By William Hodgkiss
Vice-President for Business Affairs and Administration
The year 2000 began with a celebration of what did not happen. With many other organizations and entities, Lawrence had worked hard to prepare for the so-called Y2K crisis, and on December 31 we were ready to cope with whatever glitches might have occurred. Happily, none did.
But the 1999-2000 year did provide a number of things that we can celebrate: the completion of Science Hall, record endowment growth, stabilization of financial aid costs, significant growth in net tuition revenue, actual expenditures below budget, a record-setting year in freshman applications, and, a record-setting year in development.
Endowment
On June 30, 1999, the Lawrence endowment stood at $147.5 million. During the fiscal year that ended on June 30, 2000, the college received two significant endowment gifts, totaling in excess of $17 million. Those gifts, along with unusually high annual endowment contributions of $6.8 million, added $23.8 million to the endowment corpus. Coupled with $21.4 million in dividend income and appreciation on the investments, minus a programmed annual distribution to operations of $7.3 million, the endowment balance increased by $37.9 million to a total of $185.4 million -- a 26 percent increase over the preceding year.
Operations
In addition, and for the second year in a row, Lawrence enjoyed significant growth in net student revenue, brought about by a $1.2 million increase in income from student fees and a reduction in the amount of financial aid expended. Gifts from alumni, parents, and other friends of the college reached a record level of $19.8 million, an overall increase in contributions of $4.5 million.* Overall expenses increased 4.6 percent over the previous year, moving from $35.6 million to $37.2 million, below the five percent increase anticipated in our budget. The two areas that showed the largest percentage increase were Academic Support at $2.6 million, an 11 percent increase, and Student Services at $3.2 million, a 7.8 percent increase. All other expenses showed less than a five percent increase, with the exception of Administration, which remained constant at $5.9 million. Depreciation and interest costs, affected by the recent building projects, increased 4.3 and 4.7 percent respectively.
The net total assets of the college increased by $25.3 million to a record level of $219.6 million.
Facilities
During 1999-2000, work proceeded on Science Hall, which was completed just in time for the opening of the 2000-2001 academic year. In addition to that major building project, the college's largest ever, a considerable amount of other work was undertaken on campus, including exterior renovations on Lawrence Memorial Chapel, notably the roof and steeple; the second year of a planned four-year renovation plan for Main Hall, this time focusing on the first floor; and a complete renovation and updating of the President's House, including accommodations for the handicapped. A total renovation of Youngchild Hall of Science is currently underway. Other recent projects have included completion of the Lincoln Reading Room on the first floor of the library and the John G. Strange Student Commons in Main Hall; replacement of significant portions of the campus steam line; renovation of several student residence areas, including two additional small houses; and creation of additional office spaces for faculty members in the Conservatory of Music.
Technology
Lawrence again this year emphasized its strong commitment to technology, as we worked hard to convert the development and alumni system to the new SCT Banner Administration computer system -- the first of a series of steps to develop a fully integrated campus-wide system. We also developed a firewall policy to protect the college's information systems and expanded our use of web-based instructional technology. All classrooms in Science Hall are equipped with the latest in audio-visual electronic equipment, which was also installed in the newly renovated classrooms in Main Hall. Briggs Hall benefited from the addition of an electronic economics lab, and Main Hall now has a new humanities computing laboratory with 20 workstations. Computer hookups in student rooms have been improved, and campus computer labs continue to be upgraded. Expenditures in these areas totaled in excess of $500,000, which puts Lawrence close to $2 million in technology upgrades over the past four years.
Despite dire Y2K predictions, 1999-2000 has been a year of accomplishment and excitement, with many reasons to celebrate the millennial milestone. The efforts of past years are coming to fruition in the continuing development of a financially strong university, centered on a powerful academic program presented in modern facilities, with the latest in technology, and in a pleasing campus environment.
* Although the figures here presented are in compliance with standards adopted by CASE (Council for the Advancement and Support of Education) and NACUBO (National Association of College and University Business Officers), they differ from the presentation of gift income in the college's development report, which includes both gifts and payments on pledges received during 1999-2000 but excludes new pledges received during the fiscal year. Financial statement gift income, on the other hand, augments these numbers by the value of new pledges received during the year and reduces them by the value of payments made on pledges received in prior fiscal years.