September 15, 2011
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Kelsheimer on the Budget
DePauw University is carrying 120 million dollars of debt that has to be taken into account when creating the budget. Vice President of Administration and Finances Brad Kelsheimer says that when creating the budget year to year the goal is to avoid adding to that debt. In recent past years money has been taken from the endowment to help balance the budget. In the past years up to 5.5 % of the average endowment has been used. No additional percentage has been taken from the endowment in the past 3 or 4 years. Kelsheimer says this year it is likely that the University will have to take an additional .5% to balance the budget. This would be a total of 6% taken from the endowment.
Kelsheimer says the debt will remain part of our capital structure rather than taking from the endowment or increasing student costs to pay off the debt. He says it is vital to keep in mind that without the debt that DePauw has accumulated, the campus would not have some of the facilities on campus at this time.