Trustees of the Vermont State College system have approved another loan to help struggling Vermont Technical College. The loan was anticipated and the college’s president says VTC’s financial situation is improving.
Trustees signed off on the $1.9 million supplemental loan in May when they approved the college’s annual budget.
The loan brings to just under $7.2 million the amount VTC has borrowed from the state college system since the 2013 fiscal year and it’s likely the college will need another loan in the future.
When VTC President Dan Smith took over the job 14 months ago, there was a $4 million deficit projected for the current fiscal year.
The fact the college will end the year with a $2.2 million shortfall is a sign of progress, but the lower figure is largely due to cost savings, partly from layoffs and unfilled positions.
Smith says VTC can’t cut its way out of the deficit without hurting programs. It needs more students and more revenue from tuition.
He says the decline in Vermont high school graduates is creating challenges for all state colleges, but VTC’s enrollment losses are even greater than the demographic trends would indicate. He believes there’s an opportunity to increase student numbers.
The fact that the college will end the year with a $2.2 million shortfall is a sign of progress, but the lower figure is largely due cost savings, partly from layoffs and unfilled positions.
“We’re affordable; we’re connected to jobs that exist in the state of Vermont. And for Vermont kids who want to go to college here and want to pursue a career here, I think we’re one of the best options out there,” he says.
Ever since he took office, Smith has been on an energetic campaign to tie support for the college to the state’s economic development goals.
He says the fact Vermont has a problem providing employers with trained workers is partly due to a lack of state financial support for its colleges.
“When you don’t support those institutions, you don’t invest in them, it’s hard to scale and innovate in a way that keeps pace with industries. We have five public colleges in this state that are much better colleges than the state deserves relative to how they’re supported,” he says.
"We're affordable, we're connected to jobs that exist in the state of Vermont and for Vermont kids who want to go to college here and want to pursue a career here, I think we're one of the best options out there." - Dan Smith, VTC president
Smith says he is pleased lawmakers included money for a manufacturing lab in the state’s capital budget. But the question remains: Will enrollment and revenue from tuition increase enough to erase VTC’s deficits?
Smith says there are encouraging signs in enrollment figures for some programs, like nursing; and he’s optimistic about new programs such as one for paramedics.
But it's expected to take three to four more years for the school to work its way out of deficit spending.
