"The administration" is a term that has little meaning beyond its political use. In order to provide a substantive response to explain growth at Dartmouth, we need to examine the question in more detail between 2002 and 2006.
First, we have described how the number of staff have grown at 1.1% per year and faculty have grown at 3% per year during this period. When we look at salaries over the past 12 years (since 1995) for faculty and salaries for all staff, we see that staff salaries have grown at 6.6% per year and faculty salaries have grown at 6.1% per year. Over the past four years those relative growth rates have changed dramatically with staff salaries growing overall at 2.8% and faculty salaries at 5.6%.
Next, we can look at how expenses have grown in each area within the College, excluding professional schools. Please recognize that central support services for the professional schools, e.g., financial services, human resources, purchasing, legal services, insurance management, etc. are included in these growth figures. The fastest growing expense lines in the College budget are for financial aid and for operating our campus buildings. Financial aid has increased at an annual rate of 12.2% and building operations at 14.7%. The increases in building costs are due primarily to the addition of new buildings and facilities on the campus; however, heating oil and electricity prices have also had a major impact.
The next largest expense increases over the past five years are in athletics (6.8%), the faculty of Arts and Sciences division (7%), fund raising (7.7%) and public affairs (8.4%). In dollar terms for these four categories, we have increased the investment in the faculty of arts and sciences by over $20 million between 2002 and 2006, while the other three areas have grown $8.6 million over five years and $5.1 million since 2003. As you can see, we have slowed growth in nearly all areas since 2003.
It may be a surprise to learn that expenses to support student and residential life have grown at 3.1% per year.
In order to take a longer term snapshot of expense growth we need to find consistent data. The annual audited financial statements for the entire College including the professional schools provide reliable data over thirty years. The chart below shows growth by functional area over thirty years. The line with the steepest slope, showing the greatest increase, is in support of instruction and academic services. Research funded through grants from outside Dartmouth is the second fastest area of growth. And financial aid has grown at the next fastest rate. These are not the areas which would typically be labeled as "administration."
Legend:
- Instruct & Acad Support - All funds expended for educational purposes across the institution, including faculty compensation and the Library
- Spons Research - Funds expended on externally sponsored grants, contracts and other research
- Financial Aid - Funds awarded as financial aid to students, including grants and stipends [fyi: loans NOT included here]
- Plant - Funds expended for maintenance of buildings, grounds, and facilities on campus, including debt service
- Auxiliaries - Funds expended for the operation of auxiliary operations, such as the Hanover Inn, Dartmouth Skiway, Hanover Country Club, Residential Life and Dartmouth Dining Services
- Student Services - Expenditures for non-academic student support services such as Athletics, Student Health Services, Student Life, and various other programs of the Dean of the College area
- All Other - Includes Development, Alumni Relations, Public Affairs and general administrative costs
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