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Vermont Technical College's Deficit Shrinks, But It's Still In The Red

Steve Zind
/
VPR
Vermont Technical College's deficits have led to a series of loans from the state college system. President Dan Smith says VTC can't cut its way out of the deficit without hurting programs; it needs more students and tuition revenue.

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.

Steve has been with VPR since 1994, first serving as host of VPR’s public affairs program and then as a reporter, based in Central Vermont. Many VPR listeners recognize Steve for his special reports from Iran, providing a glimpse of this country that is usually hidden from the rest of the world. Prior to working with VPR, Steve served as program director for WNCS for 17 years, and also worked as news director for WCVR in Randolph. A graduate of Northern Arizona University, Steve also worked for stations in Phoenix and Tucson before moving to Vermont in 1972. Steve has been honored multiple times with national and regional Edward R. Murrow Awards for his VPR reporting, including a 2011 win for best documentary for his report, Afghanistan's Other War.
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