Keene State entered a new year of budgeting looking to adhere to the college’s strategic plan and continue to battle its deficit while also providing for each department on campus.
Fiscal year 2025 (FY25) started on June 30 and will continue through July 1, 2025. Each year, the University System of New Hampshire (USNH) Board of Trustees must approve Keene State’s budget.
Vice President for Finance and Administration Nathalie Houder said in an interview with The Equinox that Keene State is expected to break even by FY26, a goal the college remains committed to by the Board of Trustees.
Houder said inflation posed a big challenge when building the budget. She stated that although the finance team tried to account for rising prices, they still found themselves falling short because of how difficult inflation is to predict long-term.
Department supplies were one of the expenses most directly impacted by inflation. KSC President Melinda Treadwell said one goal of the new budget was to restrict spending on supplies to avoid reaching an unsustainable rate of spending that outpaces the inflation rate.
Other examples of expenses include utilities, especially for the residential buildings on campus, as well as travel for organizations like athletic teams and the expense that Houder identified as the largest in the college’s budget: labor.
The answer to managing the college’s funds is “spending more efficiently versus spending less,” Houder said. She pointed to the switch from a one-year utilities contract to a three-year contract as an example of more efficient spending, as well as the continuing switch to shared services across USNH such as human resources and IT.
One of the big changes to the budget Houder pointed out was a $1.5 million reduction in state-appropriated funds, which is money KSC received from the New Hampshire government previously. She explained there are numerous streams of revenue for the college, and a reduction in appropriations requires a focus on alternate sources of funding.
This reduction in appropriations comes after a $3.5 million increase for the FY24 budget, according to previous reporting by The Equinox.
Appropriations are administered on a two-year basis, with USNH Chancellor Cathy Provencher and Vice Chancellor for Financial Affairs Karen Benincasa representing the college in discussions with state legislators, with support from Treadwell. The appropriations after the reduction sit at $14 million.
Houder highlighted the importance of that representation with the New Hampshire state government, a state she described as often being less willing than other states to fund higher education.
“We would love more money from the state,” Houder said.
Because one of the significant revenue streams comes from student tuition, Houder said it is difficult to be certain of the numbers in the budget until the R+30 enrollment period has ended and the finance team has a clearer idea of how many students are enrolled and paying tuition.
The R+30 period ends in early October, 30 days after classes begin, and is seen as a key marker for a variety of metrics the college uses.
Houder said the finance team works with all departments across campus through January and February each year to build the following year’s budget.
“Every part of the budget impacts people,” Houder said. “Our shining North Star is, ‘How does this support our students and faculty and staff?’”
Charlotte King can be contacted at
cking@kscequinox.com
