Georgia's private colleges cut positions, programs

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By Laura Diamond

The Atlanta Journal-Constitution

Atlanta's private colleges have eliminated jobs, shut down programs and slashed spending because of a financial squeeze forced upon them by the recession.

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Private colleges, including Emory, have made cuts and reached out to alumni, staff and retired employees as part of fund-raising.

John Spink, jspink@ajc.com Private colleges, including Emory, have made cuts and reached out to alumni, staff and retired employees as part of fund-raising.

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Emory University has cut more than 250 vacant positions and eliminated 211 filled positions since the fall of 2008. Spelman College plans to close a child care center because of low enrollment and greater budget needs. Agnes Scott College in Decatur froze salaries and cut back on contributions to employees’ retirement accounts.

“We’re all doing a lot of belt-tightening,” Agnes Scott President Elizabeth Kiss said. “It’s part of the new economic reality. The question we all have is how long it will last.”

Nearly all colleges -- whether they be private or public institutions -- eliminated positions and programs as they cut costs in response to the current economic crisis. Private colleges, including Spelman and Emory, reached out to alumni, staff and retired employees as part of fund-raising efforts to support scholarships and other university needs.

Unlike public colleges that operate under state funding, private institution's money mainly comes endowments, tuition and gifts. Over the past year, college leaders saw their institutional endowments plunge as stocks, real estate and other investments tanked.

Agnes Scott saw its endowment drop by about 25 percent during the 2009 fiscal year, according to a report by Commonfund Institute and the National Association of College and University Business Officers. About 40 percent of the college’s operating budget comes from the endowment.

The college refinanced its debt to cut payments by about $100,00 a year and is saving about $90,000 a year through increased energy efficiency, Kiss said. They're relying more on adjunct professors who work part-time and are cheaper to employ than professors with tenure or on tenure-track. She said there are about a half dozen positions that should be filled.

“We’ve had to do what we can to drive our financial growth and strength,” Kiss said.

That includes increasing enrollment to raise additional money through tuition. The college enrolled 237 freshmen this year, an increase of about 30 percent over last year.

Emory University saw its endowment drop by 21 percent during the 2009 fiscal year.

President James Wagner instructed deans and others to make cuts because of the reduced endowment and increased financial aid to students. Student awards funded by Emory increased by more than 12 percent this academic year, spokeswoman Beverly Clark said.

No faculty positions have been eliminated, but 77 positions have been cut in communications and marketing, technology services, development and alumni relations and other areas since September, Clark said.

The university also closed several programs, including the Institute of Critical International Studies and the Center for Health, Culture and Society. Officials also scaled back some programs, including the Center for Science Education. Some of the activities handled by these shuttered programs were reassigned to other departments.