December 8, 2008

It has been a few weeks since my last Update.  We have celebrated Thanksgiving and we are preparing for the end of this very historic semester.  As our nation is poised for a change in administration, with all of the accompanying hope and anticipation, the nation’s economy remains on fragile ground.  In what follows, I will address Creighton’s present financial situation as well as other useful updates.  As you know, I write these updates so you have timely and accurate information in helping to tell the Creighton story in the broader community.

I returned recently from a three-day meeting of the National Association of Independent Colleges and Universities, of which I serve on the Executive Committee and chair the Policy Analysis and Public Relations Committee.  While it gives little solace, suffice it to say, the mood was funereal. All institutions have concerns about the erosion of endowments, the uncertainty of January retention and fall enrollment, and uncertainty regarding faculty and staff issues.  In retrospect, Creighton is no better or worse. One thing was evident: Our actions in early October announcing possible financial softenings were viewed as being proactive and out front of most institutions.

FINANCIAL CHALLENGES:
On the financial front, we are moving forward with efforts I first outlined back in October to address the impacts of the negative economic environment.  Since that time, there has been a steady stream of reports about other institutions taking similar steps to position themselves to weather the downturn.  While none of that makes our challenge any easier, there is perhaps some solace in knowing we are not alone. 

The announced hiring freeze is currently in effect, with some exceptions being made in instances where revenues are affected or there is a critical function that cannot be handled effectively in other ways.  Capital projects not already under way have been suspended as the budget committee prepares to review the list of planned projects and determine which should move forward.  The Ryan Athletic Center/D.J. Sokol Arena, which began construction last summer, will continue as planned toward an expected August 2009 completion.

Financial enhancement plans submitted by each vice president will be reviewed by the budget committee over the next few weeks to identify which proposals should be accepted.  The plans present opportunities to improve operating results beginning in fiscal year 2008/09, with the full impact of the plans affecting fiscal 2009/10 and beyond.  Although it is likely that the most significant effects we will experience due to the economy will first surface in fiscal 2009/10, some will appear sooner and we do expect to incur a deficit in the current fiscal year related to the School of Medicine clinical operations.  Numerous efforts are under way to address the clinical challenges.

The budget process for fiscal 2009/10 is under way as well.  The process will be anything but typical this year, as the committee incorporates the financial enhancement plan review into the usual balancing process.  It will be especially challenging this year as we try to balance the fiscal realities of our students and their families with the resource needs of the University.  The committee’s deliberations will continue through at least January 2009 before the 2009/10 budget parameters are established.  Some decisions may be finalized and communicated as the process moves along.  It will be difficult work, but I am confident Creighton will emerge from the challenges as an even stronger institution.

ENROLLMENT:
The faculty and staff at Creighton have worked hard this fall to help students and families deal with the added pressure of the economy. More than ever, it has been essential to our success that we reaffirm the value of a Creighton education to our students and parents.  Our current assessment is that Creighton will retain at least an equal number of students as it has in the past few years—during which we have set new records in retention and achieved a graduation rate of 76% (placing us in the top 5% of the nation).

Freshman applications for the Fall of 2009 are already at 3,515—the second highest ever in our history. The 3,515 freshman application count is larger than any previous end-of-May total with the exception of last year’s record.

We are still behind last year’s second-Monday-of-December record application pace by 4%. However, in early October we were 12% behind. We have been gaining ground in the past ten weeks. This is a dynamic time for applications and we will understand more about our final application pool in the second week of January. We certainly believe we have the applicant pool with the right financial aid and merit strategies to accomplish our goal of 1,000 freshmen. As a prudent act of financial management, we have also disciplined our budget and based our expenditures on a revenue base of 950 freshmen. Accomplishing 1,000 freshmen will set an all-time historical new student record. The class that just enrolled this fall was our second highest ever with 985 (the record is 989 set in 1979).

CONTINUED COMMITMENT TO FACULTY AND STAFF EXCELLENCE:
As I have said before, faculty and staff are the backbone of this University and your insights are invaluable as we work together to continue to improve the Creighton University work environment. Groups of your colleagues from across campus have analyzed your input from recent workforce surveys and have recommended two areas of focus: valuing/recognition and improved internal communication. Jeff Branstetter, executive director of Human Resources, and Kim Manning, assistant vice president for Marketing and Public Relations, have been leading these efforts. Activities are ongoing, but I am encouraged by the progress to date.

We have been blessed in these challenging economic times to be able to expand and improve Creighton’s employee benefit programs and wellness initiatives, as faculty and staff have requested. No increase in health insurance premiums, health savings accounts, free tobacco-cessation programs, enhanced preventive dental care including orthodontia for dependent children, and free flu shots are just a few examples. Our new online self-service employee data and employee assistance enhancements are additional demonstrations of how much Creighton University values faculty and staff. 

Other areas targeted for improvement are more comprehensive efforts to recognize people across campus, better training and development opportunities and focused attention on communication between managers and their teams. I am pleased that we can show our appreciation for your hard work in these ways, because the University would not be what it is today without your efforts.

Internal communication, which is everyone’s responsibility, creates a more unified campus. To that end, several important improvements will be launched before the end of the fall semester. Creighton Today (http://www.creightontoday.org/) has been enhanced to inform and better engage faculty and staff. New elements focus on people and programs, and additional features include Ignatian notes, health and wellness information, links to the University calendar and media highlights. As the University’s online internal newsletter, the redesigned Creighton Today is your primary source for campus news.

The University-wide easy-to-use calendar (http://calendar.creighton.edu/) has also been very successful as a “one-stop” site to communicate campus activities.  In addition, new processes for campus-wide e-mails will allow you to choose the types of e-mails you wish to receive.

These changes, generated by faculty and staff, adopt “best practice” thinking and reflect integrated planning across divisions. I will keep you informed of other enhancements as they develop.

I thank our workgroups for their efforts and appreciate the plans put forth to validate Creighton University’s commitment to you, our outstanding faculty and staff.

ACADEMIC SUCCESS:
Creighton has had an excellent year in the education mission.  By all outcome measures, our students are performing at an outstanding level.

Law:  90% overall first-time bar passage rate; 88% in Nebraska and 100% in Iowa.
Medicine:  98% passed Step 1 and Step 2CK of the USMLE on first attempt, outpacing the performance of their national peer group.  On the USMLE test for clinical skills, 99% passed on first attempt.
Pharmacy:  On national board exams for licensure, 98.6% and 97.6% passed on the MPJE exam. 
Occupational Therapy:  91.9% passed the NBCOT exam.
Physical Therapy:  97.7% passed the FSBPT, the national board certification.
Nursing:  Pass rate for RN licensure exams:  December ’07 grads – 95.24%; May ’08 grads – 93.33%; August ’08 grads – 100%; Nurse Practitioner certification exam – 100%. 
Dentistry:  Part I on national boards, 97.7% passed on first attempt (national average 96.3%); Part II, 100% passed on first attempt (national average 93.6%).

With that said, I will conclude this Update. There are several other announcements and holiday greetings pending before the Christmas break. Again, thank you for what you do to continue to make Creighton an outstanding institution on so many fronts and in so many ways. Peace!

John P. Schlegel, S.J.
President