Maryville and SLU have already done it. So have the University of Missouri’s four campuses.

Now Fontbonne University has become the latest St. Louis-area university to freeze faculty and staff salaries for the next school year because of the economic downturn. Fontbonne President Dennis Golden sent out an email about the university’s financial situation yesterday in which he also announced the salary freeze.

Many schools like Fontbonne that depend on student tuition dollars for most of their revenue are bracing themselves for a difficult year if fewer students decide to enroll at their universities because they decide they can’t afford it. (In a story last week, I wrote about the lengths that schools are going to recruit high school seniors to avoid a possible drop in enrollment.) According to Golden’s message, Fontbonne’s biggest concern appears to be enrollment in its Options program — an evening program geared towards working adults.

As I reported last week, Fontbonne’s traditional undergraduate enrollment appears to be on target. But it’s an uncertain year, so who knows?

I have copied Golden’s message below:

April 8, 2009

Dear Colleagues:

As you may recall, I wrote to you last October about the need for vigilance during these challenging financial times. I indicated that the University would likely face difficult decisions in preparing the 2009-10 University budget.  Economic conditions have only worsened since October and the considerations involved in developing a balanced budget have increased significantly.

As many of you know, 95% of the Fontbonne’s revenue comes from tuition, fees and room and board.   Endowment income, on the other hand, accounts for only a small percentage of annual operating revenue.  So while the decline in the stock market does not have much immediate effect on our finances, the financial reality facing many of our students to remain enrolled is our greatest challenge during this downturn.

Despite vigorous efforts to market and recruit, we have begun to see a significant decline in the number of new students entering the Options program this year, and we project the same for 2009-10.  Although applications for admission for traditional (non-Options) programs remain strong at this time, we must also prepare for a possible downturn in those numbers as well.  These realities are reflected in our financial planning for next year.

Therefore, please be advised that there will not be any faculty or staff salary increases in the 2009-10 budget.   It is possible, however, that mid-year increases may be considered if our overall enrollment exceeds current projections.

In an overall sense, Fontbonne remains financially healthy.  But current and future economic conditions may require us to make difficult financial choices in the year ahead in order to maintain our financial viability during the remainder of the downturn and into the eventual economic recovery.

I thank you for your cooperation and understanding to date.  Rest assured that I am committed to working with you for the greater good of Fontbonne.

Sincerely,

Dennis C. Golden

President

The Grade is the St. Louis region’s premier blog on education and child welfare. To read other recent posts, go to www.stltoday.com/thegrade.