A recent Daily Herald article, “Waterleaf chef quits amid COD faculty complaints” (12/23/12), chronicles the
challenge that College of DuPage faces in operating its auxiliary units,
primarily the McAninch Arts Center, WDCB Public Radio, and the new Waterleaf
restaurant and Inn at Water’s Edge boutique hotel. I often joke with people
that if you were going into business with dreams of big profits, at the top of
your list of business prospects would certainly be a jazz
radio station, a French restaurant and a performing arts center.
The Daily Herald reveals three operations of the college
that cost the taxpayer and the enrolled student $1.6 million to operate. “In 2012…, the MAC lost
$519,000…”. I take issue with the Daily Herald’s use of the word “lost”. When the College spends dollars in support of academic learning or the
operation of the physical plant those dollars are offset by tuition and tax
revenues. Currently auxiliaries contribute to their operation, The MAC
generated $1.3 million in earned and contributed income in fiscal 2012. However
the balance of the MAC’s operating budget is covered by the college general
fund. The College posted no year end deficit and in fact increased the fund balance.
The mandate going forward from the College is that we operate
in a “revenue neutral” manner. The term comes from D.C. tax legislation in the
80’s with the idea that spending increases in the federal budget would be
offset by increases in revenue. At the College it simply means that auxiliary
units do not spend more than we can earn through earned or contributed income.
The Daily Herald article continues, “Though college officials expect deficits to
continue in the short term, they say they're planning initiatives to try to cut
expenses. Breuder said he wants to see the losses reduced, but for now, the
college isn't at the point where it would have to give up on enterprises such
as the restaurant.”
We have already begun at the MAC. During this time of
renovation and a smaller season we have reduced staff and other operating
expenses and we are stepping back and taking a hard look at our operation. We
have every intention of providing arts experiences upon our return but those experiences will
have to be going forward “revenue neutral”.
Be well
Stephen
