Beloit College will reduce its staff by 40 jobs — about 10 percent of its total workforce — by the end of this year.
According to Ron Nief, director of public affairs at Beloit College, the university will begin by removing people who self-identify as possibly retiring or leaving the college, they and have until the end of the week to come forward.
Nief said the number of people who come forward will determine how many staff cuts the school will make, and that number will be announced Nov. 21. He said the cuts will go into effect Dec. 31.
The job cuts are due to a projected $1 million budget shortfall, which is largely because of the tuition loss from 36 students who will not be returning to Beloit next fall.
“For the University of Wisconsin, 36 students is not much, but for a college that is projecting 1,300 students, it’s a significant impact on our budget,” Nief said.
Cuts are also due to an anticipated decrease in fundraiser money as a result of the present economy. Although next year’s budget is being set at a lower rate, he expects no further layoffs in the future and said Beloit College will be in “good shape.”
Although Beloit College is feeling the effects of the economy’s downturn, the UW System has reached record enrollment levels, according to UW System spokesperson David Giroux.
Giroux said UW schools have 173,000 students currently enrolled, which is a record number. He added there are no plans at present for cutting back staff.
“Our goal is to further enroll and not contract,” Giroux said. “The state needs more college-educated workers, and it’s our job to provide that.”
According to Giroux, it is too early to predict whether the economy will affect enrollment levels at UW schools. He said low enrollment might only be one of a variety of possible outcomes due to the bad economy.
“There will also be students who are convinced now more than ever that if they’re going to survive in this world and support a family, they’re going to need a college education,” Giroux said.
Susan Fischer, UW-Madison’s director of Financial Aid, said so far UW has not seen much change in aid available, adding private school financing is much more difficult than public school financing.
Fischer said most aid students receive is from federal loans, which are a relatively stable source. Private loans are going to be most affected, she added.
“The market is going to get really tight,” Fischer said. “It’s possible that grants we get from private donors might dry up.”
Fischer added in-state students have a huge advantage when it comes to finances due to the lower tuition costs. Either way, Fischer said it is hard to predict the future when it comes to economic effects on financial aid.
“Even though it’s way too early to tell how everything will play out, it’s never too early to live tight,” Fischer said.
