ÐãÉ«¶ÌÊÓƵ

Report to the Board of Trustees – April 2019

Thank you, Mr. Chairman,

It has been a long winter.

But now we are finally seeing signs of rejuvenation and the promise of renewal in the near future. There will still be grey days ahead, but they are becoming less and less common.

We know that the change in seasons brings with it more work. We need to finish clearing away the winter’s leavings and prepare for increasing sunshine and a warmer climate

Then we can turn to the new and exciting work on strong and steady growth.

You realize, of course, I am not talking about the weather.

A metaphorical springtime has come to ÐãÉ«¶ÌÊÓƵ. I would like to share with you some of the early signs of the new season.

Earlier this month the Higher Learning Commission delivered its analysis and response to our interim reports submitted last December on 1) academic program review, 2) shared governance, and 3) finance.

In each case HLC concluded: “No further reports are required on this topic. The institution’s next reaffirmation of accreditation is scheduled for 2022-23.”

On academic program review, the report says:

• “Program review at ÐãÉ«¶ÌÊÓƵ, as described in the report, is rightly faculty-driven in terms of process, while, at the same time, involving appropriate administrative examination and input, with final determinations from the Board of Trustees.”
• “The institution has developed and implemented a comprehensive and sustainable program review system, one with a defined set of procedures and common data sets.”

On shared governance, the report says:

• “The University has in place structures for shared governance that appear consistent with good practice and are memorialized appropriately in practice.”
• “These are salutary actions on the part of the administration and the Board and, if continued in kind, should work to re-establish confidence in shared governance.”

On finance, the report says:

• “It is apparent…the institution acknowledges the financial challenges it faces and has taken steps to address these, primarily through very prudent financial management.”
• “Taken as a whole, the body of evidence…indicates that (the University) is effectively addressing one important aspect of its finances, specifically, controlling/managing costs.

The HLC reports are very good news for everyone, and the community, students, faculty and staff can have renewed confidence in the future of our university.

We owe a special thanks to Executive Vice President Dr. Rex Ramsier, his team, and everyone who contributed to our HLC reports for this salutary outcome.

On a different note, I would like to thank Faculty Senate for its action last week to form a team of people from various parts of the University’s shared governance structure to offer some assistance in our ongoing and extensive efforts related to student enrollment, retention and graduation.

I appreciate their shared sense of urgency, as succeeding on those fronts will help us further address the financial challenges we face.

Today in new business, we will propose a revision to the General Fund budget, adopted by the Board last June. This re-budgeting recognizes a series of positive changes and efforts since the budget was adopted.

Back in June, we anticipated a draw on our General Fund reserves of up to $16 million. I am happy to report we now anticipate using about $4 million in General Fund reserves.

This circumstance reflects a continuing and significant cultural change at ÐãÉ«¶ÌÊÓƵ: our administrators, faculty, contract professionals and staff are committed to working within their budgets, spending wisely, and focusing on results.

Now is the time to institutionalize this culture of fiscal responsibility and continue to connect planning and budgeting.

As part of this new approach, I anticipate that we will regularly revisit our budget during each fiscal year to take into account changing circumstances.

As you know, we are in the process of creating the FY2019-20 budgets, which we will bring to the Board in June 2019.

It will fund our priorities identified in the University, college and unit action plans: increasing student success, academic distinctiveness, revenues, efficiency and effectiveness.

The general fund budget for next year continues to address our long term-structural deficit by reducing General Fund expenditures and its support to our auxiliaries by $15 million.

Although we will not have across the board reductions, all elements of the university will participate in these changes. The deans, vice-presidents and other administrators have submitted their recommendations and we will work closely with them as we develop the budget.

As a public university, our fiscal health also is affected by decisions made in Columbus concerning the state budget. I now ask Lisa Dodge, vice president at Sean P. Dunn & Associates, to come to the front of the room and give us a brief overview of the state’s FY 20/21 Operating Budget.

[Lisa Dodge speaks]

Thank you, Lisa.

It is important to note that the recently announced Voluntary Separation or Retirement Program (VSRP) will not be part of our budget reductions in the next fiscal year. The effects of the VSRP will occur during FY21 and following years.

Let me briefly review the VSRP.

Eligible faculty have until May 31, 2019 to consider if they wish to participate. But they will remain in their positions until May 31, 2020.

This year-long period will give participating faculty, their colleges and departments, and the administration 12 months to plan and adjust.

The RSVP program provides a payout of 100% of annual salary to participating faculty in two installments, July 2020 and January 2021.

Because it is entirely voluntary, it is hard to predict exactly who will participate. However, we estimate a 15-percent participation rate, which equates to about 3% of the current number of total full-time and part-time faculty.

The VSRP program will give ÐãÉ«¶ÌÊÓƵ the flexibility to invest in new faculty in the future. And that investment strategy is central to our action plans.

At a time when some faculty are accepting the VSRP offer, we are currently searching for 32 new positions that begin fall 2019. And we want to retain faculty in areas identified for strategic investments, so the VSRP offer has not been extended to them.

Once the VSRP window closes next month, we will identify new or continuing areas of investment and authorize new faculty searches beginning in the fall of 2019, with the new members anticipated to be on campus by fall 2020.

Such investments also include searches for deans of the:

• Lebron James Family Foundation College of Education;
• the College of Business Administration;
• and the College of Health Professions;
• plus a director of the School of Nursing.

There are also some encouraging signs in terms of revenues. As of today, we have a three percent year-to-date increase in freshman confirmations, and registration of continuing students in good standing began last week with a very strong promotional push that will continue through the remainder of this semester.

We will continue to pursue our aggressive strategies on enrollment in anticipation of the May 1 National Decision Day as well as activities to improve persistence and retention for fall 2019.

In this regard, we have new resources with which to pursue these strategies. Since the first of this year, we have received nearly $2 million in gifts for scholarships.

These include:

• $500,000 from an anonymous donor for special assistance to freshman applicants;
• $100,000 to support the Bruce Rogers Honors Scholarship;
• six additional non-endowed and three new endowed scholarships.
• In addition, two gifts totaling $15,000 have recently been received for ZipAssist.

Innovative academic programs are also under way. For example:

1. Certificate in Biomimicry offers all undergraduates an opportunity for a 15-credit, interdisciplinary program that has applications in fields as diverse as aerospace, construction and computing.
2. Bachelor of Allied Healthcare Administration will be offered to working administrative professionals who want to advance within their own companies. More than 90% of this content will be delivered online, making it even more attractive to full-time employees.
3. Bachelor of Business Administration in Business Analytics Degree is direct response to the needs of business and industry. Our program is noteworthy in that many departments, not just one, will participate. Consequently, graduates will be able to apply their knowledge in almost every business field.
4. Master of Applied Politics program is being modified to enable students to move through the program as a group, or cohort, while also allowing them to take 5 courses 100% online, via synchronous distance learning, internship experiences and through low-residency. This change also will allow the degree to be offered outside of Northeast Ohio.

Conclusion: Restatement of Spring Theme

I opened this report with a metaphor about springtime. I would like to close it in the same manner.

One of the most important aspects of spring is that it is a season of planting.

And we shall do our share of that by holding our Spring Commencement Ceremonies May 10-12, and the School of Law Commencement on May 19.

We will confer degrees on 2,692 graduates. That’s a lot of seeds.

Some will catch the wind and be transported across the country and even overseas. Most will take root right here in Northeast Ohio, where their careers will grow and thrive.

There is quotation, often cited as a proverb from Ancient Greece, that says, “A society grows great when elders plant trees in whose shade they know they will never sit.”

Trustees, I invite you to join me at commencement next month, to see the trees we are about to plant.

Mr. Chairman that concludes my report.