Through technology
and out-sourcing,
University planners
spend private
dollars wisely
 rivate donors helped offset inadequate state funding in the early 1990s, and the University managed to pull in more money from contracts and grants, too. To protect academic units from the deepest budget cuts and eliminate risky financial ventures, University
planners seized on every possible opportunity to out-source services such
as dining, computer
maintenance, laundry and bookstore operations. Because these and other services are now operated by private companies, the University is protected from financial losses in the event of a business failure, explains Barbara L. Kreppel, assistant vice president for administrative services. Privatization can also result in dramatic improvements to service, she says.
"Campus Dining Services are run by professionals who understand national campus trends," Kreppel says. "They can tailor services to meet the changing needs of this specific market, and they help keep our dining costs competitive. They must absorb any losses, so they're motivated to provide excellent service and to operate in an efficient manner."
Whenever outside vendors provide services, the University can
negotiate for the best possible price, notes Purchasing Director Tory Windley. The result, she adds, can be substantial savings. Several years ago, for instance, the University was routinely spending $30,000 and $35,000 every year to hire temporary secretarial help. By parlaying its buying power, however, the University now saves about 35 percent on such services, Windley says.
Because special, one-time funds were invested into new computing technologies such as private voice mailboxes and electronic access to the Internet, or information superhighway, meanwhile, the University has enhanced productivity while reducing costs associated with excessive paperwork. In Purchasing, Windley says, "Staff members can now use electronic forms to process major purchases in 12 hours or less, compared to 10 days using paper forms."
Privatization and productivity-enhancing technologies made it possible to trim $31.9 million worth of recurring expenses from the University's basic operating budget between F.Y. 1991 and F.Y. 1994, and less than 20 percent of these cuts were assessed against colleges. During that difficult financial period, the Board of Trustees bolstered campus morale by voting to earmark more of the University's endowment income to support day-to-day operations. Between July 1, 1990, and June 30, 1993, fortunately, the endowment grew more rapidly than it had during any other three-year period in the history of the University. This growth--fueled in part by large unrestricted private gifts, which are typically added to the endowment--paid for new stock and bond investments, which provided leverage for creative fund-raising efforts, resulting in additional deposits. By F.Y. 1996, consequently, the endowment was valued in excess of $500 million. In a Chronicle of Higher Education ranking of endowments at about 250 institutions, the University of Delaware's endowment was No. 34 on the list.
"The trustees have a great deal of confidence in the University administration," Board Chair Andrew B. Kirkpatrick Jr.
says. "It's a special institution, but for a long time, it didn't enjoy the national reputation that it truly deserves. That situation is changing now. At the same time, undergraduate scholarship aid has increased by 140 percent since 1990, and we've had impressive increases in gift income, contracts and grants."
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