Beloit College is “not immune from the economic problems facing our country” noted the College’s Interim President Dick Niemiec today as he announced an employee reduction at the liberal arts college. The elimination of as many as 40 positions at the college was announced at a campus wide meeting today and in a letter sent to all employees.

Niemiec met with the campus community two weeks ago to outline the financial situation at the college which is facing a $1 million shortfall. He noted that “like most families and organizations in the country, we are facing economic challenges at Beloit College. While I think that they are difficult, I do not think they constitute a crisis…We do not believe that we will in any way have to sacrifice the quality of the educational experience we deliver here.”

The college has a budget of approximately $55 million, about three-quarters of which comes from tuition. About $2.3 million of the budget is the result of fund raising, and another $2.5 million is drawn from the endowment. The balance of income comes from room, board and miscellaneous sources.

“We must set the college on a strong course for the future as we prepare for the arrival of the new president in the coming year,” Niemiec said. “We know what is facing all higher education in this country. Demographic trends show fewer college-age students than in the previous decade. A less affluent but more diverse student body, while academically qualified for Beloit, will need more financial assistance. Because of fluctuations in the value of our investments, payouts from our permanent funds are likely to be lower in the coming years.”

Cost reductions, salary savings and spending restrictions have already been identified amounting to $750,000, and there is a moratorium on hiring on campus. Offices have been asked to identify ways to work with established staff to cover responsibilities and to make adjustments in individual duties. “Our next step is the difficult decision to pursue an employee reduction program” Niemiec said. “In order to achieve a balanced operating budget in light of enrollment projections, the College needs to eliminate approximately 40 positions.”

The employee reduction program will fall into two phases. In the first phase, the college is requesting individuals who are contemplating resignation or retirement, on or before May 31, 2009, to identify themselves. The number of people who choose to leave voluntarily at the end of the fiscal year will reduce the number of positions that will need to be eliminated in the second phase. The second phase positions will be eliminated at the end of this calendar year.

“These are extremely difficult decisions that will have an impact on all of us,” Niemiec concluded in his letter. “While they are the result of a number of factors touching every college and university in the country, they still have a very personal effect on all of us in the Beloit College community.”

He asked for assistance and understanding “as we work to preserve the quality of Beloit College. We are acting prudently in order to maintain the College on a steady course for the future.”