Back in the black

For the past few years, directors of the ASUW's Experimental College and Bike Shop have been working to make their programs true "net-zeros," meaning the programs could ideally take in as much money as they spend. Now, the Experimental College and the Bike Shop have a new goal in mind: profitability.

This quarter, for the first time in more than a decade, both the Experimental College and Bike Shop will be running in the black, actually making money for the ASUW rather than seeking funds to cover financial shortcomings.

The current financial windfall is a far cry from fall 2000, when the ASUW's financial woes were brought to light."The rate at which the ASUW was losing money meant we would go bankrupt in a year and a half," said Tim Erickson, manager of the ASUW Bike Shop. "The school was threatening to step in."

This realization resulted in the closure of the third net-zero, ASUW Publishing, during fall 2000. The action is estimated to save the ASUW $60,000 annually. It also prompted the ASUW Board Of Directors (BOD) to demand more accountability from the remaining net-zeros.

For Erickson, it meant a change in his management style. He reduced the number of employees working at one time, cut the shop's hours, raised prices and made sure customers were accurately billed. He also credits the mild Seattle winter for improved business. These factors helped the Bike Shop cut costs and raise profits. The result?

"We're going to come out with a surplus for the first time in over a decade," said Erickson.

The financial year ended June 30, and the surplus should be as much as $2,000 for that time period.

For the Experimental College, the battle to turn a profit is fought every quarter, rather than yearly. Following the BOD directives, former Director Stephanie Simpson instituted a complete restructuring of the program, downsizing the staff from 15 to 10 and cutting overhead costs.

Despite the cuts, the number of classes offered by the Experimental College has actually increased since the restructuring. According to Erickson, it was Simpson's initiative that made the college's newfound profitability possible.

Now the Experimental College is reaping the rewards of the restructure."If the registration projections are accurate, we will hit zero no problem, and we'll probably make money," said Tiffany Benson, a junior international studies major serving her first quarter as director of the Experimental College. "But we're being conservative in our budget estimates," she added.

The college's finances are very simplified. The college makes its money from the enrollment fees charged for each class - $5 for UW students and $10 for non-students - and from room-rental fees.

If this amount exceeds the college's expenditures -- specifically publishing and mailing 100,000 copies of the college's registration catalog and paying staff salaries -- the college turns a profit, which goes into the ASUW general fund.

The ASUW Experimental College dates back to 1968, when it was started by a group of UW graduate students who were seeking an alternative to the traditional education provided at the UW. The college offers an eclectic mix of not-for-credit classes from art to yoga.

Originally, the program offered about a dozen classes; now, the number of courses offered exceeds 200. Close to 4,000 people are enrolled every quarter, of whom about half are UW students.

Now that the Experimental College and Bike Shop are financially self-supporting, they are no longer in danger of being shut down. As for ASUW Publishing, it remains closed indefinitely.