After a good year financially, Luther College prepares for a tighter budget next school year

While most students at Luther College have left Decorah for the summer, this time of year is still busy for some of the college's employees, including Luther Vice President for Finance and Administration Eric Runestad.

His office is wrapping up work on the school's 2015-2016 budget and is developing figures for the 2016-2017 school year.

This past year was a good year financially for the college, says Runestad, largely because the number of students on campus was up significantly from the previous school year.  Runestad says Luther College will end 2016-2016 with a surplus.

But since 90 percent of revenues for the college come from student sources and since enrollment this coming fall appears to be lower than this past school year, Runestad says the college is expecting around $2 million in lower revenues.

That has college officials looking for ways both to increase revenues and lower expenses.  Two study groups have been looking at employee benefits and workforce ratios, for instance.  The employee benefit study group is almost done with its report, which might bring about changes in retirement funding for Luther faculty and staff.  The workforce ratio study group is looking at whether the college is correctly staffed for the services it has to provide.  That group's report should be finished in about one month.

It's not just expenses that are being reviewed.  College officials are looking at new degree programs as a way to bring more students to campus; at private grants to help pay for some programming; and at stricter rules about off-campus housing that will keep more students in the college's dorms.

Runestad says Luther officials are able to look at the experiences other, similar colleges are having for clues on how to maintain a good financial balance.  The Iowa Association of Independent Colleges and Universities is one such source for financial advice, as are the Associated Colleges of the Midwest and other ELCA Church private colleges.  Those figures show many colleges are facing the same financial challenges as Luther--and several in much more serious financial predicaments.

Runestad says prior leadership at Luther College has done a good job of determining what direction the college should be heading in--and not letting the ups and downs of individual years distract leaders from the overall goals.