Securing the Future

Budget Update

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The Board of Trustees meetings this past weekend were focused and productive. Most of the discussions centered on Wesleyan’s response to the world economic crisis. As readers of this blog know, because of our endowment decline, we must deal with a significant reduction in revenue. In this economic climate we feel that it is not appropriate to try to compensate for this loss of revenue with a large tuition increase. Instead, we plan on a 3.8% tuition increase for next year—one of the smallest hikes at Wesleyan in decades. We also plan to increase the financial aid budget next year by more than 8%.

The trustees heard how we plan to bridge what now looks to be an emerging $20 million budget gap. I’ve discussed specific cuts in earlier posts and in a letter going out to our alumni today. The links below will take you to those documents. With the continued deterioration of the financial markets, we must be prepared for further, more difficult cuts, and we must redouble our efforts to create more academic programs throughout the summer so as to attract additional students to the university. We have no plans to add any more students other than phasing in the less than 5% per class growth we proposed in the fall. Over the last several months I have underscored our priorities in confronting the budget crisis: maintaining a strong academic core (teaching and research), providing an excellent student experience, and ensuring access to Wesleyan through a strong financial aid program. These will remain priorities as we decide how to deal with our budget shortfall.

On Sunday night I met with the students to talk through the process for determining the specific mix of budget changes that may become necessary for our long term planning. Student input will continue to be crucial in monitoring the impact of fiscal decisions on the lives of our young people. Later this week I will meet with the senior administrative staff to seek their input as well. I recognize that staff have already been working diligently to cut expenses, and I am grateful for their efforts.

Today I will meet with the faculty in an open meeting to discuss how we can ensure that our programmatic structures enable Wesleyan to deliver a great education in ways that maximize our resources. Faculty at schools like Wesleyan have a crucial role in governance, and I very much look forward to working with my colleagues to create a more solid foundation for our school in these very uncertain times.

In my last post I wrote that: “We must preserve our ideals and principles while remaining realistic about the sustainability of our economic model.” Finding the right mix of idealism and practicality has been a hallmark of Wesleyan grads for many decades. May we be inspired by their example, choosing the best of our history as we work together to lay the groundwork for the Wesleyan of the future.

http://www.wesleyan.edu/administration/securingthefuture/

https://roth.blogs.wesleyan.edu/2008/10/15/economic-realities-and-wesleyan-hopes/

https://roth.blogs.wesleyan.edu/2008/11/25/gratitude-and-legacy/

Consultations, Finals Prep, Early Decision


https://roth.blogs.wesleyan.edu/2009/02/24/trustee-time/

[tags] Board of Trustees, economy [/tags]

Trustee Time

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At the end of this week the Board of Trustees will come to town for its annual winter meeting. The February trustee conversations are usually focused on the budget for the next year, and this time, due to the economic climate, those discussions will take on a sharp sense of urgency. Although Wesleyan is fortunate to have generous supporters and a significant endowment, there is no question that its economic base has been shaken. Wesleyan now must make appropriate changes to its spending patterns to maintain fiscal stability, and we will be discussing the impact of such changes this coming weekend.

The trustees’ primary responsibility is fiduciary. They are entrusted with the future health of the institution, and their duty is  to ensure that the educational and economic capacity of alma mater will be passed on to future generations of students. Board members volunteer their time and their resources to help Wesleyan to both navigate difficult times and seize opportunities to advance its mission. Consulting with faculty, alumni, current students and staff, trustees make strategic policy decisions for the long term, and during these parlous times I know they feel the weight of that responsibility.

This meeting will begin with discussions of next year’s budget, but the issues to be considered have more widespread implications. Wesleyan has stood for something distinctive and admirable in American liberal arts education, and over the decades other schools have followed our lead. How we can continue to be a leader of creative, progressive liberal arts education while living within our means has always been a great challenge. We must preserve our ideals and principles while remaining realistic about the sustainability of our economic model.

With the intelligence and hard work of our faculty and staff, with the generosity of the extended Wes family, and with the thoughtful stewardship of our Board of Trustees, I am confident that we will strike the proper balance to meet these challenges.

[tags] Board of Trustees, budget, liberal arts [/tags]

Consultations, Finals Prep, Early Decision

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Over the last week of semester I’ve been meeting with different groups about our plans to deal with the impact of the economic crisis. (see: http://www.wesleyan.edu/administration/securingthefuture/ )

When I returned from California I had a long discussion with the Wesleyan Student Assembly. They had many good questions concerning the proposal I brought to the Board on how we would balance the budget over the next several years while continuing to protect and cultivate the core educational experience we offer. Although we talked about a variety of issues, the students returned frequently to whether we could successfully integrate an additional 30 students a year for four years. How much pressure would this put on our housing and dining facilities? How would it affect class access and the admissions process? These are all important questions, and we are drawing up plans in each of these areas to determine how we can temporarily accommodate an increase of about 4% to our student body.

Some commentators among trustees, students and faculty are reminded of the very rapid enrollment growth at Wesleyan in the 1970s, when the school more than doubled in size. I should make clear that we are studying a measured increase of only 4%, and we have no plans to go beyond that.

In the beginning of the week I met with faculty representatives and then with the faculty as whole. While I was traveling, there was considerable discussion online about the proposed salary freeze, the enrollment increase, and on whether there has been adequate consultation. Our face-to-face meetings turned out to be very productive. I underscored that the scenario I outlined to the board was a draft that we are open to revising – as long as we meet our budget obligations. There has been and will continue to be detailed consultation. The faculty members are clearly invested in working together to find a solution that will provide for the long-term health of the institution. Our professors take their responsibility to guide the university very seriously, and they are willing to join in making sacrifices as long as these will contribute to setting Wesleyan on a path to greater academic and economic strength. There are difficult trade-offs ahead of us, but I was reminded of how fortunate we are to have a faculty so devoted to our community.

At the end of the week I met with the senior administrative staff, to present these institutional leaders a sense of the economic challenges ahead. They, too, asked questions about potential enrollment increases, and about the possibility of a salary freeze. We are agreed on the importance of protecting jobs even as we become more efficient across the variety of departments. I made it clear that a potential salary freeze would start at the top – with me and with my Cabinet. But it is also important to recognize that those with the most modest pay are those likely to feel these changes most acutely. It’s for that reason we are exploring ways to mitigate the effects of any salary freeze on our most vulnerable employees.

While I meet with various stakeholders about the budget, most of the people around me are preparing for finals or grading them. Many students are putting the finishing touches on papers, performances and experiments, while others are up late cramming for those big exams. There is plenty of pressure, but we all know the holiday break is fast approaching.

While our students and teachers are finishing their work for this semester, lots of high school seniors are opening envelopes telling them that they will be starting their undergraduate education in Middletown next fall. The first round of Early Decision is complete, and our Admissions Office reports that the great surge in applications (over 35%) also resulted in an extremely talented pool.  I very much look forward to welcoming these first members of the class of ‘13 into the Wesleyan family!

Good luck with the final push, and HAPPY HOLIDAYS!!

[tags] economic crisis, Wesleyan Student Assembly, salary freeze, enrollment increase, early decision [/tags]

WESU from the West Coast

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I write this post from Los Angeles, where I have been visiting with alumni and other members of the Wesleyan family. When I’m on the road, I often listen online to WESU, our wonderfully creative and original radio station. Not only does WESU bring us international, national and local news from perspectives we otherwise might not hear, they offer genuine community-based radio. I am grateful to station manager Benjamin Michael and the volunteers who keep WESU a vital source for radio that makes a difference in Central Connecticut.

 

Anna Gevalt ’09 performing at WESU
Anna Gevalt ’09 performing at WESU

Like all community-based radio, WESU depends on our support. Through December 14 the station is holding a pledge drive. To show your support for WESU, donate online at www.WESUFM.org or call 860-685-7700 during the drive and make a pledge. Premiums will be offered for donations of $20 and above. I just called in my pledge. Won’t you please help?

Last night I was asking for help when I met with more than 200 alumni in Los Angeles. I’ve been talking with writers and editors, teachers and musicians, producers, doctors and yoga instructors. It is a difficult time to ask for support. Many of the people I’ve met here are frightened by the financial turmoil and concerned for their livelihood. All agreed that we are in the midst of the most serious financial crisis in generations. Still, the loyal Wesleyan community members with whom I am meeting are eager to hear about what’s happening on campus and willing to lend their financial and moral support. It is especially gratifying to see this expression of generosity during these challenging times.

After a quick stop to meet with our San Diego alumni group, I am heading back to Middletown. It’s always great to be back in California, but I am eager to return to campus for this weekend’s production of The Threepenny Opera and the other end of semester events.

I’ll also be meeting with student, faculty and staff groups to discuss our budget proposals. We still have a couple of months before presenting our next draft budget to the Board in February, and I am eager to hear new ideas on how we can deal with the substantial fiscal challenges ahead of us. The proposals that I shared with the Wesleyan community represent one scenario to deal with these challenges. We will continue to develop these ideas with input and imagination. Input and imagination – just like WESU!

[tags] Los Angeles, WESU, Anna Gevalt, pledge drive, alumni, economy, San DIego, The Threepenny Opera, budget [/tags]

Gratitude and Legacy

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An e-mail message is going to the campus today summarizing some of the conversations we had over the past weekend with the Board of Trustees. Our major theme at the board meeting was the challenge of the current economic climate. We are faced with reduced income from our endowment over the next few years and a challenging environment in which to raise money for our financial aid program. We have proposed a group of budget cuts, a salary freeze for next year, and a modest and temporary increase in the size of entering classes for four years. More information on these proposals can be found at the Securing the Future website: http://www.wesleyan.edu/administration/securingthefuture/112508.html.

The trustees have a tremendous responsibility for Wesleyan. Our job is to ensure that the quality of the education we offer remains at the highest level, and that it is sustainable for generations to come. We are protecting our core values: access to Wesleyan regardless of ability to pay, and first-rate curricular and co-curricular programs for faculty and students who are advancing their fields through research and creative work. This is the legacy we have inherited, and it is the future we are building.

After the long and tense discussions of the weekend, I went to the Freeman Athletic Center for a little exercise. As I looked back across the campus on a beautiful and brisk fall evening, I felt very lucky to be at Wesleyan. Working together with a talented group of faculty, staff, students and trustees, we will chart a course in these turbulent times that combines prudence and ambition, idealism and practicality. We will not only preserve the precious legacy of this university, we will build upon it. The progressive liberal arts education that we offer, an education that enables graduates to lead meaningful lives and contribute to the world around them, has inspired generosity and hard work from families and faculty, from staff and from students.

As we approach the Thanksgiving holiday, I am so grateful that I work in a community with a legacy and prospects for the future like ours. Happy Thanksgiving!

[tags] Board of Trustees, economy, endowment, financial aid, Securing the Future, Freeman Athletic Center, Thanksgiving [/tags]

Wes Coast-to-Coast

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I am writing this from the airport in San Francisco, at the end of a West Coast trip to see alumni and parents. Although I am eager to get home, it is always informative to visit with our far-flung Wes community. In the Pacific Northwest, I met with grads who have been out for more than 50 years, and others who just finished up in the spring. There were lots of questions about how the international economic downturn is affecting alma mater, and plenty of generous support—despite the fact that many of these same people are feeling the crisis in their own budgets. In Seattle I was particularly impressed with the growing network of professionals in a wide variety of fields who reach out to help new Wesleyan alumni arriving in Washington or Oregon.

The San Francisco reception took place at the spectacular new Academy of Sciences in Golden Gate Park, a great accomplishment of architect Renzo Piano. Some Wesleyan friends were kind enough to host the reception there, and we had more than 300 attendees. Here, too, people wanted to know about economic issues, and again there was great support for building a robust financial aid program for the future. We talked about the seven planning areas that I’ve written about before on this blog, and there was a great deal of excitement about the College of the Environment and the other initiatives.

It felt strange to be back in the Bay Area with a rented car, scurrying around like a tourist in the place that had been my home for 7 years. I did have a moment at the end to visit California College of the Arts and my old friend Steve Beal, now the school’s president. CCA is thriving, and it was delightful to see some of the projects we began a few years ago now working so well.

I’ll be glad to return to Connecticut for this weekend before Election Day. Many faculty, staff and students are engaged in getting out the vote. The Wesleyan Student Assembly canceled its Sunday meeting, and each member instead is spending three hours this week in community service or civic activism. WSA VP Saul Carlin ’09 reports the following:

“Here are a few examples of the types of activities WSA members may be engaged in:

My flight is about ready to board. Can’t wait to be back on campus!

[tags] West Coast trip, international economic downturn, Academy of Sciences, Golden Gate Park, financial aid, seven planning areas, College of the Environment, California College of the Arts, Steve Beal, Election Day, Wesleyan Student Assembly, Saul Carlin ’09, community service, civic activism, voter registration, mentoring [/tags]

Economic Realities and Wesleyan Hopes

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The economic turmoil of the last several months has shaken our confidence in the future. As we turn to see our retirement savings depleted, or as we recognize job loss and diminished expectations, it is difficult to know where to turn for a reasonable basis for hope.

At Wesleyan, I have spent a good part of the last year planning for the future, working with colleagues to put the university on a more secure economic foundation, to develop new curricular initiatives that are exciting and dynamic, and to expand our facilities in the sciences in a dramatic way. Some of these projects (the Molecular and Life Sciences Building being the largest by far) have been discussed by faculty, alumni and trustees for many years. Others, like the decision I made last year to expand our financial aid program to reduce our reliance on required loans, are new programs that promote a core university value. We have created faculty working groups to promote creativity, civic engagement and internationalization, and to develop ideas for a College of the Environment. In this time of economic disruption, what happens to all these plans?

I don’t want to minimize the impact of the economic situation on Wesleyan. A good portion of our annual budget comes from the generosity of our alumni and parent base, as well as the return on our endowment. Fundraising will be difficult this year, we expect, but we remain confident that the extended Wes family will recognize how important their gifts are in this climate. Our endowment, already down last fiscal year, has taken a hit in the first quarter of this one. Although we fully expect the investments to recover over time, there will be a period of smaller returns from the endowment going to support the operating budget.

This means there will be cuts in the Wesleyan budget, but, as I said in my last post, I will do my best to protect teaching, research and the student experience from the impact of our cost cutting measures. Over time, we will shift more of our fundraising efforts toward building the endowment, rather than supporting current spending. This will allow us to build economic capacity for the long term. We will continue to offer our community the very best liberal arts education, but we must do so in a more cost effective way. We must delay for some years our major facilities projects, like the Molecular and Life Sciences Building, and we are looking at every department at the university for budget savings. We are also looking for revenue opportunities, particularly in the summer months

What happens to the great hopes and plans of the last year? I believe we must continue to be ambitious, and that we must develop new programs through, when necessary, a reallocation of resources. We will continue to offer a robust financial aid program, and we remain committed to hiring and retaining a faculty dedicated to advancing their own fields while they make a powerful impact on the lives of their students. I believe we can continue to internationalize our campus while enhancing creativity and civic engagement in the curriculum and in the community. We will continue to focus attention on enhancing the experience of our students, especially in their frosh and senior years. And though there may be delays in realizing the vision for a College of the Environment, I am confident in the merits of developing this broad based, interdisciplinary environmental studies program.

In challenging economic times, it is more important than ever to enhance one’s core competencies and build a platform for innovation. These next few years will be difficult ones, but with the talent, energy and generosity of the Wesleyan community, we will emerge from this economic turmoil an even stronger, more dynamic institution. This is our reasonable basis for hope.

[tags] Economy, Molecular and Life Sciences Building, financial aid, College of the Environment, fundraising, endowment, budget [/tags]

Economic Dissonance and a Community in Tune

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Sunday night I spent an hour with the Wesleyan Student Assembly, answering questions on the recent Board of Trustee’s retreat and on the general state of the university in this time of economic turmoil. I am always impressed by the WSA’s combination of organization, feistiness and school spirit. They are devoted to our university, and they are eager to explore ways of making it an even better place to live and learn. The student body can be proud of its elected representatives.

A concern of many of our students, faculty and staff is the effects of the contemporary economic turbulence on Wesleyan. We discussed this at length with the trustees last weekend. The university’s endowment declined almost 4% in the last fiscal year (ending 6/30/2008), and the first quarter of this year has been dismal. Wesleyan does not currently face short-term liquidity issues, but we are monitoring that situation closely. Over the next months we will be developing the budget for next year, and we will have to make some cuts to bring it into balance. My priority is to protect the core academic mission from serious budget cuts, but we will certainly have to delay some of our long planned facilities projects. In times of economic distress fund-raising is even more challenging than usual. However, our generous family of donors also understands that at a time like this their gifts are more meaningful than ever. We depend on their generosity.

While uncertainties in the economy rattle the world, many turn to the major political choices we face in the coming month. Well over 100 people gathered in the Usdan University Center last week to watch the recent Vice-Presidential debate, and the voter registration efforts on campus are in high gear. Wes students are finding their political voices as they debate the issues and ponder the future.

Even as we are part of the system affected by the recent credit crunch and market slide, there is a sense in which Wesleyan remains an oasis from these preoccupations. The culture here continues to thrive in so many interesting ways! For example, as I stroll around the campus on a weekend I am struck by the rich diversity of sound one hears. Whether it’s in the CFA’s Indian music and art festival, a jam session on Foss Hill, or in a raucous Eclectic dance party, there are dozens of people at any given time making music on this campus. Students, faculty and staff are picking up guitars and drums, horns and fiddles (and more than a few laptops!), joining together to create joyful sounds. When we make music we’re also making community, finding one another as we get in tune, and inviting others into our circles as listeners, dancers, new members of the band.

Speaking of joining musical groups, I am going to sit in with Busted Roses for a gig at Usdan on Oct 16. I posted a blog about this “geezer rock band” a few months ago, and now I will be challenged to keep up with these excellent musicians.

[tags] Wesleyan Student Assembly, economic turbulence, Vice-Presidential debate, music [/tags]