. Under this program, college tuition does not have to be one of them,’ Rell said.
These loans will be made to students who may not qualify for traditional loans or who may have already used up all their resources and are now having trouble paying for college costs,’ Rell added.
While the University may remain in good shape, its endowment has continued to suffer throughout the economic downturn that has plagued the nation.
Von Arx said that the endowment returns are down 20 percent from last year and, thus, will affect the upcoming budget negatively and will be even worse when the budget is made for 2010-11. The deficit was expected and, according to von Arx, contingency plans were already made in October.
Another negative impact of the smaller endowment returns is that the Bellarmine Museum construction work has been postponed and will not open until 2010. The museum was expected to open in spring 2009 and is planned to include artwork currently owned by Fairfield that it has acquired through donations, as well as pieces from the Metropolitan Museum of Art in New York City.
But according to von Arx, plans remain on schedule for the Jesuit residence construction project and the other housing projects, which include the construction of new dorms in both the Village and the Quad. The construction costs of the campus renovations is estimated to cost $75 million.
Earlier this week the University was granted two permits from the town of Fairfield allowing it to build on wetlands in the Village and build a four-story dorm in the Quad.
‘We hope to commence construction according to our plans; however, we will continue to evaluate the financing models and timing of when construction can begin and may adjust plans accordingly,’ von Arx said.
The University is also taking steps to prepare contingency plans that will allow for budget cuts in specific departments, mainly in travel and food costs.
Fairfield has not instituted a hiring freeze but ‘are evaluating open positions carefully and moving forward only with positions that are crucial and urgent.’
Von Arx plans on reporting to the community once again in January.
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