The Dartmouth College Budget

November 2004

Expenses:

Total institutional operating expenses were $567 million.  Excluding direct sponsored research activities, operating expenses totaled $440.9 million, an increase of slightly more than 5 percent over FY 2003. The increase in expenses has slowed, and we successfully reallocated resources toward academic and student life priorities. Expenses for academic and student programs increased 7.8 percent, while total administrative, development and facilities expenses increased less than 1 percent.

Statement of Operating Expenses:

For the year ended June 30, 2004, with summarized financial information (opens in a new window) for the year ended June 30, 2003. Also available as a downloadable PDF (56kb).

Fixed and Variable Expenses:

The College, excluding the professional schools, has a relatively high percentage of fixed and non-discretionary operating costs (44 percent). These include financial aid, facilities operations and debt service, and tenure-track faculty salaries. This places greater pressure on variable costs during tight financial times. The combination of the size of the faculty compensation pool and the large portion of fixed costs make it particularly difficult for the College to be financially nimble.

Over the past four years we have seen a significant increase in externally controlled expenses like heating oil, health insurance, other insurance premiums, and financial aid. The cost of steel has increased by 42 percent since the beginning of 2004, and the cost of lumber has increased by 21 percent during the same time, which increases financial pressure on capital projects.

In addition, foreign exchange rates have put pressure on the Off Campus Programs budget. If the budgets for our FY2004-05 programs were calculated using the exchange rates in effect during the fall of 2001, our current programs would cost about $365,000 less.