Heckler to Retire: New President Search

[vu84v2]

Interesting stuff, though difficult to decipher.  What I did glean was that in the most recent numbers, showing the top 13 highest paid employees, only one was from the law school at 258,000.  In the previous year 4 of the top 13 were from the law school being paid 1.2 million. The law school was a drain, no doubt.

Matt's total comp was 396,000 which probably makes him the lowest paid coach in the Valley but number 8 in Valpo's top 13.

This is great information and, again, it is fantastic that valpo95 posted that link.

I should caution that the list of the 13 employees and their pay is likely not the 13 highest paid employees. The people whose salaries are reported in Valpo's filing are all in executive positions (except the basketball coach), so who gets reported is probably driven by some tax law associated with position. In some fields, there will be tenured faculty who make more than some people on this list. This is because their field is highly specialized, has high demand, and a limited number of people in the country that are qualified to teach it. Engineering is likely one such field, but areas like tax accounting also demand very high salaries. If you do not believe this, look up the top salaries for people employed at public universities where the state requires all salaries of university employees to be publicly disclosed.

The other important point to consider from the salary data is that Valpo, in general, gets good, qualified people at a discount. In my view, this is because Valpo's mission resonates well with these people and they are willing to take less salary to be at a place that is consistent with their own mission and priorities. Part of the discount is that Valpo has much lower research requirements than an R1, but it is still getting a discount on faculty versus more balanced schools with a lower research commitment.

[vu72]

The attached is the official search document for the new President.  It is really well done and shows Valpo for all the wonderful parts as well as the challenges at present.  Worth the time to look at it.

https://www.agbsearch.com/sites/default/files/position-profiles/valpo_presidential_prospectus.pdf

[crusadermoe]

Yes, it is a really compelling document and it's quite nice to view the community as a major "asset" after all the downtown changes.  It hits all the shining points of Valpo as it spans the liberal arts and professional programs, straddles faith and diversity etc. and intrigues you in any number of ways.  Fund-raising is cited as a strength even though despite the hype Heckler raised far less than Harre's last 10 years.

But there is a remarkably candid paragraph on page 28 that should grab the applicant's attention. The heading is "Building A Sustainable Financial Model."  "In recent years, Valparaiso University's financial operations have been pressured by the closing of the law school, the downward trend in undergraduate and graduate enrollment, and an increase in unfunded financial aid.   ....The president will be the leader in developing a sustainable financial plan for the years ahead.   (They forgot servicing debt on huge new buildings.)   

That's pretty concise and pointed.  If they wrote a Want Ad, they could say: Car Dealership seeks new manager. In the last "several" years the dealership has sold fewer cars, sold them at a growing discount, and yet borrowed to build huge glowing showrooms based on a projected doubling of car sales. The new manager will be given a chance to service the debt and increase sales.

[vu72]

Yes, it is a really compelling document and it's quite nice to view the community as a major "asset" after all the downtown changes.  It hits all the shining points of Valpo as it spans the liberal arts and professional programs, straddles faith and diversity etc. and intrigues you in any number of ways.  Fund-raising is cited as a strength even though despite the hype Heckler raised far less than Harre's last 10 years.

But there is a remarkably candid paragraph on page 28 that should grab the applicant's attention. The heading is "Building A Sustainable Financial Model."  "In recent years, Valparaiso University's financial operations have been pressured by the closing of the law school, the downward trend in undergraduate and graduate enrollment, and an increase in unfunded financial aid.   ....The president will be the leader in developing a sustainable financial plan for the years ahead.   (They forgot servicing debt on huge new buildings.)   

That's pretty concise and pointed.  If they wrote a Want Ad, they could say: Car Dealership seeks new manager. In the last "several" years the dealership has sold fewer cars, sold them at a growing discount, and yet borrowed to build huge glowing showrooms based on a projected doubling of car sales. The new manager will be given a chance to service the debt and increase sales.

A bit of a cheap shot don't you think?  What has been built expecting a significant growth in enrollment?  The Union?  Funded primarily by donations if not entirely.  Harre was not going to build without funds to build and endow.  something else?  I think not.

[bbtds]

Yes, it is a really compelling document and it's quite nice to view the community as a major "asset" after all the downtown changes.  It hits all the shining points of Valpo as it spans the liberal arts and professional programs, straddles faith and diversity etc. and intrigues you in any number of ways.  Fund-raising is cited as a strength even though despite the hype Heckler raised far less than Harre's last 10 years.

But there is a remarkably candid paragraph on page 28 that should grab the applicant's attention. The heading is "Building A Sustainable Financial Model."  "In recent years, Valparaiso University's financial operations have been pressured by the closing of the law school, the downward trend in undergraduate and graduate enrollment, and an increase in unfunded financial aid.   ....The president will be the leader in developing a sustainable financial plan for the years ahead.   (They forgot servicing debt on huge new buildings.)   

That's pretty concise and pointed.  If they wrote a Want Ad, they could say: Car Dealership seeks new manager. In the last "several" years the dealership has sold fewer cars, sold them at a growing discount, and yet borrowed to build huge glowing showrooms based on a projected doubling of car sales. The new manager will be given a chance to service the debt and increase sales.

A bit of a cheap shot don't you think?  What has been built expecting a significant growth in enrollment?  The Union?  Funded primarily by donations if not entirely.  Harre was not going to build without funds to build and endow.  something else?  I think not.

Let's call them our personal views and opinions and not cheap shots but I do agree. Name a building that was never used because the administration overbuilt on campus. My opinion is the admins wanted to create a need to build by increasing the enrollment, mostly through foreign enrollment, which external pressures diminished (Trump was legally elected and scared off foreign students--no opinion given whether this was good or not but it did have a negative effect on our beloved university).

[crusader05]

There has been this fixation on debt for building but everyone I have talked to from the university has stated the debt is not the issue. That the dorms mostly have reimbursed themselves and that the buildings were necessary to maintain with our peer institutions while the interest rates being so low that it was best to build now. The issue constantly being sited is the issue of declining students in Valpo's main area leading to financial aid often being the reason people pick a school which means more scholarships (which is why the endowment has such a priority.

Also, Harre did raise a lot of money and he built several buildings with it but in that time he also let a majority of them crumble to the point where they were so far behind out peers. People like to talk about how the ARC looked but let me tell you, many academic buildings looked pretty pathetic and were falling apart even more.

[crusadermoe]

The dormitories sound like they are paying off.  And indeed those would be a huge hindrance to enrollment.  But the enrollment impact of the academic buildings vs. debt service to build them seems truly debatable.  Several were built after the foreign student downturn became clear.

Yes, you could say that the debt was timely if you are going to use it.  And yes, I may be a grizzled oldster with memories of piggy banks and buying a car in cash. And maybe Harre did hold us back a bit by requiring cash instead of mortgages to build.

But ultimately who pays the debt?   Elves?....or students? 

[crusader05]

I just think the point is that long standing debt at low interest rates is not the issue when the current concern is overall student numbers at a cost that allows them to pay for basic operating. Also one of the buildings that has been financed is in the sciences which, in conjunction with nursing and engineering, serve the two colleges that have a growing admission population and the Arts and Sciences building replaced several ones that were falling apart and eyesores.

This idea that the presence of debt means out of control spending is not always true. If anything I'd say the amount of scholarships we give away is probably a bigger driver of financial struggles but unless they figure out a way to bring in more online students like in the OT PhD program or increase graduate students it's gonna be rough to turn that ship around too much in the short term.

[vu72]

I just think the point is that long standing debt at low interest rates is not the issue when the current concern is overall student numbers at a cost that allows them to pay for basic operating. Also one of the buildings that has been financed is in the sciences which, in conjunction with nursing and engineering, serve the two colleges that have a growing admission population and the Arts and Sciences building replaced several ones that were falling apart and eyesores.

This idea that the presence of debt means out of control spending is not always true. If anything I'd say the amount of scholarships we give away is probably a bigger driver of financial struggles but unless they figure out a way to bring in more online students like in the OT PhD program or increase graduate students it's gonna be rough to turn that ship around too much in the short term.

If viewed from a business standpoint, debt usually means you felt borrowing to expand or replace needed equipment made more sense then selling equity at too low a price.  In Valpo's setting it is not avoiding selling equity at too low of a price but rather a means to replace needed equipment (facilities) with the only means possible, given the existing cash issues.  So we add a Science Building to expand and, to some extent, replace Neils, which apparently had snow blowing through it from time to time.  The new Arts and Sciences building replaced the old Deaconess building which was replete with window air conditioners.  Beacon Hall brought the dorm situation partially up to date.

Given the current competitive situation trying to attract GOOD students, I just don't see any action that was not well thought out and very necessary.

[VULB#62]

One contributing factor shared with tons of other universities:

https://www.chicagotribune.com/opinion/commentary/ct-perspec-rampell-universities-export-foreign-students-decline-1216-20181214-story.html

[covufan]

One contributing factor shared with tons of other universities:

https://www.chicagotribune.com/opinion/commentary/ct-perspec-rampell-universities-export-foreign-students-decline-1216-20181214-story.html

I found this interesting:

"(Foreign students)They disproportionately study fields that U.S. employers demand, and that U.S. students avoid. Foreign students now represent a majority of computer science and engineering graduate programs at U.S. universities, for instance."

How/why is the US system letting our students study fields that US employers are not requiring?




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[valpotx]

That vast majority of Software Engineers (Java-based) I hire at my company are from countries in Asia.  It is rare to find a Java Developer that grew up in the US.  Yet, we have folks in the US complaining that, 'they are taking our jobs,' when they could have tried to go this same educational route.

[bbtds]

That vast majority of Software Engineers (Java-based) I hire at my company are from countries in Asia.  It is rare to find a Java Developer that grew up in the US.  Yet, we have folks in the US complaining that, 'they are taking our jobs,' when they could have tried to go this same educational route.

Does anyone else see a collision course developing here?

[mj]

I think the news today about men's soccer and tennis makes clear that VU is in a more precarious financial position that people want to admit.

Cutting sports programs and cutting faculty isn't the sign of a healthy institution. This is all on Heckler.

[covufan]

Not sure where to put this, but after the soccer and tennis news I'll put it here:

https://www.espn.com/blog/collegebasketballnation/post/_/id/119205/how-the-basketball-program-helped-gonzaga-university-flourish

We need to figure out how to get the Valpo name out there in a positive light to the many youngsters that are looking for a college. Obviously, the free publicity of a sweet sixteen run or Flutie miracle are tough to beat, but we need something. And soon.


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[crusadermoe]

Spokane probably  does not have more population than combined Porter and Lake Counties,..and certainly not more when you add drivable night time distances like Will County, Cook, and DuPage.     

And Spokane is FAR MORE isolated from its alumni in terms of geography!!  Enough with the "small town" excuses.

This is the year to test our attendance.  Jevon Freeman-Liberty appears to have genuine NBA potential and we will run with everybody.   If we don't get crowds that warrant a thought of ARC expansion then kiss that idea good-bye.  And the town, Lake and Porter will have deserved that.

Leaders at VU need to stop talking intellectual politically correct jibberish and align a logical business plan.   

[vu72]

Interesting, probably final student interview with President Heckler.  He provides info on everything from parking, to Valpo's financial issues, to canceling soccer and tennis. 

https://soundcloud.com/wvursport/valparaiso-university-president-mark-heckler-interview?fbclid=IwAR2-qnLKyZx1NWTpj1tE121XVwNbgN0SQtBM8n0REnXonmsyxJZwMT0lsgY

[crusader05]

https://www.indianapolismonthly.com/news-and-opinion/opinion-and-columns/depauws-big-mess-on-campus


This article has been making the rounds and it highlights some of the same issues Valpo has been dealing with and they are also looking for a new president.

[vu72]

https://www.indianapolismonthly.com/news-and-opinion/opinion-and-columns/depauws-big-mess-on-campus


This article has been making the rounds and it highlights some of the same issues Valpo has been dealing with and they are also looking for a new president.

Wow!  A powerful article.  DePauw must have some really big hitter alums, having just concluded a $380 million campaign with a much smaller alumni base.  Their "sticker price", at 64,000, is substantially larger than Valpo's 54,000 but so is their endowment.  What Valpo has going for it that DePauw doesn't is their professional schools.  It will be interesting to see how many liberal arts schools, with much smaller endowments, will continue to survive.

[wh]

https://www.indianapolismonthly.com/news-and-opinion/opinion-and-columns/depauws-big-mess-on-campus
s

This article has been making the rounds and it highlights some of the same issues Valpo has been dealing with and they are also looking for a new president.

So the author, who purports to care so deeply about her university, writes a dirty laundry hit piece for the world to see, including current students and their families, prospective students and their families, alumni, donors, competitor universities, and the public at-large. The ink on the article is barely dry, and it's already buzzing on social media.  It reminds me of the NY Times article about the Valpo Law School, where law school staff offered up juicy insider quotes, making themselves look like a bunch of hapless buffoons. If that didn't bury the law school, it certainly put the final nail in the coffin.  As to DePauw, as if they don't have enough problems, now they will have to go into damage control to deal with the fallout needlessly and callously caused by one of their own - a DePauw English Professor, no less. 

Self-interest over the greater good, and stupidity over wisdom are always in unlimited supply.

[vu84v2]

https://www.indianapolismonthly.com/news-and-opinion/opinion-and-columns/depauws-big-mess-on-campus
s

This article has been making the rounds and it highlights some of the same issues Valpo has been dealing with and they are also looking for a new president.

So the author, who purports to care so deeply about her university, writes a dirty laundry hit piece for the world to see, including current students and their families, prospective students and their families, alumni, donors, competitor universities, and the public at-large. The ink on the article is barely dry, and it's already buzzing on social media.  It reminds me of the NY Times article about the Valpo Law School, where law school staff offered up juicy insider quotes, making themselves look like a bunch of hapless buffoons. If that didn't bury the law school, it certainly put the final nail in the coffin.  As to DePauw, as if they don't have enough problems, now they will have to go into damage control to deal with the fallout needlessly and callously caused by one of their own - a DePauw English Professor, no less. 

Self-interest over the greater good, and stupidity over wisdom are always in unlimited supply.

Some professors feel that they can take public shots at their university/employer because they are protected under academic freedom. I guess that they can, but that is not and never was the intention of  academic freedom. Your conclusion of this being for self-interest seems spot on.

[valpotx]

I like DePauw.  I had a few cousins graduate from the school, and it was my second choice, if I didn't care about playing D-1 ball, and just wanted to worry about academics/playing at a D-3 school.  They have a large enough endowment that they will put through this, but I hate to see this type of publicity for the school.

[valpo95]

Just came across this news story about upcoming budget cuts at Bethel University (Minnesota).

https://kstp.com/news/bethel-university-the-latest-minnesota-college-to-face-budget-issues-amid-declining-enrollment/5576357/

For those of you who don't know, Bethel is a private, Christian university, similar to a Wheaton (IL) or Taylor (IN).  Bethel's full-time undergraduate enrollment is about the same size as Valpo's, yet the endowment is far smaller ($53M). They do have larger part-time and graduate enrollment. The article points out the declining enrollment (down about 10% over 5 years), and the projected $11M deficit over the next three years.

The declining enrollment and declining number of high school graduates is a challenge faced by many schools like VU.

[vu72]

Just came across this news story about upcoming budget cuts at Bethel University (Minnesota).

https://kstp.com/news/bethel-university-the-latest-minnesota-college-to-face-budget-issues-amid-declining-enrollment/5576357/

For those of you who don't know, Bethel is a private, Christian university, similar to a Wheaton (IL) or Taylor (IN).  Bethel's full-time undergraduate enrollment is about the same size as Valpo's, yet the endowment is far smaller ($53M). They do have larger part-time and graduate enrollment. The article points out the declining enrollment (down about 10% over 5 years), and the projected $11M deficit over the next three years.

The declining enrollment and declining number of high school graduates is a challenge faced by many schools like VU.

Based on the numbers, Bethel is on their way to joining St. Joes.  I did a little checking and found that 75% of undergrads get an average of $24,362 in scholarships.  That translates to 2,143 students getting a total of  slightly over $52 million in aid.  You can't sustain that with a $53 million dollar endowment.  As with many schools, Bethel does not offer a four year engineering degree but rather a "pre-engineering" program which requires a transfer to a different school to complete the degree.

[FieldGoodie05]

Just came across this news story about upcoming budget cuts at Bethel University (Minnesota).

https://kstp.com/news/bethel-university-the-latest-minnesota-college-to-face-budget-issues-amid-declining-enrollment/5576357/

For those of you who don't know, Bethel is a private, Christian university, similar to a Wheaton (IL) or Taylor (IN).  Bethel's full-time undergraduate enrollment is about the same size as Valpo's, yet the endowment is far smaller ($53M). They do have larger part-time and graduate enrollment. The article points out the declining enrollment (down about 10% over 5 years), and the projected $11M deficit over the next three years.

The declining enrollment and declining number of high school graduates is a challenge faced by many schools like VU.

Based on the numbers, Bethel is on their way to joining St. Joes.  I did a little checking and found that 75% of undergrads get an average of $24,362 in scholarships.  That translates to 2,143 students getting a total of  slightly over $52 million in aid.  You can't sustain that with a $53 million dollar endowment.  As with many schools, Bethel does not offer a four year engineering degree but rather a "pre-engineering" program which requires a transfer to a different school to complete the degree.

You make a solid point.  But that doesn't tell the whole story, % discounted just means % discounted.  It's no different than the TJ Max price tag that says $100 and then reads $19.99.  That only tells the story of perceived value.

But you cannot be far off when it comes to sustaining a heavy discount with limited endowment.  Sad to see these things take place but in the long run this is a necessary contraction that makes schools that persevere that much stronger.  I will be worried about Valpo in due time, this seems like Round 1 of the national contraction and more are certainly coming.