Barnard College Debt Outstanding
College Faces Faculty and Staff Benefit Cuts Amid Financial Challenges
Barnard College has announced significant reductions to faculty and staff benefits as part of a broader effort to address a projected $252 million debt and mounting financial deficits. During a faculty meeting on November 11, President Laura Rosenbury outlined the planned changes for 2025, citing the college’s pressing need to stabilize its finances.
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The institution’s financial strain has deepened over the past decade, with its deficit ballooning to $23.3 million for fiscal year 2024, a figure 15 times higher than its 2014 deficit. S&P Global Ratings revised its outlook for Barnard from stable to negative in August, attributing the downgrade to rising debt, leadership transitions, and escalating operational expenses.
Faculty Expresses Discontent
The Barnard chapter of the American Association of University Professors (AAUP) criticized the lack of transparency surrounding the financial crisis, saying faculty and staff were “blindsided.” The AAUP expressed frustration at being excluded from decision-making processes while being asked to shoulder sacrifices to mitigate the deficit.
“Faculty and staff are now being asked to make a series of sacrifices in order to dig the college out of an economic hole that we had no part in making,” the AAUP stated.
Benefit Adjustments
The upcoming changes include increased health care expenses, extended waiting periods for new employee benefits, and adjustments to retirement contributions. Despite reductions, Barnard highlighted specific enhancements, such as improved coverage for X-rays, imaging, and emergency care. The administration projects these changes will save $2.5 to $3 million annually.
Faculty criticized these measures, noting that inflation and a 21% increase in eligible employees since 2018 have contributed to rising benefit expenditures. The AAUP argued that the administration’s data failed to account for inflation-adjusted spending, suggesting that benefit costs per employee have declined in real terms.
A Broader Higher Education Crisis
Barnard’s financial difficulties reflect wider challenges in higher education, including inflation, labor cost increases, and rising debt from capital projects. Chuck Ambrose, an education consultant and co-author of “Colleges on the Brink: The Case for Financial Exigency,” emphasized that such crises often result in employees bearing the brunt of budget cuts.
“Employees face the same cost of living increases that the college is trying to maintain for its operations,” Ambrose said.
A Call for Transparency
Faculty members like Najam Haider, chair of Barnard’s religion department, called for greater transparency, pointing to the absence of detailed budget presentations since 2019. Haider described the current process as lacking the community-oriented approach historically associated with Barnard.
“In this instance, we became just told there was a budget deficit. We were not given information as to why,” Haider said. “There’s no sense of community.”
Looking Ahead
Barnard, which has the smallest endowment among the Seven Sisters colleges at $466 million, faces ongoing challenges. President Rosenbury has set a goal to double the college’s endowment to $1 billion by 2030.
While the administration emphasizes the importance of long-term financial stability, faculty and staff remain concerned about the impact of these changes on their livelihoods and the future of the college community.
Sources:
- Barnard College Faculty Presentation (November 2024)
- S&P Global Ratings Report (August 2024)
- Statements from the Barnard Chapter of the AAUP
- Interviews with faculty members and higher education experts
- NACUBO-Commonfund Study of Endowments (2023)
Colleges Ranking Index by Rebellion Research
Barnard College Debt Outstanding
With $252 million in projected debt, Barnard makes cuts to faculty and staff benefits
