Dear Colleagues,

Thank you for the dedication, passion, and expertise you bring to Stevenson each day. Because of your efforts, our school remains a place of excellence, purpose, and joy for our students.

Following this afternoon's all-staff and faculty meeting, I want to thank everyone who attended. Your presence and engagement are deeply appreciated. For those who were unable to join us, please don't hesitate to reach out to your division head or supervisor with any questions about the updates we shared.

As we continue to pursue academic excellence and deliver a transformative educational experience, we need to ensure that our operational model evolves in response to changing market conditions and enrollment trends—and that it supports the long-term sustainability of our program.

Our shared commitment to excellence was affirmed by our recent accreditation process with the Western Association of Schools and Colleges (WASC), which recommended a closer evaluation of Stevenson's educational and financial models. This recommendation echoes internal conversations already underway and reinforces the importance of aligning our programs with current realities and our responsibility to steward school resources wisely.

In addition to these internal goals and external guidance, Stevenson—like many of our peer institutions—faces financial pressures that require thoughtful and proactive planning. These include:

• A projected decline in net tuition revenue due to shifts in enrollment and financial aid levels.
• A significant increase in property and fire insurance premiums, driven by California's wildfire risk.
• A need to provide for increasing deferred maintenance and other significant facilities-related costs.

In response, and as part of our commitment to long-term planning and mission-centered decision-making, we will implement the following adjustments:

All School Faculty and Staff Compensation

All returning faculty and staff will receive a salary increase for the 2025–26 school year. The average increase is 3%, with higher increases for those earlier in the salary scale and slightly smaller increases for those at or near the top. We understand the high cost of living on the Monterey Bay Peninsula and remain committed to recognizing and supporting your invaluable contributions. Stevenson's salaries continue to meet or exceed those offered by peer independent schools on the Monterey Bay Peninsula. Another important point to note is that we will increase the monthly housing subsidy for non-resident employees to $330 per month or $3,960 annually (an increase of 10%).

Retirement Benefits

For the 2025–26 school year, in order to support a balanced budget, we will preliminarily set the school's retirement contribution cap at 6%. While this cap will be effective beginning on July 1, 2025, this adjustment reflects our current financial planning and will be finalized once enrollment numbers are confirmed in late August. Eligible employees will continue to receive a 3% contribution during years 1–5 (following the first year of employment, unless joining from another educational institution).

As we look to the future, a committee of administrators has been tasked with a deeper review of the entire benefits package. Members of our faculty will be added to this committee at a future date. This effort is ongoing and will include the opportunity for all employees to provide input. However, for the reasons we have shared (enrollment shortfall, insurance increases, etc.), it was necessary to make these particular adjustments now for the 2025/26 budget year.

Despite this change for next year, benchmarking studies show that our contribution remains on par with, and in many cases stronger than, those offered by peer independent schools both regionally and nationally—and does not require an employee match, which is rare in independent schools. This allows us to maintain a competitive total compensation package while ensuring the long-term financial strength of our school.

Thank you again for your continued partnership, your trust, and the passion you bring to our community. Together, we will continue to build a future that reflects our mission and values.

With appreciation,

Dan Griffiths
President