 "Photo: The Phoenix/Libby Hagemeyer")
Ever wonder where your tution dollars go?
The Phoenix sat down with Chief Financial Officer William Laird and Thomas Hickey, associate vice president for finance, to pick both officials’ brains (and documents) and find out what Loyola does with tuition money from its Chicago campuses.
Main sources of revenue
Loyola’s two Chicago campuses make most of their revenue from student tuition. Tuition comprises approximately $254.2 million out of an operating budget of about $318.5 million, according to the 2010 fiscal year budget. The university also budgeted for receiving about $13.2 million from various student fees, which equals $267.4 million in net tuition and fees.
The remaining $53 million in revenue is gained between grants and contracts Loyola has with governmental and private sponsors, auxiliary income the university receives from residence hall rentals, rental payments from apartments owned and operated by the school, parking fees, food services, interest income and investment income.
Both Laird and Hickey stressed that Residence Life operates from a seperate capital pool.
The biggest expense
Salaries and benefits paid to administrators, faculty and staff including student workers and researchers take the biggest bite out of Loyola’s pocket.
The university plans to have paid out $155.1 million in salaries by the time the fiscal year ends June 30. The school pays out an additional $38.8 million in benefits for employees, including costs for social security and healthcare.
The second most costly expense
Grants and financial aid from Loyola are sort of like discounts. Students are essentially allowed to attend Loyola without paying the full price of tuition. This means the university subsidizes financial aid and the action equates to an operating expense.
Officials plan on shouldering $98.6 million in financial assistance costs this fiscal year. That amount will get bumped up to $112.2 million next academic year, according to fiscal year 2011 forecasts.
Interestingly, Loyola plans to receive about $277.8 million in tuition and fees for the fiscal year 2011, an increase of about $10.4 million from the 2010 fiscal year.
The increase corresponds with a hike in tuition and fees scheduled for next school year. As tuition goes up, many students’ ability to pay tuition goes down.
Starting in Fall 2010 when the 2010-11 school year begins, most full-time students taking 12 to 21 credit hours will pay $15,520 — an increase of $595 from the current cost of $14,925.
Because of Loyola’s tiered tuition system, full-time students who enrolled at the university prior to Fall 2007 will pay $15,090 — a $580 increase from the $14,510 they paid before the tuition hike. Full-time student activity fees will also increase by about 3.3 percent, from $315 to $325. Part-time students pay a lower dollar amount, but the rate of increase is the same regardless.
Other costs
Loyola Chicago expects to spend about $11.7 million on utilities for the fiscal year 2010.
Non-salary operating expenses account for $73.4 million. This includes costs for supplies, books and subscription purchases by libraries, hardware and software, medicine and supplies for the Wellness Center, printing services for faculty and students, contracted services, conferences and conventions, faculty, staff and student recruitment, sports equipment, travel and entertainment, among numerous other expenses.
Loyola budgeted to lose roughly $26 million this fiscal year because of depreciation of buildings and other capital assets. Depreciation is when a building loses value at a certain rate as it is used and time passes.
Other operating expenses listed on the 2010 financial year budget are $2.5 million for insurance and a $588,000 subsidy for the Loyola University Museum of Art.
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