Budget review: Student participation lacking

President Torgerson and the College Council began constructing Luther’s annual budget last month. From October to its approval in May, the budget will be reviewed by faculty, staff, administrators, Regents, and, for only the second time, the Student Senate.

The budget, which has been regularly dismissed by students as a tedious administrative task, will nevertheless play an integral role in students’ financial situations.

“In early January . . ., we engage the Board of Regents, they look at all of this [data] and they have one decision to make, and that is the comprehensive fee,” Torgerson said.

The process establishes not only the comprehensive fee but also the amount of financial aid given to students. For Student Senate President Mitch Zoelzer, the enormous role the budget plays in actually determining student expenses should be a cause for more student participation and awareness.

“In addition to increasing student representation throughout the process, I think we can vastly improve on making most of the campus aware of the [budget],” Zoelzer said. “I think it is important that. . . people can make sure that the money that they are putting into Luther is being invested in ways that they think are appropriate and acceptable.”

Last year marked the first year that the proposed budget was presented to Student Senate prior to its approval by the Board of Regents. Beyond that, formal student input in the budget process is limited to Jaymie McGrath (‘12), who sits on the Resources and Facilities Committee of the Board of Regents. For Zoelzer, the current level of student participation is not adequate.

“I don’t know if the leadership of Senate was involved in any additional way, but Senate as a whole’s involvement [last year)]was more observational rather than influential,” Zoelzer said. “From what I remember, the budget was presented to us, some people were allowed to ask questions, but no large formative discussion or debate actually occurred. It was largely presented as, ‘This is the budget that has been approved, just wanted to let you know.’ I think they appreciated our opinions and liked our comments, but I don’t think it would have, could have or did lead to any practical changes.”

While students have little formal input in the budget creation process, few obstacles prevent them from becoming educated and aware. Most financial statements and budget information, except faculty salaries, are available to the public at the library or through requests.

“Generally, I don’t think any one of us would have a problem if somebody wanted to see what makes up all of the supplies and expenses, but everything that’s in the library is all summarized,” Tacke said.

For some, the possibility of inclusion in the budget process seems unlikely. Student participation, which is limited to suggestion and opinion, provides little recourse for an interested party to influence the budget. The opportunity for education on the topic, however, is not diminished by such a handicap.

“Nobody ever feels they get as much input into the budget building process as they might like, but there is a budget building process and it would be possible for a person who cared about that process to stay informed about it and express opinions about it and probably influence some parts of the process,” Professor of English and Department Head Mark Muggli said. “But most of us, in the large sense, are not part of that process.”

The budget allocation process is a long and tedious procedure involving numerous back-and-forth discussions with the Board of Regents, department heads and the College Council.

“[Budget determination] is essentially the deans and vice presidents in consultation with something called the College Council… but it’s clear even that that group is consulting—it’s not shaping,” Muggli said. “The budget shaping is essentially happening by the president and the five vice presidents in what’s called the cabinet.”

Budget construction includes input from many different areas, but in the end, veto power of any budget item is Torgerson’s prerogative.

“Each department head is responsible for their own budget… [and] each vice president has responsibility for the areas that report to them,” Torgerson said. “But ultimately, the buck stops at this desk.”

While interaction between the President’s cabinet, faculty, staff and the Board of Regents occurs regularly, Torgerson holds the final say for any budget item. According to Vice President for Finance and Administration Diane Tacke, much more institutional control comes from external accounting standards and practices than from checks and balances within the administration.

“With all the changes in accounting standards, we’re held at a much higher level than we’ve ever been held before. Between the IRS and FASB [Financial Accounting Standards Board]… we are running through a lot more hoops than colleges, universities and companies used to have to go through,” Tacke said. “Much greater oversight has been developed based on accounting standards and internal control procedures.”

Items such as key officers’ expenditures are always reviewed and approved by someone at least one step higher. The Board of Regents also determines those officers’ salaries.

While Torgerson holds veto power for items within the budget, his power over it is not unlimited. The final budget is ultimately approved by the Board, who get the opportunity to review summarized versions of the proposed budgets prior to voting.

“There’s lots of conversation, but ultimately it’s their decision, based on a whole lot of information that we provide,” Torgerson said.

Meanwhile, Zoelzer and the Student Senate work for greater involvement in the budget process for students.

“[I] am largely supportive of the administration’s efforts,” Zoelzer said. “I just think that there is always room for improvement, and we as Senate look forward to making some of those practical improvements this year.”

Such progress might be difficult but undoubtedly could be furthered by an educated student body. Budget records and financial statements are available at the Preus Library reference desk for perusal at all times.