The University could bring in an additional $12 million per year if it institutes a mandatory summer session currently under investigation for rising juniors.
Since juniors would take either the subsequent fall or spring semester off from school, the University would be able to fill their spots by enrolling an additional 1,000 students. Tuition from the additional students would constitute the majority of the projected revenue.
GW would phase in the additional students over four years, and incoming revenue from extra tuition would be consistent after that point.
University President Stephen Joel Trachtenberg said GW’s classroom and residence hall facilities are not being fully utilized in the summer, which would increase revenue. He said he questioned how to “use this untapped resource to increase income to the Universit.,” He could then invest into programs and facilities that members of the GW community want.
“Some faculty want raises and they want additional colleagues and they want research opportunities and they want science buildings … and students want lower tuition and more scholarships and they also want academic facilities…and we want to say ‘yes’ to these things,” Trachtenberg said. “The only way we can say ‘yes’ to these things is if we figure out how to pay for them.”
Since GW is a tuition-dependent university, one way to generate revenue is to increase enrollment. GW’s spending rate for its endowment – funds and property donated to an institution as a source of income – is about 5 percent, depending on what the Board of Trustees approves. For example, $10 million can be used out of $200 million of endowment.
GW recently completed a Capital Campaign that brought in $550 million to the University from alumni and other donations.
“Last year was the most successful (fundraising) year in the history of the University, but it is not dependable,” Trachtenberg said. “And a lot of rich friends of the University are not feeling as rich as they did when the market was stronger.”
Executive Vice President for Academic Affairs Donald Lehman said GW needs a means by which to reduce its tuition dependence.
Lehman also said revenue would go towards improving the “academic excellence” of GW.
“That revenue would be used to help academics … connected to the strategic plan,” Lehman said.
GW’s strategic plan includes initiatives such as a writing program, which 750 freshmen enrolled in this fall.
Trachtenberg cited two facilities which GW does not have enough money to build, and which a mandatory summer session’s revenue could possibly help construct – a science building and a structure on the old GW Hospital site.
A new science facility would cost at least $50 million, Trachtenberg said. He said possibilities for the old hospital site include facilities for the School of Public Health with labs, offices, classrooms and housing accommodations, which would cost about $500 million. GW could also build a commercial space or a mixed facility with commercial, residential and retail space.
Although a change in the calendar would generate revenue, several areas of the University would need extra funding because they would be operating year-round.
Costs for operating the Marvin Center and Health and Wellness Center during the summer would be about $250,000, said Donald Boselovic, associate vice president for budget. Paying staff at Gelman Library would cost an extra $450,000, he said.
A report by the Study Group on an Alternative Academic Calendar shows the University would make between $10.8 and $12.7 million if a mandatory summer were instituted, depending on which of four options were adopted. However, members of the group’s operations and finance subcommittee made several assumptions that need to be studied, officials said.
Some members of the Faculty Senate’s fiscal planning and budget committee are studying the assumptions. They will present their results to the full committee Oct. 24 and the Senate Oct. 31.
William Griffith, chair of the committee, said it is studying assumptions such as how a mandatory summer session could be laid on top of the existing summer session and how cost in general was estimated.
“The bottom line number is just the result (if) all these assumptions are valid,” Boselovic said. “There’s more of a concern on validating these results before we spend (revenue).”
