Facing projected budget deficits of about $3 million in 2004-05 and about $7 million in 2006-07, Smith College president Carol Christ wrote a letter to the Smith College community on Jan. 29, 2004, describing some of the changes neecessary to balance the budget.

In her letter, Christ stated that she must make program cuts in order to pay for "competitive salary increases for faculty and staff, a financial aid budget that continues to meet the full demonstrated need of all enrolled students and a bond issue that will finance capital improvements, including part of the cost of a new science and engineering building," according to the Smith College website.

"The projected operating deficits stem largely from pressures on the college's three primary revenue sources-net comprehensive fee income, endowment income and current unrestricted gifts. Significant increases in the proportion of students receiving grant aid coupled with larger than expected average grants have decreased our net revenue from comprehensive fees," Christ explains in her letter. Additionally, due to the current financial situation in the country, endowment funding has been unable to keep pace with the growing need for aid.

According to the letter, the cuts in expenditure are disproportionally allocated in order to minimize cuts to academic and student services. From the current budget, approximately 11.9 percent will be cut from administrative services, 6.1 percent from student services and 5.3 percent from academic programs.

The specific cuts include reducing non-faculty staffing levels by 8.6 percent, eliminating 25 faculty positions over a five-year period, reducing the number of kitchens and dining rooms, eliminating the general contingency fund and structural surpluses and reducing discretionary funds.

According to the Smith College website, under the plan, $1.2 million will be allocated for new initiatives. Some of the proposals currently under consideration include "funding for classroom technology, a retirement health plan for faculty and staff, and an increase in the level of academic support for departments."

Also, $2.5 million will be used towards supporting a bond issue which will fund future renewal and replacement needs of Smith College. An additional $1.1 million will be put in reserve for an increase in funding for renovation of facilities.