Economic Talking Points

 

The data discussed below were obtained from IRS Forms 990 for the academic years 1988-1989 through 2002-2003.  Detailed data for 1995-1996 are missing although the salary data for officers are available for that year.  Otherwise the set is complete and appears to be relatively consistent over the years.  Equivalent data for 2003-2004 will be available about February 1, 2005. 

 

Enrollments

 

Data are taken from Part III of Form 990.  Undergraduate enrollments have risen to over 5000 in the last few years and remain near their highs.  Graduate enrollments have declined from a high of 2617 in 1996-1997 (the last Pipes year) to 1951 in 2002-2003.   They have now fallen just below the base year, 1988-1989.

 

 

President

Academic Year

Undergraduate Enrollment

Graduate Enrollment

 

 

 

 

Schmitt

1988-1989

4453

1955

Schmitt

1989-1990

4422

2045

Schmitt

1990-1991

4450

2213

Schmitt

1991-1992

4398

2259

Schmitt

1992-1993

4307

2216

Pipes

1993-1994

4262

2069

Pipes

1994-1995

4360

2040

Pipes

1995-1996

4360

2040

Pipes

1996-1997

 

 

Pipes

1997-1998

4534

2617

Barton

1998-1999

4807

2359

Jackson

1999-2000

5083

2242

Jackson

2000-2001

5281

2365

Jackson

2001-2002

5426

2277

Jackson

2002-2003

5292

1951

 

 

 

Public Sector Gifts and Grants

 

Data are taken from Line 1a of Form 990.  All dollar values are in 1000s.  

 

President

Academic Year

Private Sector Gifts in
Current Dollars

CPI Inflation Factor

Private Sector Gifts in
Constant 1989 Dollars

 

 

 

 

 

Schmitt

1988-1989

31,902

1.000

31,902

Schmitt

1989-1990

34,878

1.054

33,091

Schmitt

1990-1991

35,684

1.098

32,499

Schmitt

1991-1992

34,842

1.131

30,806

Schmitt

1992-1993

37,104

1.165

31,849

Pipes

1993-1994

32,321

1.195

27,047

Pipes

1994-1995

33,476

1.229

27,238

Pipes

1995-1996

34,637

1.265

27,381

Pipes

1996-1997

 

1.294

 

Pipes

1997-1998

28,511

1.325

21,518

Barton

1998-1999

43,580

1.344

32,426

Jackson

1999-2000

41,869

1.389

30,143

Jackson

2000-2001

49,277

1.428

34,508

Jackson

2001-2002

62,533

1.451

43,096

Jackson

2002-2003

50,761

1.484

34,206

 

The impressive recent gains for gift income in terms of current dollars remain real but become more modest when the numbers are deflated using the consumer price index.  Three of the four Jackson years set records when measured in terms of either current dollars or 1989 dollars.  Since academic inflation has greatly exceeded the CPI, the apparent gift income remains overstated relative to the cost of doing Rensselaer’s business.  However, the ruinous decline in gift income during the Pipes administration has been reversed.  With the $1 billion capital campaign now underway, there may be real progress. 

 

About $600 million is already credited toward the billion dollar goal.  Thus the campaign must product about $100 million per year in current dollars or $60 million per year in 1989 dollars.  This is clearly very ambitious.

 

The data in the table include income received so far against the $360 million pledge.  It appears that the first income from this gift was received in 2000-2001 in the amount of just over $10 million.

 

Government Grants

 

These data are obtained from Line 1c of Form 990.

 

  

President

Academic Year

Government Grants in
Current Dollars

Government Grants in
Constant 1989 Dollars

 

 

 

 

Schmitt

1988-1989

29,064

29,064

Schmitt

1989-1990

32,425

30,764

Schmitt

1990-1991

34,467

31,391

Schmitt

1991-1992

33,698

29,795

Schmitt

1992-1993

32,116

27,567

Pipes

1993-1994

33,131

27,725

Pipes

1994-1995

38,554

31,370

Pipes

1995-1996

37,135

29,356

Pipes

1996-1997

 

-

Pipes

1997-1998

36,993

27,919

Barton

1998-1999

35,126

26,135

Jackson

1999-2000

40,205

28,945

Jackson

2000-2001

40,106

28,085

Jackson

2001-2002

37,753

26,019

Jackson

2002-2003

41,652

28,067

 

Income from government grants is essentially flat when deflated by the CPI.  Recently awarded NIH grants have not year appeared in this accounting, so a real gain will presumably appear in future years.  However, the non-bio, base establishment at Rensselaer is caught in the doldrums.

 

Program Revenue

 

These data are obtained from Line 2 of Form 990.  Program revenue is mainly derived from tuition, student housing, food services, the bookstore and health services.  It thus reflects the student population.     There has been a major increase over the years in student-derived income.  Indeed, students appear to have been our only consistent source of real income growth.  Investment income will presumably grow over the long term but has been poor in the last few years.   

 

President

Academic Year

Program Revenue in
Current Dollars

Program Revenue in
Constant 1989 Dollars

Constant $ Program Revenue per Student

 

 

 

 

 

Schmitt

1988-1989

90,449

90,449

           14

Schmitt

1989-1990

96,655

91,703

           14

Schmitt

1990-1991

103,328

94,106

           14

Schmitt

1991-1992

110,962

98,110

           15

Schmitt

1992-1993

117,135

100,545

           15

Pipes

1993-1994

119,771

100,227

           16

Pipes

1994-1995

120,181

97,788

           15

Pipes

1995-1996

122,651

96,957

           15

Pipes

1996-1997

 

 

 

Pipes

1997-1998

135,848

102,527

           14

Barton

1998-1999

149,858

111,501

           16

Jackson

1999-2000

167,329

120,467

           16

Jackson

2000-2001

182,178

127,576

           17

Jackson

2001-2002

194,467

134,023

           17

Jackson

2002-2003

213,425

143,817

           20

     

 

Management Expenses

 

The data are obtained from Line 14 of Form 990.  There has obviously been a large increase even in constant dollars.  Management expenses grew at an annual rate of 7.0% (in current dollars) between 1989 and 2003.  Between 1998 (the last Pipes year) and 2003, the growth rate increased to 9.1%.  The 15-year grow rate was 4.2% in 1989 dollars.  The real cost of administration has doubled during a period of approximately flat faculty count and about a 9% increase in student numbers.  

 

President

Academic Year

Management Expenses in
Current Dollars

Management Expenses in
Constant 1989 Dollars

 

 

 

 

Schmitt

1989-1990

24,282

24,282

Schmitt

1990-1991

26,974

25,592

Schmitt

1991-1992

28,873

26,296

Schmitt

1992-1993

27,085

23,948

Pipes

1993-1994

29,181

25,048

Pipes

1994-1995

39,804

33,309

Pipes

1995-1996

31,558

25,678

Pipes

1996-1997

37,483

29,631

Pipes

1997-1998

 

 

Barton

1998-1999

43,487

32,820

Jackson

1999-2000

48,258

35,906

Jackson

2000-2001

48,756

35,102

Jackson

2001-2002

94,783

66,375

Jackson

2002-2003

47,802

32,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets and Liabilities

 

Form 990 gives these data on Lines 59 and 66 (or on attached schedules).   Assets include the endowment and the physical facilities.  A major component of liabilities is the long-term debt.  The results show a recent flatness in assets, presumably due to poor investment performance.  Liabilities have substantially increased due to long-term debt undertaken for the building program. 

 

President

Academic Year

Assets in Current Dollars

Liabilities in Current Dollars

 

 

 

 

Transition

1988-1989

444,962

89,201

Schmitt

1989-1990

481,999

91,837

Schmitt

1990-1991

503,206

102,641

Schmitt

1991-1992

538,614

114,200

Schmitt

1992-1993

586,073

169,529

Pipes

1993-1994

595,279

172,372

Pipes

1994-1995

634,220

165,970

Pipes

1995-1996

696,396

180,330

Pipes

1996-1997

769,973

193,096

Pipes

1997-1998

820,318

184,265

Barton

1998-1999

916,741

199,147

Jackson

1999-2000

1,131,263

201,558

Jackson

2000-2001

1,012,046

219,682

Jackson

2001-2002

1,126,735

406,141

Jackson

2002-2003

1,102,936

482,962

 

 

 

 

 

 

 

 

 

 

 

Salary Data

 

Salary data for officers are obtained from IRS Form 990, Part V, Columns C, D, and E.  The combination of salary, benefits and special allowances is shown for the president in the following table. 

 

President

Academic Year

Salary

Salary plus benefits and allowances

 

 

 

 

Schmitt

1988-1989

             200

            244

Schmitt

1989-1990

             200

            244

Schmitt

1990-1991

             200

            243

Schmitt

1991-1992

             200

            247

Schmitt

1992-1993

             200

            260

Pipes

1993-1994

             216

            296

Pipes

1994-1995

             216

            296

Pipes

1995-1996

             250

            339

Pipes

1996-1997

             273

            368

Pipes

1997-1998

             288

            384

Barton

1998-1999

0

              18

Jackson

1999-2000

             310

            454

Jackson

2000-2001

             375

            519

Jackson

2001-2002

             490

            931

Jackson

2002-2003

             644

            848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The average “raise” for the president, excluding benefits and allowances, over the 15-year time span of these data has been 8.1%.  However, the average for President Jackson is  27.6%.

 

Salaries for officers other than the president have also shown impressive gains.  The results in the follow table are averages for those people bearing the title of vice president, provost or dean of the faculty, and chief counsel.   The average “raise” for officers over the 15-year time span has been 5.3% but has been 15.5% during the Jackson presidency.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

President

Academic Year

Number of “Officers”

Average Salary

 

 

 

 

Schmitt

1988-1989

6

94

Schmitt

1989-1990

6

98

Schmitt

1990-1991

6

106

Schmitt

1991-1992

6

112

Schmitt

1992-1993

6

114

Pipes

1993-1994

6

123

Pipes

1994-1995

6

128

Pipes

1995-1996

6

139

Pipes

1996-1997

6

138

Pipes

1997-1998

6

139

Barton

1998-1999

6

151

Jackson

1999-2000

7

133

Jackson

2000-2001

8

179

Jackson

2001-2002

9

194

Jackson

2002-2003

9

205