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While over 100 other private colleges failed the United States’ Education Department’s financial responsibility test for the 2013-2014 academic year, Piedmont College passed with perfect score. According to President James Mellichamp, this score illustrates the financial success of Piedmont College.
“It is kind of a barometer, if you think of it in that way, as to which institutions are predicted to be healthy [financially],” said Mellichamp. “And, we are on very solid footing.”
Mellichamp explained that this success is due to the conservative nature of the Board of Trustee’s budgeting. The board’s members take a look at how much revenue the college will receive. They budget for the upcoming year well below what they anticipate will come in; Mellichamp said this ensures the financial success of the school, giving Piedmont a cushion for any issues that could arise.
However, budget freezes and rumors of financial instability appear to have students, faculty and staff questioning the future of the college. Still, Mellichamp said that the budget freezes and cautious spending are simply a sign of a financially-responsible college.
“Those are positive signs,” Mellichamp said. “Those are indications that we are watching the situation carefully and reacting to it.”
Mellichamp also announced at a recent faculty meeting that faculty would not be receiving raises in the coming year.
“We don’t want to overspend what we have and find ourselves in a predicament,” Mellichamp said. “There is nothing that is essential to the operation of the college that is not being provided.”
Mellichamp said that this sort of spending is normal for Piedmont, and that nothing going on with the budget is strange or unusual.
“Everything is operating in a very clear way,” Mellichamp said. “And, I think that score indicated how successful we have been.”
To read the full article from the Chronicle of Higher Education about the financial responsibility of private colleges across the U.S., visit Chronicle.com.
In this story, it was printed that “Mellichamp also announced at a recent faculty meeting that faculty would not be receiving raises in the coming year.” However, according to President James Mellichamp, the board of trustees will review the possibility of salary increases for faculty and staff at the beginning of the fall semester. To clarify, the faculty was told that there will be no raises in the contracts faculty are issued for the 2016-2017 year, but Piedmont may retroactively give raises if the trustees feel fall 2016 enrollment is strong. The Roar apologizes for any confusion this may have caused.