This is a reasonable question as it would be easy to assume that our overall costs at MSJA are reduced during the temporarily staggered opening of the school year, but that will not be our actual experience.
By way of explanation, it may be helpful to consider the fact that expenses at MSJA fall into one of two categories: Fixed Costs and Variable Costs.
Fixed costs are the type of expenses, which are incurred regardless of the type of education or to a large extent the number of students enrolled. For example, salaries & benefits; internet access fees, insurance, etc.
Variable costs have a degree of fluctuation depending on the type of programming that we provide and to a limited extent to the number of students present in the school. For example, field trip expenses, electricity, water, photocopies, etc.
At the Mount the vast majority of our expenses are actually fixed expenses. Salary and Benefit expenses paid to the faculty and staff account for nearly 70% of our annual budget. Faculty will continue to instruct our students at 100% capacity through in-person and on-line instruction. The other types of expenses categorized as fixed expenses combined with Salary and Benefits account for nearly 90% of our total budget.
We have realized some costs savings on our variable expenses. For example, our electricity and water usage rates may be down, but they will not be fully eliminated. Likewise we may save money on things like busing and photocopies.
However, the school in the current year, and in the upcoming year will incur expenses to address the pandemic that we normally would not have incurred. These pandemic related expenses will EXCEED the savings gained in the variable expense category. For example:
Upgrades are being made to the HVAC systems throughout the building to improve the filtration capabilities of the AC/Heating systems. These upgrades are a significant investment of funds, but these upgrades will reduce (not fully eliminate) the majority of airborne pathogens circulating throughout the building.
The Board approved upgrades to our IT infrastructure which will allow us to build out and offer a more robust distance learning program to provide for a maximum view of and engagement in the classroom.
Additional funding has been added to the Needs Based Scholarship Fund, to provide additional assistance to our MSJA Families suffering job loss/reduced wages due to the COVID 19 pandemic.
These are just a few examples of additional costs incurred to respond to the changing landscape of providing education services in the face of this pandemic. The cost associated with these examples exceed any savings that we have been able to achieve in our variable cost categories. As we plan for and start the next school year, there will be other unexpected costs that will be incurred by the school. For this reason, distance learning discounts are not possible because there has not been an overall reduction in the costs associated with managing our programs.
Our objective is to bring 100% of our student body back on campus safely as soon as possible. Thank you for your continued support and dedication as we navigate through these challenging times.