Valpo Strategic Plan

[valpopal]

My confidence in the possibility of a compromise that would save the artworks from sale and allow an alternative to prevail has been increased a bit. Yesterday, a former VU law professor and major donor to VU brought the university to court requesting a temporary restraining order on any sale. The situation is also being examined by the state Attorney General who predicted the art sale could not take place before the fall at the earliest. The representative for the Attorney General also said the sale would likely need court approval before moving forward. During the proceedings, VU's lawyer, apparently contradicting Padilla's previous statements about a need to move quickly, assured the court that the university had revised its emphasis on urgency of the sale, saying "There is no immediacy to this at all." I have also been told the Board of Directors will likely revisit this issue in an upcoming meeting, perhaps to seek an alternative move forward.
[tweet]1650900485589676032[/tweet]

[crusadermoe]

I think I have noted earlier that Padilla's arrival and statements have all predicted a "Go Big or Go Home" mentality. That is probably the best strategy for Valpo now.  The Roger Powell hire went big.  The purchase of Strongbows went big (at least in Valpo's world.)  The Art Sale went big both in size and in risk.  I have also pointed out that there is really no downside for Padilla at this point in his career. on a big bet.  If he wins on these big bets he puts a huge win on his resume. At that point he can stay at Valpo and enjoy a career finale. 

If the big bets fail, he can move on to another job having attempted a turnaround against extremely long odds.  His background as an attorney and passionate, decisive guy suits him well for a presidency somewhere else in this turbulent time in higher education.  Or he can return to a corporate attorney role. I respect his commitment to Valpo's mission and his decisiveness.  But you are not looking at a person with Valpo at the center of his life story, viewing VU through an 8-15 year lens who will go down with the ship.  Fall 2025 or bust.

[valpo95]

The more I learn, the more this is laid at the feet of President Heckler. It is appropriate that his background is in theatre, as his leadership (or lack thereof) during 2008-2020 set the stage for this circumstance.

President Heckler (who led "the most comprehensive and ambitious strategic plan in Valpo's history") set out a plan to grow the university to 6,000 students in the face of demographic headwinds.  He was in charge when the Law School imploded, where the tuition likely covered up some structural deficits. He saw the fraction of Lutheran undergrads go from 31% in 2009 to 18% in 2020 (and LCMS undergrads go from 16% (465 students) to 6.7% (184 students) in the same period); this is the fraction of students who indicated a religious affiliation. In addition, during Heckler's tenure, the sticker price tuition went from $26,070 in 2008 to $41,940 in 2020 (I do not know the net price, net of discounts). He did oversee several new buildings, and a seemingly successful fundraising effort even a portion is in future pledges/estate gifts. However, that seems to be offset by stagnating salaries that seem to have been more acute during his time as president.

President Padilla has been given a difficult task, though other than a foreseeable uproar with respect to the proposed art sale he seems to be doing a good job.

[vu72]

Absent digging into the art museum basement in search of a forgotten Picasso or Monet, there are only two ways to address this: Revenue and fundraising.

Or in other words, increase the number of students in attendance.

[vu84v2]

My confidence in the possibility of a compromise that would save the artworks from sale and allow an alternative to prevail has been increased a bit. Yesterday, a former VU law professor and major donor to VU brought the university to court requesting a temporary restraining order on any sale. The situation is also being examined by the state Attorney General who predicted the art sale could not take place before the fall at the earliest. The representative for the Attorney General also said the sale would likely need court approval before moving forward. During the proceedings, VU's lawyer, apparently contradicting Padilla's previous statements about a need to move quickly, assured the court that the university had revised its emphasis on urgency of the sale, saying "There is no immediacy to this at all." I have also been told the Board of Directors will likely revisit this issue in an upcoming meeting, perhaps to seek an alternative move forward.
[tweet]1650900485589676032[/tweet]

How is this a compromise? It looks like steps are being taken for people opposed to the art sale to win and people who feel it is necessary to sell the art as it is not central to Valpo's mission to lose. I am sure, of course, that the people opposed to the art sale might be able to find a way to get 1% of the money that the art sale would raise...so they'll rationalize that they compromised.

I should feel good about the art sale being potentially blocked. The organization that we donate the most to is Valpo. If an organization does not use non-core assets to fund its advancement and revitalization, it seems clear that it does not need donations (or, alternatively, that donations indirectly fund the non-core assets). Other universities and organizations that we are affiliated with would be glad to have our donations.

[wh]

Tenured and tenure-track faculty members at Valparaiso University are legally considered managerial employees, correct?

[vu72]

The Attorney General sticking his nose into Valpo's affairs? More Big Government overreach.

[crusadermoe]

Yes, that seems like a poor use of his time.  He must be a bit bored.

[valpofb16]

Left off about page 28, did we sell the art?

In all seriousness, has anyone suggested recreating the art as a reprint? Is there that much learning , emphasis on learning, value in having the real thing vs a replica?

Also can anyone name the three pieces of artwork off the top of their head?

Bet you can name the dorms though!

[historyman]

Also can anyone name the three pieces of artwork off the top of their head?

Bet you can name the dorms though!

Dorm A
Dorm B
Dorm C

The dorms are named.


Painting A off the top of my head
Painting B off the top of my head
Painting C off the top of my head

Now the art work is named.

[crusadermoe]

I won't back and look but the big one was "Red Rust...etc..."

[usc4valpo]

Looking at the Red Rust Hills painting, and I know folks will be upset so I apologize early, for some reason it reminds me of a South Park episode regarding accomplishing a world record.

[valpopal]

My confidence in the possibility of a compromise that would save the artworks from sale and allow an alternative to prevail has been increased a bit. Yesterday, a former VU law professor and major donor to VU brought the university to court requesting a temporary restraining order on any sale. The situation is also being examined by the state Attorney General who predicted the art sale could not take place before the fall at the earliest. The representative for the Attorney General also said the sale would likely need court approval before moving forward. During the proceedings, VU's lawyer, apparently contradicting Padilla's previous statements about a need to move quickly, assured the court that the university had revised its emphasis on urgency of the sale, saying "There is no immediacy to this at all." I have also been told the Board of Directors will likely revisit this issue in an upcoming meeting, perhaps to seek an alternative move forward.
[tweet]1650900485589676032[/tweet]

The Chicago Tribune coverage of the court case repeats the above points but also adds interesting tidbits. The university attorney, Darron Farha, acknowledges the state Attorney General will need to okay the sale as not violating trust terms. Also, Darron reveals that the university has refrained from entering into a contract agreement with Sotheby's and confirms any sale could not take place before fall. "The university has been in contact with Sotheby's about selling the paintings but doesn't have a contract with the auction house because university officials don't have an answer yet from Rokita's office, and even then, a sale would be one to two months out." Darron's comment further undercuts previous assertions by Padilla that the art sale was an urgent matter that needed to be completed by end of spring, and since the university has not contracted with Sotheby's, reconsideration of the art sale plan remains a possibility.
[tweet]1650977953214332936[/tweet]

[vu84v2]

I do not agree with the conclusion on urgency. It could certainly be considered urgent while also needing to delay a contract with Sotheby's due to pre-requisites to resolve legal issues/approval. But it does seem clear that the people opposed to the art sale want to focus on any language, regardless of context, that strengthens their position or damages the reputation or position of those who favor the art sale.

[David81]

The more I learn, the more this is laid at the feet of President Heckler. It is appropriate that his background is in theatre, as his leadership (or lack thereof) during 2008-2020 set the stage for this circumstance.

President Heckler (who led "the most comprehensive and ambitious strategic plan in Valpo's history") set out a plan to grow the university to 6,000 students in the face of demographic headwinds.  He was in charge when the Law School imploded, where the tuition likely covered up some structural deficits. He saw the fraction of Lutheran undergrads go from 31% in 2009 to 18% in 2020 (and LCMS undergrads go from 16% (465 students) to 6.7% (184 students) in the same period); this is the fraction of students who indicated a religious affiliation. In addition, during Heckler's tenure, the sticker price tuition went from $26,070 in 2008 to $41,940 in 2020 (I do not know the net price, net of discounts). He did oversee several new buildings, and a seemingly successful fundraising effort even a portion is in future pledges/estate gifts. However, that seems to be offset by stagnating salaries that seem to have been more acute during his time as president.

President Padilla has been given a difficult task, though other than a foreseeable uproar with respect to the proposed art sale he seems to be doing a good job.

It appears that you're looking for a scapegoat, which often happens when things become very challenging. But the figures and facts you cite need to be considered in the context of comparative data and specific circumstances covered by the period of Heckler's administration:

First, VU's decline in the % of declared Lutheran students paralleled one of the biggest historical declines in the % of declared religiously-affiliated students generally, as this Scientific American piece explains:
https://blogs.scientificamerican.com/observations/college-freshmen-are-less-religious-than-ever/.

Second, while the demise of the Law School did indeed occur under his watch, consider some realities: (1) Law schools traditionally are given considerable leeway in plotting their paths, with much authority given to law school deans and faculty, and VU Law was no exception; (2) Heckler's tenure overlapped with the worst bloodletting and sharpest application drop in law school applications nationally ever experienced in legal education, thanks to ripple effects of the 2008 recession; (3) Saving the Law School likely would have required heavily taxing other, already cash-poor units of the University to pay for super-generous law school scholarships to attract stronger applicants and to make up for a significantly smaller law enrollment.

Third, VU's overall sticker-price tuition and annual tuition increases, while certainly not a good thing given the impact on students and eventual graduates, are remarkably similar to the overall averages for the U.S. News category of private National Universities (VU's grouping), as this chart shows:
https://www.usnews.com/education/best-colleges/paying-for-college/articles/see-20-years-of-tuition-growth-at-national-universities

Fourth, VU's faculty salary problem has been a baked-in problem stretching back to waaaaaaaaay before Heckler. It was very much an issue when I attended VU c. 1980, when a comparative salary study showed VU lagging well behind most of its Lutheran-affiliated peers, not exactly a financially robust group to start with.

On the other hand, the goal of enrolling 6,000 students was clearly unrealistic. Also, in light of the decline of religiously affiliated students, the school probably should've done a better job of recruiting from that narrower pool. And his commitment to intercollegiate sports was, at best, obligatory. But every university president will have a mix of successes and miscues.

So...piling onto Heckler seems to be a convenient, but ultimately unfair gesture. I suggest that for some of his critics, and without presuming that valpo95 is among them, it's a pretext for disagreeing with his political orientation and/or for not embracing sports with sufficient gusto. As for me, I liked him and thought he helped VU become a more interesting and cosmopolitan institution. Furthermore, he is the third successive VU president, following predecessors Schnabel and Harre, to spearhead a successful major fundraising campaign as part of his presidency. I think he did a good job overall, especially given how his VU tenure was significantly bookended by a global recession and a global pandemic.

[valpopal]

I do not agree with the conclusion on urgency. It could certainly be considered urgent while also needing to delay a contract with Sotheby's due to pre-requisites to resolve legal issues/approval.

I would agree with you except that Padilla made timing a point when expressing his reasoning for the art sale plan. He asserted selling the paintings was the only way he could get funds by the end of spring to begin renovation of the dorms over the summer. He said there was a tight schedule and that was why he eliminated some other alternatives. However, that urgency rationalization for the art sale by end of spring option no longer applies.

[crusadermoe]

The points are very fair about Heckler in having no control of the law school trends and Lutheran demographics. 

But Heckler's fund-raising constantly gets touted for the "biggest campaign in history." If you find the numbers somewhere you will see that Harre ran two campaigns in the second 10 years of his 20 totaling more money than Heckler raised in his 13 years. Just tired of that myth about Heckler.  In 10 years Harre did two and combined for over $325M in a lower stock market.

[wh]

The points are very fair about Heckler in having no control of the law school trends and Lutheran demographics. 

But Heckler's fund-raising constantly gets touted for the "biggest campaign in history." If you find the numbers somewhere you will see that Harre ran two campaigns in the second 10 years of his 20 totaling more money than Heckler raised in his 13 years. Just tired of that myth about Heckler.  In 10 years Harre did two and combined for over $325M in a lower stock market.

The points are very fair about Heckler in having no control of the law school trends and Lutheran demographics. 

But Heckler's fund-raising constantly gets touted for the "biggest campaign in history." If you find the numbers somewhere you will see that Harre ran two campaigns in the second 10 years of his 20 totaling more money than Heckler raised in his 13 years. Just tired of that myth about Heckler.  In 10 years Harre did two and combined for over $325M in a lower stock market.

I hold President Harre in high esteem. I'm sure that President Heckler did good things, as well, but the thing that truly sticks out in my mind was his irrational strategic plan "Project 6000," or whatever it was called. I knew then and there that the university was in desperate need of a highly skilled business leader, not an educator with business training.

[valpo95]

David81:

I appreciate your response - I'm not trying to pile on, nor am I trying to be unfair.

I looked back at the calculation, and realized a quick error in Point #1 as I mixed two values in the denominator - the reports I have are not especially user-friendly. In 2009 there were 2892 undergrads, of which 325 indicated no religious affiliation. So the percentage Lutheran was 901/2892 = 31.1%, and if you exclude the numbers who indicated no affiliation the numbers are 901 / (2892-325) = 35.1%.  The 465 LCMS students would be 16.1% of the total undergrads, or 18.1% of the students who indicated an affiliation. In 2020, there were 2737 undergrads, and 427 indicated no affiliation. So the 2020 percentage Lutheran was 18.4% of all undergrads, and excluding those who indicated no affiliation it would be 21.8%. The 184 LCMS students would be 6.7% of all undergrads, or 8.0% of those who indicated an affiliation. So, yes the fraction of undergrads who indicated no affiliation increased 11.2% to 15.6% consistent with the broad trends, yet the fraction of LCMS students at VU dropped by much more than that.

To put it another way, in 2006 (before President Heckler arrived), there were 603 LCMS undergrads (which would an average incoming class of 151 if we conveniently assume constant enrollment over four years), and in 2020 when he left, there were 184 students (an average incoming class of 46 if constant over four years). Although the fraction of religiously-affiliated students is going down, the decline in enrollment of VU's traditional Lutheran students was far steeper. Those missing students would make (and would have made) a big difference in VUs budget circumstance.

As to the law school, I get that this was a difficult circumstance for many universities, and ultimately the Law School might not have survived. However, the way this was handled, especially the dramatic decline in quality and bar passage rates, was an unnecessary hit to VU's academic reputation. The President in particular (and the Board in general) should have been paying closer attention to this, and clearly they did not.

On the sticker price, I agree VU was not alone in raising prices - private tuition was and is expensive. However, VU had a reputation of being more modestly priced that some of its private university competition (at least through the mid-1990s), and that seems to have disappeared. In addition, the dramatic increase in sticker price likely covered up some of the structural deficits. In addition, there is no possibility of continuing dramatic tuition increases going forward - that may work for Harvard or Yale, yet not for VU. It also would be interesting to see the admissions rates during his tenure, yet I'm guessing that the percentage of admitted applicants also went up. 

It would be unfair to blame all of the ills facing VU on President Heckler - yes, VU faculty were underpaid for some time. However, my sense is that this got worse during his tenure, not better. 

I'm not trying to pile on, and I did not mention anything about athletics.  President Heckler had twelve years at the helm. In that sense, President Padilla has a much harder task and I'm willing to give him much more of the benefit of the doubt in having to make tough choices on a shorter timeline.

[usc4valpo]

How critical is it that Valpo has a significant enrollment of Lutheran students? Why not have a broad base of Christian and non-Christian students? Get the enrollment up with quality students, and not focus on the maintaining a percentage of Lutheran students!

Also, I see Valpo is increasing tuition by 4 percent, which is below the current rate of inflation. In reality to keep up with costs, Valpo should actually increase it by more. Here is the thing - if you want to increase salaries to the median, you need to have generate cash. I totally disagree with valpo22 here - there is concern about low salaries below norm and I respect that, but then he complains about a 4 percent tuition increase that is below inflation. With that reasoning, you will never catch up.

Is Valpo possibly being too generous regarding aid? Is there too much middle management at Valpo? These are important questions whose financial impact is far beyond the coaching situation.

[valpo95]

How critical is it that Valpo has a significant enrollment of Lutheran students? Why not have a broad base of Christian and non-Christian students? Get the enrollment up with quality students, and not focus on the maintaining a percentage of Lutheran students!

USC, I agree with you. I'm not arguing for only focusing on Lutheran students and would very much like to see increasing enrollment of high-quality students regardless of their background.  However, the facts are that one source of VU's traditional student enrollment declined precipitously under President Heckler's presidency. Of course, it did not help that he was the first non-LCMS (and non-clergy) to be President in VU's modern history.

[vu84v2]

I do not agree with the conclusion on urgency. It could certainly be considered urgent while also needing to delay a contract with Sotheby's due to pre-requisites to resolve legal issues/approval.

I would agree with you except that Padilla made timing a point when expressing his reasoning for the art sale plan. He asserted selling the paintings was the only way he could get funds by the end of spring to begin renovation of the dorms over the summer. He said there was a tight schedule and that was why he eliminated some other alternatives. However, that urgency rationalization for the art sale by end of spring option no longer applies.

If they are starting the dorm renovations, then your arguments have some validity. If they are delaying starting the dorm renovations (which is my understanding), your arguments are not valid....its just that everything is delayed (and Valpo will continue to fall short of parity on first and second year dorms when trying to attract new students).

[valpopal]

I do not agree with the conclusion on urgency. It could certainly be considered urgent while also needing to delay a contract with Sotheby's due to pre-requisites to resolve legal issues/approval.

I would agree with you except that Padilla made timing a point when expressing his reasoning for the art sale plan. He asserted selling the paintings was the only way he could get funds by the end of spring to begin renovation of the dorms over the summer. He said there was a tight schedule and that was why he eliminated some other alternatives. However, that urgency rationalization for the art sale by end of spring option no longer applies.

If they are starting the dorm renovations, then your arguments have some validity. If they are delaying starting the dorm renovations (which is my understanding), your arguments are not valid....its just that everything is delayed (and Valpo will continue to fall short of parity on first and second year dorms when trying to attract new students).

Exactly my point. I couldn't state it clearer myself. Thank you. If they start the dorm renovations this summer, then they obviously didn't need the urgent sale of the artwork to make that happen. If they delay the renovations, then Padilla's argument for the art sale—that they couldn't wait for alternative possible options (like a limited fundraising initiative) that might take a little longer and had no choice but to immediately sell the paintings—doesn't hold water. 

[wh]

I just read a glowing industry article about how Purdue is on the cutting edge of change in higher education - no tuition increases for 10 consecutive years, Purdue Global popping with new on-line options, enrollment up 30% in the last decade, a new branding concept adopting the MIT "institute" model rather than the Harvard "college" model for their STEM and business programs, new buildings christened as " institutes," etc., etc.

Meanwhile, back at the ranch, we have faculty members and an art room attendant locking horns with their university's president and board of trustees over the price of tea in China. It's truly incredible.

One step closer to midnight.

[usc4valpo]

My opinion is clear, these renovated dorms for Valpo to sustain and grow take priority over art. If you keep the art, how do you build the dorms, knowing that they are high need for the university?