March 17, 2009
Spring Break is behind us, students abound, anticipating one last snow day. My Updates these last months have focused on Creighton’s fiscal wellness and our budget process. This one will be no different, yet it is written with greater certitude concerning the budget process. While there is much good news to share, which I will, the focus will be on the economic reality of the day
FINANCES AND BUDGET:
As mentioned, my past several Updates and the Convocation Address included descriptions of the financial challenges posed by both the current economic environment and the operational issues in the School of Medicine clinical practice, as well as steps being taken to address these challenges. It is important that I keep you updated on our progress in these critical areas.
The hiring restrictions announced last fall remain in place and have contributed significant savings in this year’s budget that will continue through the next fiscal year. Additionally, the voluntary separation program announced in December provided a jump- start toward retirement or new careers for the 22 participants, while at the same time producing annual budget savings for the University in excess of $400,000 starting in fiscal year 2009-10.
The Budget Committee has completed its review of the Financial Enhancement Plans submitted by each vice president, selecting initiatives for implementation that total $8 million in improvements beginning in 2009-10. This represents a little less than half of the total enhancements submitted and consists of $1 million of increased revenues from expanded enrollments in selected areas, $4 million of reduced spending on various operating expense items and $3 million of reduced personnel expenses, essentially related to vacant positions that will be held open throughout 2009-10 or eliminated.
Two other key elements of the 2009-10 budget reflects our focus on remaining affordable for students and their families even in the face of this challenging economy. First, our undergraduate tuition rate will increase a modest 3.5 percent in 2009-10, the lowest rate of increase in 46 years. In addition, we are supplementing our financial aid budget to allow us to respond to an expected increase in need resulting from diminished family resources.
To underscore the importance of providing resources for our students in need, the President’s Cabinet has agreed to an average 4 percent contribution from their 2009-10 salary base for a financial assistance fund for our returning students needing additional aid or resources. Anyone interested in participating in this effort is most welcome.
We will also be holding the line on expenses, with no salary merit pool increase and no general roll-on to non-salary expenses. The budget does reserve room for a merit-based bonus pool of $1.5 million, which may be distributed provided certain budget targets are achieved; definition of eligibility to participate and the specific budget targets triggering the distribution are being developed.
Efforts continue on several fronts to address the challenges faced by the School of Medicine, particularly in the clinical operations. A number of structural and governance changes are being developed to enhance the performance of the clinical practice as a true group multi-specialty practice that can compete more effectively in this competitive health care environment. Under the direction of Dr. Rowen Zetterman, who joined Creighton as Dean in January, the School of Medicine is building a strategy for operations that ensures the continued delivery of quality care and creates opportunities for market expansion.
Included in the School’s planning efforts is the development of sound business plans that will guide growth strategies in the education and research programs, as well as the clinical practice. Physician recruitment initiatives are being outlined for targeted areas to ensure the proper complement of faculty to execute the strategies. Another important element in the overall plans of the School is the involvement and cooperation of a strong partner in the operation of our primary teaching hospital, Creighton University Medical Center. Discussions regarding our hospital affiliation agreement are ongoing.
It is my hope that before the end of the school year, a thorough update on the status of CUMC’S hospital affiliation agreement with Tenet will be forthcoming. At this time, let me simply say: “We are not idle; there is a high-powered committee working on several levels toward possible resolution.”
A key aspect of the process for improving financial performance is an objective assessment of expenses and staffing in relation to revenue volumes. Difficult decisions will be required as expenses are aligned with available resources, as evidenced by the elimination of nine positions in the School of Medicine last week. While necessary for the fiscal health of the institution, these kinds of steps are difficult for everyone involved and require our compassion and assistance during the transition process. I would like to be able to guarantee that no further reductions will be needed, but that is just not possible at this time.
Obviously, these are very challenging times for our country, higher education in general, Creighton, and for all of us personally. Planning requires extensive flexibility as conditions continue to change, the corresponding impacts are assessed and additional decisions required. Our focus continues to be on preserving the core missions of the University and minimizing the negative impacts on our various constituents. Decisions to aid one group generally produce a negative effect on others, and it is important that a balance is maintained. I appreciate your understanding and ask for your continued cooperation as we navigate these challenges.
I continue to be bullish about Creighton; the University is strong and the foundation solid. This is not a time for hand-wringing or excessive worry, but the conditions do require vigilance and action on our part. I am confident that the steps we are taking will help ensure a successful future for this great institution.
PERSONNEL:
The search committee is continuing its work in identifying the next Vice President for Health Sciences. The committee is conducting additional interviews with finalists this week and hopes to make a recommendation to me in the near future.
Also, as announced earlier, Don Bishop, Associate Vice President for Enrollment Management, will be leaving Creighton in early June for a vice presidential position in Florida. Don has had seven very successful years overseeing Creighton’s enrollment and growth. His strategic planning, professional staff development and gregarious personality contributed mightily to Creighton’s present success. Thank you, Don, on behalf of a grateful University community.
ADMISSIONS/ENROLLMENT:
Despite the struggling economy, indicators for our 2009 freshman class remain positive. With about 25 percent of our deposits received, we have approximately 10 percent more deposits than we had a year ago at this time. Our regional receptions have been extremely well attended, and we are expecting record numbers at our Admitted Student Days. The profile of the admitted student population is similar to recent years with regard to academic quality and geographic and ethnic diversity. Our Financial Aid Office has been extremely efficient in getting aid packages to prospective students. We have received more FAFSAs than we had on April 1st a year ago and have financial aid packages in the hands of nearly all of those prospective student families filing for aid. Nationally, most institutions are down in deposits, so the next 6-8 weeks will be very telling as to how other institutions respond in providing enhanced aid. We have faith in our increased personalized recruitment efforts and enhanced merit scholarship plan; however, we will be monitoring many indicators as we journey toward May 1st.
Enrollment projections for all professional programs are on course to meet their budget targets.
CONSTRUCTION:
The Ryan Center/D.J.Sokol Arena project is moving right along. The exterior brick work is proceeding and the interior main floor is about to be poured. It is projected to be on schedule and ready for usage in August.
The report on the Sewer Separation Project is not so positive. The faculty/staff parking lot south of Burt could have the 25th Street access re-opened by March 24th. MUD has almost completed the water main upgrades. Burt Street at 20th is expected to open in early April. This is a weather-driven activity. When done, 20th Street to Webster and 20th Street to Cuming will remain closed. Burt Street is a priority because the second phase of sewer separation work may start in late March. This second phase will close Cuming Street until late fall 2009. Yikes! It is planned that 20th Street from Burt to Cass will re-open in July! Let’s hope that is the case.
SPRING BREAK SERVICE TRIPS:
This Spring Break, we had 230 students at 30 service sites around the country, plus three other Creighton service trips, one justice teach-in and a Habitat blitz build organized by the local chapter (and a Multicultural Affairs trip). These trips combined make this the highest participation over Spring Break ever. The trips were coordinated by Kelly Orbik from the Creighton Center for Service and Justice and all focus in some way on these seven pillars: Service, Solidarity, Justice, Community, Simplicity, Sustainability and Reflection.
Some of our students again stayed in Omaha and lived at the Siena-Francis House shelter over Spring Break. They gave themselves to learning about those in our midst who are most in need, not by being for them directly, but by first being with them.
Maria Teresa Gaston, the Director of our Creighton Center for Service and Justice, summed up the Spring Break Service Trip values. “Some discover they have a lot more in them than they thought. They taste a depth of friendship and sharing in community they had not known before. They learn how to facilitate reflection on daily experiences, pose or consider questions of life’s purpose and practice what they had not been motivated to consider before. Sociology, economics, anthropology, history, politics and religion come alive. Being a student, a citizen, a member of a faith community takes on a whole new meaning.”
Keep in mind these students raised money for these trips and paid to participate. I personally witnessed the power of their vision and zeal as I missioned them the evening before their departure. They are great witnesses to the Creighton mission lived out across the country.
This YouTube video on our Spring Break Service Trip “pillars” is quite wonderful:
http://www.youtube.com/watch?v=NZgwdjjriXE
ONLINE PROGRAMMING:
The Creighton Office for Online Learning (COOL), under the direction of the Graduate School, exists to provide development and support for online courses and programs consistent with quality educational programming and congruent with accreditation requirements. COOL is charged with providing a framework in which University resources can be leveraged for developing, evaluating, delivering and supporting quality online education grounded in the tenets of sound pedagogy, infused with Ignatian values, and centered on service to students and our disciplines and professions.
COOL is designed to be a “one-stop shop” for faculty and administrators seeking to develop online programs and courses. COOL has been charged with coordinating the development of online courses and programs, including policies, processes and faculty preparation for teaching in the online environment. This office serves as the resource for staff in assisting faculty in the creation of online programs and courses. Resources for current and prospective students seeking information and assistance related to online courses or programs at Creighton University are available here. See website at http://www2.creighton.edu/onlinelearning.
Well, that is it for the moment. As you can see, there is no dearth of activities keeping all of us busy. As mentioned above, I am bullish on Creighton; I am confident of a bright future for all divisions within the University. Again, I share these Updates so we all have the same information as we tell the Creighton story in the Omaha community. As always, you and yours remain in my prayers.
John P. Schlegel, S.J.
President