Praise for Rider’s Prudence and Cooperation at University Update Address
Collaborative contingency planning and disciplined budgeting have helped Rider University weather the turbulent economic times thus far, according to President Mordechai Rozanski, who spoke to an audience of administrators, faculty, staff and students at the University Update Address in the Bart Luedeke Center Cavalla Room on Tuesday, April 21. And while challenges and uncertainties remain, Rozanski said that given the clouds darkening the landscape of higher education, he would “frankly prefer to be at Rider right now than anywhere else.”
The reason, Rozanski explained, is the cooperative spirit with which the University is addressing the challenging economy. “Our community embraced contingency planning as early as last summer and fall,” he explained, offering his gratitude to the Rider community for its “advice, support and collegiality” in helping administrators make and implement difficult budget decisions. These choices, Rozanski continued, are helping Rider to manage its finances in a disciplined fashion, without needing to resort to the severe measures being undertaken at other institutions.
Rider’s approach has included a “hiring chill” – the temporary deferral of a number of faculty and staff positions – as well as budget constraints involving selective reductions in operating and facilities expenditures, and a salary freeze for the vice-presidents and the president in the coming year. “These steps will allow Rider to keep tuition competitive, make critical investments to maintain affordability for our students, and sustain the highest quality educational experience reasonably possible,” Rozanski explained. “I believe that we have an effective plan in place to achieve this goal, and preliminary results indicate that we are making good progress.”
Rozanski stated that as part of contingency planning, Rider has instituted four key budget actions for the 2009-10 academic year. It has reduced its tuition increase to 4.9 percent, a figure that is actually 4.7 percent when tuition and fees are combined, the lowest rate of increase over the last eight years. At the same time, financial aid for current and new students will increase next year by 11.5 percent, both measures designed to assist students and their families in this tough economic time.
Campus housing options will be dramatically improved through the soon-to-open two new residence halls (West Village Commons) and the plans to renovate Switlik Hall, as well as a number of housing grants for seniors on both campuses, Rozanski said. Rider’s Westminster Choir College campus in Princeton will also see strategic facilities improvements including enhanced practice rooms in the residences, expanded parking and new signage.
The last of the four key budget actions in Rider’s planning involves the strengthening of contingency allocations to cushion any potential shortfalls in enrollment, investment income or fundraising.
“I believe that so far we are benefiting from these actions,” Rozanski said.
The president then introduced Jamie O’Hara, vice president for Enrollment Management, who gave an overview of Rider’s progress toward fall 2009 enrollment goals and related student aid plans. “Expanded financial aid strategies will be the most important way in which we will secure the new and continuing enrollment for next year,” said O’Hara, who explained that the 11.5 percent increase in financial aid, representing $3.9 million, brings the total to almost $38 million. “A significant portion of this additional money will go towards expanded need-based awards and increases to merit awards for incoming students.” O’Hara added that the University provided an estimated $600,000 in special assistance this academic year to students who are experiencing personal challenges relating to the economy, and such assistance will be continued next year. He thanked the faculty and staff for referring such students to the financial aid staff and requested their continued outreach to students in need.
O’Hara’s most encouraging information was that student tuition deposits for the fall are running moderately ahead of same date figures from last year. “We can be cautiously optimistic about the increase in percentage to goal as well as the overall number of deposits,” he said. “However, I want to caution us all that this has been a very challenging year and we cannot predict what may occur over the next few weeks as we approach deposit deadlines.”
The encouraging enrollment projections are no coincidence, O’Hara said. “This spring has been extremely busy with enrollment events,” he said, thanking the faculty, staff and administrators who have supported the enrollment effort. He added that Saturday Admitted Student programs in March and April both produced record attendance, and that the Westminster faculty listened to 350 auditions this year, a 20 percent increase over 2008.
Julie Karns, vice president for Finance and Treasurer, spoke next. She acknowledged that both campuses have been careful and are managing well through a difficult period. “We don’t expect the pressures to let up in the short term, and we will need the continued support of the campus community– which we have had and very much appreciate– as we continue to manage our finances,” Karns said.
Reducing the tuition-and-fees rate of increase to a combined 4.7 percent and substantially increasing financial aid required reductions and reallocations in the FY 2010 budget, explained Karns. These adjustments, together with the increased contingency should help Rider achieve a balanced budget in FY2010, assuming that enrollment goals are achieved. “We will also continue to work hard on building non-enrollment revenues, which include gifts, investments returns, and our growing camps and conferences business, continued Karns. She also commented on Rider’s financial and endowment performance results.
In discussing future plans and strategies, she repeated the president’s caution that budgetary discipline would need to be continued throughout 2009-10 because the lower tuition increase and expanded financial aid were base budget adjustments that needed to continue to be compensated for by reallocation, increased revenues or expenditure constraints.
Next, Jonathan Meer, vice president for University Advancement, presented a brief snapshot of the University’s fundraising results through April 20. “As you might imagine, given the current economic climate, there are plenty of challenges to our fundraising aspirations,” Meer said. “However, it may be surprising to some that there is also some good news to report.
“Even in this tough economy, Rider has seen significant increases in both cash and gifts, and pledges in comparison to our fundraising performance over the past several years,” he continued. “To be fair, most of these increases come as the result of two major commitments: a seven-figure bequest that Mort (Rozanski) and Julie (Karns) cultivated that will support capital needs on the Lawrenceville campus, and a nearly $700,000 endowed scholarship for Westminster’s Organ program.”
However, Meer said that the performance of Rider’s Annual Fund has been negatively impacted by recent economic factors, but that “as much as one-half of the current shortfall relative to last year may be seen as ‘timing-related,’ due to our delayed launch, as well as the fact that many of our traditional lead donors to the Annual Fund fully intend to make their gifts prior to June 30 but simply have not done so at this time.”
Dr. Donald Steven, provost and vice president for Academic Affairs, then spoke about Rider’s continued efforts to advance its academic vitality. “I think it is very important to state that, despite the economic uncertainty, we continue to plan strategically and to implement our academic agenda,” Steven said. “And we’ve made real progress this year.”
Steven cited the endorsement of a series of university-wide student learning objectives and competencies by the University Academic Policy Committee in the fall. “These important learning outcomes will eventually become integrated into curricula across the University, helping to further build a firm foundation for all of our undergraduates,” he said.
Steven described successful recommendations by the joint AAUP/Provost’s Task Force on Faculty Mentoring, the Center for International Education’s efforts to make study abroad and a range of internationally-focused opportunities available to Rider students, and the continued development of the Discovery Program. This program, Steven explained, would provide undeclared freshmen with an intellectually vibrant, comprehensive and integrated academic and co-curricular first-year experience, as well as serve as a personal compass to guide them as they pursue their goals at Rider.
“One of the most pleasant aspects of my work, especially at this time of year, is receiving news about how well our students are doing and the many awards they are winning in regional, national and international competitions,” said Steven, who then enumerated a list of students who have captured prestigious national honors, as well as student-athletes who have earned acclaim. Steven also commended a series of Rider faculty members who have earned prestigious awards and research grants this academic year.*
“Clearly, despite these uncertain times, we are moving forward, onward and upward,” he said. “So, while I am, like all of us, concerned about the economy and its potential impact on the University, I am determined, as I know you are, to continue to move forward with our academic agenda. It’s just not in our nature as a University community and as faculty to do other than that.”
Rozanski concluded the University Update by thanking the Rider community for its support. “We have managed some significant challenges and will undoubtedly have more to meet,” he said. “But I’m confident that as a resilient community, with a disciplined and effective plan, we will also succeed in managing these challenges responsibly and effectively.”
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