Budgeted income of $4.5 millionImportant 7% from fund raising: build surplus; increase staff salaries; meet our operating obligationsAux: store, after school care; tea garden; facility rental
Total: just under $4.5 millionInstruction includes supplies but majority is faculty salaries and benefitsAux. expenses include Cost of Goods Sold, which is our inventory in storeIn general, all auxiliary activities are profitable with the exception of extended care which is subsidized slightly each year.
I would like to look at two major expenses we have each year. The first in faculty salaries. This is always the largest expense in a school, and a very important one. We want to be in a position to attract qualified instructors and in our case, at least in the grades, instructors with special Waldorf training.So, we monitor each year comparative data we get from local schools both private and public.Caution: These are averages and may not reflect actual salariesGenerally, we are close to the market with our salaries. As the footnote describes, we pay about 8-9% above these averages for Waldorf training. For instance, if we hired a Waldorf trained instructor with five years experience, their average salary would be closer to $43k, not 39,500.But, keeping pace with the market generally requires that we increase salaries and benefits in most years.
Another major expense is financial aid.This chart shows some data about our FA over a five year period.FA is awarded for up to a max of 60% of tuition costs, based on evaluation of need done by an independent firm.What is immediately apparent is that the number of qualified students has increased in this period, and so has our budget. However, the amount of aid in relation to qualified need has actually declined. In other words, today we are meeting only 47% of the qualified need. As you can see from the footnote, we are not out of line with other private schools in allocating part of money to FA. Our ability to assist families with tuition is often much less than other private schools in the Austin area.
Stewardship of our monies.Last fall Board retired debt; if we finish year on budget will have about $1.8-1.9 million in reservesPuts us in an excellent position to move forward with some strategic planning.Our reserve target of 50% of annual expenses would be reached at $2.2 million
We saw a slight dip in enrollment this year. Next year we are estimating a significant reduction back to 2009 levels. It is difficult to predict actual enrollment this far out from the year, but if this holds true we need to determine why this is happening. The market study authorized by the Board this winter should help us determine a course of action.
Decrease in enrollment and increases in normal operating costs require that we increase tuition by 3% next year in the both the grades and the high school.I am often asked as Treasurer if we will ever see an end to tuition increases. I can only repsond that if we are to remain competitive for instructors in the market, continue to attract families that need assistance and modestly expand and improve our programs and facilities—yes, there will always be a need for some increase in tuition which makes up 87% of our income. Other than annual giving fund, we have not found another significant source of income for our school.
We monitor our tuition charges by comparing to other Waldorf schools around the country and to other private shools in the Austin area. AWS is significantly cheaper than the majorty of Waldorf programs in other states.Locally, we are above average costs when you factor in the myriad of Christian schools not show here, but we fair well in relation to major private institutions in the area.
AWS Community meeting February, 2012
AWSCommunity Meeting February 12, 2012 S
AWS Income 2011/12 Budget 6%7% AWS Income Tuition & Fees Fund Raising Auxiliary Income 87%
Expenses 2011/12 Budget 6% Expenses 9%14% Instruction Fund Raising3% Gen. & Admin. 68% Facilities Auxiliary Expenses
Instructor Salaries 51,00020 years 50,000 47,000 Instructor 48,000 Salaries15 years 47,500 44,500 AISD Austin-Private 45,000 AWS*10 years 44,500 42,000 42,500 5 years 40,500 39,500 0 10,000 20,000 30,000 40,000 50,000 60,000 * Waldorf trained instructor salaries 8-9% higher
AWS Financial Aid 07/08 08/09 09/10 10/11 11/12No. of qualified students 69 71 72 84 93FA as % of tuition* 6.2 6.9 7.9 8.6 9.25FA as % of qualified need 54 53 48 51 47AWS FA Budget (000) $252 $289 $321 $380 $414 * ISAS schools average: 9.3% NAIS schools average: 11.6%