Monterey does not run on endowment

Author: Tim O'Grady

Although the College has been faced with a plethora of financial challenges in the past few months, the Monterey Institute of International Studies (MIIS) appears to thriving with a growing enrollment and a budget greatly unaffected by the recession - unlike Middlebury - which has suffered an endownment decline of at least 20 percent since July.

The College relies on three main sources to generate revenue: its endowment, charitable gifts and the annual comprehensive fee. The school's endowment, which ensures the College's financial stability and is used to plan long-term projects, has suffered due to the economic crisis.

But though the College relies on its endowment for approximately 24 percent of its budget, MIIS is not dependent on its endowment as a major source of revenue. According to Chief Financial Officer Patrick Norton, only two percent of the Institute's budget is supported by its endowment.

MIIS is supported financially by its student count and annual tuition. The student enrollment at MIIS is at an all-time high this year and the institute is anticipating an even bigger enrollment next year. The burgeoning popularity of MIIS and the fact that the institution is not endowment-dependent has prevented the school from having to make budget cuts.

Although MIIS has been affiliated with the College since 2005, the two institutions are not connected financially.

"The College and the Institute are two separate legal entities. [MIIS has] its own governance structure, own budget and [is] responsible for settling its own liabilities," Norton wrote in an e-mail.

Nevertheless, Middlebury's affiliation with MIIS has influenced the College's financial status indirectly. Many donors have pledged more money to the College after the partnership because they believe strongly in the mission of MIIS and want the affiliation to thrive well into the future. MIIS, however, does not plan to directly aid the College during these tough economic times.

"The Monterey Institute has been actively rebuilding its finances after years of deteriorating financial health - and it would be financially difficult for the Institute to donate money to Middlebury," said Norton.

By June 2010, Middlebury and MIIS plan to become academically and administratively integrated. In an interview featured in the Winter 2009 edition of The Middlebury Magazine, Norton said that although the integration is going according to plan, some aspects of the integration may be slowed down because of the recession.

Nevertheless, the integration has taken one major step forward in the recent decision to expand Executive Vice President Bob Huth's role with MIIS. Huth will be responsible for steering the financial operations so that the integration can be as smooth as possible. Norton said this appointment was in no way prompted by the financial challenge.

"Mr. Huth has been involved in the Middlebury-Monterey affiliation since it began," Norton wrote, "and his work with colleagues at Monterey will represent the best way to ensure the smoothest transition possible for both Monterey and Middlebury."