Private schools feel economic strain

Private colleges across Arkansas are not plagued with possible cuts in state appropriations, but some schools are still feeling the financial pinch.

Mark Scott, director of media relations for Hendrix College, said Wednesday recent changes have been made on campus to soften the blow of the tough economy.

"At this point we wont know the extent of any changes until our new fiscal year starts in July, but we have cut back on our spending to keep it as manageable as possible," Scott said. "We are also anticipating that we won't have a budget increase when our new fiscal year starts."

Although Scott said no layoffs have occurred on the Hendrix campus, he said no open positions will be filled in the coming months.

Being a private school, Scott said Hendrix's primary sources of income are tuition, an annual fund and the endowment.

"Last I saw the endowment was down 28 percent," Scott said. "All colleges with endowments are having to reassess their nature of need and look at keeping expenses down."

He added there is nearly $200 million in the endowment at this time.

Although the picture painted by the economy may look bleak for all businesses, Hendrix said their silver lining lies with the students, current and former.

"I think all colleges have been concerned with the economy affecting admissions, but we are not seeing that," Scott said. "Despite the economy, we had a record year with this current freshman class, as it was the largest in the college's history and we are on target to meet that number again next year."

Scott also emphasized any budget cuts or fiscal changes Hendrix has to make will not affect its students.

"Student programs are the last things we want to talk about cutting," Scott said. "In fact we're talking about ways to enhance good student programs in this economy."

As for Hendrix alumni, Scott said even though their personal budgets may be hit by the recession, they are staying loyal to the school.

Though Scott said the annual fund is running lower this year, there are more people contributing.

"A more encouraging number is in our donor base," Scott said. "There are more people involved now and that shows that our donor base is loyal and giving as much as they can at this time."

Although many private colleges are making changes, especially those that rely on endowments, Central Baptist College President Terry Kimbrow said his campus has not felt the financial strain.

Kimbrow said because CBC does not have as large of an endowment as other schools, the Conway campus is not suffering as much.

"I've talked to some of my peers in other institutions who are seeing that, but I can just tell you from our perspective we are not seeing it at all," Kimbrow said. "Tuition and things like that are going to adjust with inflation but we are so blessed because we just don't feel it yet."

Kimbrow admitted a prolonged recession could eventually affect CBC, but added he knows the value of education will stay strong.

"Education may not benefit greatly from a recession, but I think it is going to hold steady," Kimbrow said.

(Staff writer Jessica Bauer can be reached by e-mail at jessica.bauer@thecabin.net or by phone at 505-1236. To comment on this and other stories in the Log Cabin, log on to www.thecabin.net.)

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