<p>For those of you considering Marquette, I thought it might be interesting for you to read the president's comments on the current economy, the financial health of the university, future building projects and other initiatives. Full text follows;</p>
<p>In recent years we have chosen to schedule this event during our annual Mission Week, a thing very fitting indeed. Indeed, the theme for this years Mission Week finds its inspiration in a quotation from the founder of the Jesuits, St. Ignatius of Loyola: Love is found more in deeds than in words. In terms of Marquette, that truth is confirmed day in and day out through the high-quality work that you and your colleagues accomplish for this university, for our students and for advancing the knowledge and well-being of our human family. The successes we celebrate as a university community would not be possible without the contributions of every member of our university community. For that I most certainly thank you.</p>
<p>What is uppermost in our minds at present is, I strongly suspect, the severe economic downturn that we are experiencing and how it is impacting our university. So I thought it would be important to speak candidly and directly with you about that, and then to do my best at the end of this presentation to answer any questions you have. </p>
<p>What would I say generally? That at present we are as a university weathering the storm and doing decently well. While no one knows how long this recession will last, it already has had a worldwide impact, and most of the knowledgeable people we have consulted think things really will not turn around until 2010 at the earliest. Many also believe the economy will get worse before it gets better but no one really knows.</p>
<p>Since so much of our annual revenue derives from tuition, you will be pleased to learn that we have received as of today 17,536 applications for next falls freshman class, a remarkable increase of 17% over last years record breaking numbers. True enough, more students are sending out multiple applications as a bargain-hunting strategy to find out which university will offer the best financial aid. However, many universities, even some quite excellent institutions, have had a downturn in applications, and I know of none, certainly none of the Jesuit schools, that have had such a strong percentage increase as we have had. Last year, with a pool of 15,000 applications from which to choose, we decided that without sacrificing academic quality in the end it actually improved we could increase the size of our freshman class from about 1,800 to over 1,900, and we are aiming at a similar-sized freshman class this coming fall. To put it another way, given our present economic situation, the greater downside risk lies with too few students rather than too many. With more than 80% of our operating budget coming from tuition, room and board, and fees, you can well understand the negative impact any significant decline in enrollment would have on operations. We could of course be unpleasantly surprised come fall, especially if the economy really tanks in the next few months, but we think on this front we are in quite good shape.</p>
<p>In terms of our overall finances we have been very much helped by careful planning by our academic and administrative colleagues and capable oversight by our Board of Trustees. That is why, for example, in next years budget we felt comfortable in including a salary increase of approximately 3% to be allocated, as always, on a merit basis, and why, unlike a variety of other institutions, we have not felt the need to freeze salaries or hiring. To be sure, we will be very careful about hiring additional people, we will look closely at vacant positions to see if they really need to be filled and we will be aggressive in looking for further ways to save money all of these practices being standard operating procedure in any case. Ten years ago during a much more dire time for the university, we formed the Renewal Task Force, and that group over time has come up with over $10 million in permanent savings. Dr. Toby Peters, who now leads this group, has been re-energizing its efforts because we should always aim at operating better and more efficiently, and in this economic climate we owe this all the more both to our students and their families and to all of you. If you have suggestions regarding this, the RTF group would be most grateful for your input.</p>
<p>More generally I can report that Marquettes balance sheet is sound, our public credit rating (A2 from Moodys) is strong, our cash reserves sufficient and fully available, we will again this year operate in the black, and our endowment, while down certainly from where it was back in June (down, that is, about 25%), is diversified, well managed and performing ahead of benchmarks. And while I would very much like our endowment to be larger, if it were, in terms of budget we would be a lot more dependent on it than we are now. (Id still take larger, though and I am sure the day will come.)</p>
<p>Weve all seen reports about colleges and universities around the country reducing staff and eliminating programs to cut costs, and, thank God, that is not the case here at Marquette. But, as you well know, these are very difficult times, and while we will do everything we can going forward to keep the university in good financial shape, it would be plain irresponsible not to do contingency planning to deal with possible negative what if situations that may arise.</p>
<p>One thing that must have high priority for us as a university is to do whatever we responsibly can to assist students under financial duress from the present downturn to stay in school and complete their degrees. That is simply in keeping with our mission, with who we are as a university. </p>
<p>In light of that priority our Board of Trustees approved in December the lowest tuition increase in 30 years 3.5% an increase that will add less than $1,000 to an undergraduate students tuition bill. Even with that increase, our tuition continues to be lower than that of most of our peer private universities, lower than that charged by 18 of the nations 28 Jesuit colleges and universities. Still, a tuition bill even with the financial aid provided to nearly 90% of our undergraduates is no incidental expense. Our families make a tremendous sacrifice to send their students here and they do so because they not only seek a good academic and professional education for their children but also the mission-based educational experience that characterizes Marquette: accessible faculty who are interested in their students progress, a supportive campus environment, opportunities for undergraduates to get involved in hands-on research and clinical experiences, an education with a core of studies that embraces the liberal arts, especially philosophy and theology; an overall educational approach that seeks to form men and women for others. This is Mission Week, and its theme centers on helping us to draw more deeply on our own spirituality and faith to influence all the more our actions for good and to drive the ethic of human excellence and service that is so characteristic of this university. And, frankly, in times like these, it is, I truly believe, even more important that we do all we can to live out in our work the values that characterize this university and that draw so many families seriously to consider entrusting their son or daughter to us for their college education. </p>
<p>People do not easily give up on the dream they have for their children to go to college. Even in tough times such as we are now experiencing, the intensity of their hopes for their children doesnt diminish it intensifies. They dont look at college tuition costs and say, Oh, lets push that off for a year or two. We know the decisions families make now are based on ensuring that their children and grandchildren have better opportunities and more fulfilling lives. We know Marquette offers many special advantages to the parents and students who seek a Catholic, Jesuit university education. And our graduates, as they themselves report, leave us not just well prepared as professionals but also rightfully believing that they have a larger purpose in life and the ability to make a genuine positive difference in our human family. Thats an incredible graduation present! </p>
<p>Under the assumption that as our families wrestle these days with their household budgets, more of them will need help, we have moved an additional $4 million into the financial aid pipeline. While we do not have the resources to solve every problem, we will in these hard times dedicate resources as best we can to keep pace with such needs as they arise, especially for our current students. In that regard, please keep an eye out for any of your students who may be running into financial problems. A call or e-mail to our Office of Student Financial Aid will allow their staff quietly to check to see if any significant financial problems have arisen. Last year we announced scholarship aid as our top fundraising priority and this year we are particularly focusing upon current-use scholarships that can go directly to students. Several donors have chosen to provide the university with very generous emergency scholarship support, and this is helping us to retain students suddenly coming under financial distress. One donation for this purpose that I am especially aware of, a gift of $250,000 from one of our long-time donors, has provided extra financial aid to no less than 51 of our students to help them to stay in school.</p>
<p>To no ones surprise, our fundraising results have slowed considerably. Most people these days are reluctant to make large multi-year gift pledges, i.e., the gifts that typically fuel our campaigns, because they are uncertain and nervous about the future and do not want to over-commit their financial resources. Still, there is lots of enthusiasm and good will among our donors and friends, many of them are quite willingly making smaller gifts in support of our ongoing operations, and we continue to stay connected with them and wait for better times. </p>
<p>You might wonder about our building projects. Two new buildings are currently underway: the new Law School, Eckstein Hall, which is being built on Tory Hill and Zilber Hall, our new student services and administration building, at 12th and Wisconsin. About $66 million of the $85 million price tag for the Law School has been raised, another $4 million is within sight, and we anticipate that all of the dollars needed for this project will ultimately come from external sources. The much more modest cost of Zilber Hall is being covered primarily by low interest, thirty-year bonds. For both of these projects bridge funding has been secured through tax-exempt bonds. In addition, the conversion of the large apartment building on the northeast corner of 17th and Wisconsin into a new residence hall for sophomores is going forward, with its opening date scheduled for next August. As for the proposed new College of Engineering facility, while a significant percentage of its total cost has already been pledged, we will proceed very cautiously and not start construction until we know very clearly where all the funds are coming from. </p>
<p>So that gives you a sense of where Marquette University stands amid all the vicissitudes of this economic recession swirling around us. My own sense of things: as a university we have struggled with worse difficulties in the past, and we can and we will deal with this challenge as well.</p>
<p>Even recognizing the unsettled future, the present academic year here at Marquette is shaping up as a good one. Let me highlight just a few reasons:</p>
<p>Marquette rose in the U.S. News rankings of the nations top 100 universities to No. 77 (up from No. 82), and Kiplingers in its annual ranking of Best Values in Private Colleges placed Marquette in 44th place among the Top 50 private universities.</p>
<p>There is good news in the area of research, grants and technology transfer. A handheld biodiesel analyzer developed by Paradigm Sensors, LLC, with technology acquired from Marquette through the work of Prof. Marty Seitz in Engineering, was recently honored by R&D Magazine as one of the most technologically significant products of the year. Then in mid-January a lengthy effort on the part of the university to license for commercial development College of Health Sciences Professor David Bakers research on neurotransmitters in the brain was successfully concluded. Dr. Bakers research has shown promise for the treatment of schizophrenia and other central nervous system conditions, and the license will allow the company established for this purpose, Promentis, to explore this further. </p>
<p>The Wisconsin Reading Acquisition Program, which is housed in the College of Health Sciences Dept. of Speech Pathology, received a $4 million grant from the U.S. Department of Education, the largest-three year grant in university history and largest grant ever for the College. </p>
<p>Early in March the university will welcome a two-person visiting team for the focused visit on assessment that was mandated by our general accreditor, the North Central Association, in the aftermath of our ten-year reaccreditation visit in 2004. Having read through the self-study prepared by Marquette for this visit, may I say that we are now in a VERY different place as a university in terms of learning assessment than we were in 2004. We have a clear game plan, it is being carried out well, and more and more areas are discovering from the results what they should do to improve further student learning in their specific disciple or activity. True enough, assessment at Marquette is a work in progress that we will continue to modify and improve, but I am very encouraged by what has been accomplished. So I most certainly thank the faculty for their efforts, their cooperation and their patience with all of this, and very especially I thank our Vice Provost, Dr. Peggy Bloom, for without her considerable expertise and her persistence, we would have been nowhere as far along as we are now. Peggy, thank you indeed! </p>
<p>In that vein I would note that Marquette is one of 20 four-year institutions currently participating in a comprehensive, campus-wide self-assessment of the first-year college experience. We work hard to help our students make a successful transition to college, but now, to take things a step further, we are with the help of the Foundations of Excellence project of the Policy Center on the First Year of College assessing our programming to determine where and how it can be further improved. </p>
<p>Progress is also being made toward improving aspects of our graduate programs, especially our doctoral programs. For example, funding has been added to next years budget to provide health insurance for those doctoral and masters students who are serving as teaching and research assistants, an improvement that for some time has been urged by our Graduate Student Association. In addition, the university has begun working with seven of our doctoral programs to assist the efforts of their respective faculties to improve further their overall quality. </p>
<p>Excellent work on many fronts continues to be accomplished by our Office of Mission and Identity, but I want to single out for special praise the Faber Center for Ignatian Spirituality, which is directed by Mr. Michael Hogan and which offers a variety of programs for faculty and staff to help them to grow spiritually, especially through the riches of the spiritual tradition of St. Ignatius of Loyola. I am impressed by the creativity and variety of the programs the Center offers there really is something for everyone and the team running the Faber Center is indeed impressive.</p>
<p>Mens Basketball, guided by Coach Buzz Williams, is currently ranked 8th in the nation. Spectacular! And both our Mens and our Womens Basketball teams beat Notre Dame! For the Womens team it was the first time in the programs very proud history that they beat a top 10 ranked team. </p>
<p>So despite the challenges we face, there is much positive momentum carrying us forward. With regard to Marquette there is every reason for us to remain fundamentally optimistic and hopeful for the future and steadfastly loyal to the values that imbue a Marquette education. Again, my warm thanks to you for all the good things you do for Marquette University, and may God abundantly bless all of us who work and study at this institution.</p>