Recently, Dr. John Cornwell provided data concerning cuts suggested in the Pathways Plan in response to a Senate request for a more complete analysis.  These interpretations are flawed. For example, Broadcast Journalism revenues only account for revenue generated by two courses, not an entire sequence. If this academic sequence is eliminated, roughly four times this income will be lost by the University.  This report implies that the normal annual equipment budget for the sequence is $154,000.  This is not the annual budget of the sequence.  Revenue generated by student fees is used to reduce the revenue-to-cost ratio rather than increase this ratio. 

            Attached is an analysis of net tuition revenue to instructional cost ratio data for the departments of the College of Arts and Sciences using the hypothesized 2.28 benchmark.  The control chart, the first chart shown, and its corresponding moving range chart, the second chart, clearly demonstrate that all College of Arts and Sciences departments meet the benchmark in a statistical sequence.  Furthermore, if this ratio is to be used to identify programs which are being subsidized at this university, it is instructive to compare the revenue-to-cost ratio data from the College of Arts and Sciences to the ratio for other colleges for which data has been provided. That data is in Table 1 below.

            In summary, academic programs in the college of arts and sciences operate in the black. Cutting these programs will cost The University money in the coming years.

Table 1. Ratio of Net Tuition Revenue to Instructional Salaries*

Loyola University                                  2.28

College of Arts and Sciences                 2.93

College of Business                               2.22

College of Music                                    1.36

*Ratios are based on data provided by the Provost's office. Data are not available for the College of Law or City College.