Reply to Oberlin Sues Insurers who Denied Coverage for Gibson Case

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[quote=Anonymous][quote=Anonymous]They reportedly have a $1.2 billion endowment, so presumably they can afford it.  And now new management is in charge, so why not just move on? Unless they need the money.  I can't believe any rational administrator at that school wants the facts of the case to be hashed out in public again.[/quote]

Oberlin is not in great financial shape, long term. They were already running deficits. Like many expensive smaller colleges, they’ve already had to offer significant merit aid to attract qualified students, so raising tuition is not an option. In recent years, they’ve dipped into their endowment for operating expenses, and cut the number of students in the Conservatory, and made salary cuts for employees. $36 million (+ legal fees, so probably more like $40 million) is real money for a school the size of Oberlin.

https://oberlinreview.org/25701/opinions/colleges-financial-struggles-exacerbated-by-lack-of-alumni-donations/

https://www.insidehighered.com/news/2019/04/18/amid-budget-deficits-and-unfavorable-demographics-oberlin-pushes-do-more-less

https://oberlinreview.org/21937/news/college-deficit-5-million-less-than-expected-trustees-roll-back-one-time-salary-cuts/

Prior to the COVID-19 crisis, the College was already facing significant structural deficits. To address these systemic issues, the College developed One Oberlin recommendations in 2018 to balance the budget. One Oberlin implementation began last year with the expansion of Winter Term, the development of new postgraduate certificate programs in the Conservatory, new concentrations in the College, and the decision to outsource custodial and dining services.

This year’s increased financial deficits have only exacerbated the need for change already espoused by administrators. 
“Before the pandemic, Oberlin planned $6.8 million in reductions associated with the One Oberlin roadmap and these reductions were projected to produce a balanced budget,” Vazquez-Skillings wrote. “Next year’s budget assumes that we will still achieve those necessary budget reductions.”[/quote]

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