As noted by many others, Valpo is now facing the consequences of borrowing heavily in the early 2010s. I’m not sure what Valpo needs to build next vs what it would like to build next. But the financial picture is….complicated.
@kreitzerstl I think you should know that dorms and a new nursing school are priority 1 and 1a. Both of which make the price more "reasonable" to incoming students. Padilla has said multiple times that a gym would be the last thing on the list and the only way to move it up is if someone puts money forth for it. And by the way, that "flashy sign" was donor funded. No money from the school.
As for what they should build next. Stick to the current plan rennovate dorms into the 21st century as fen z cares about where their money is going and "bang for buck" then work on a new nursing school/clinic on the Broadway plot like planned
Padilla has said multiple times that a gym would be the last thing on the list
Is that why he asked Eli Lilly to fund the project? I seem to recall this board discussing that strategy.
Okay so 2 questions.
1. Where was this stated that Eli Lilly was going to fund a gym enhancement? The Lilly Endowment proposal was never fully released to my knowledge, and previous grants from Eli Lilly for their endowment scholarship program went to the nursing dept. The 2021 winning was a 4 way investment between Drake, UE, Valpo, and North Central College over CUSP. The talk I remember occurring was over the 2024 scholarship class and Valpo not being included, and claims that their argument was "plain bad" as other schools were receiving funding for projects such as athletic arenas. Not that a proposal to Eli Lilly would garner an arena investment. To my knowledge, Padilla, or the committee approaching Eli Lilly, did not make an argument for cash under the guise of funding an athletic center.
2. Even if Lilly were to (and they wont) donate towards an arena. That would fall under the "party coming foreword to pay for it" statement. Logistically, if VU ever does build a gym, it will likely be a partnership with the city over a civic center, or nothing at all. Both of which are a pipe dream in the current state of affairs.
I would like to see more released on the planned dorm renovations and the new nursing school. The school has bean deafly silent on these topics and they have been mentioned multiple times throughout the years as being top priority.
Its exactly what I have been outlining multiple times here. Students are way more interested in where their money is going. I expect a decrease in enrollment on top of the current decrease as a response.
For better or worse (I'd say the latter), this tuition increase is fairly typical right now for schools like VU.
In no way am I defending it. I saw what comparable and higher annual increases did to student debt levels in the years preceding the Great Recession. It's not a good thing.
But I think that VU's overall effectiveness or ineffectiveness at student recruitment will have more to do with enrollment numbers next fall than this increase.
AI Overview
+4
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Operating deficitIn 2024, the university's operating deficit increased to $7.4 million, up from $1.1 million in 2022 and $2.6 million in 2023.
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Declining enrollmentIn fall 2022, the university enrolled 2,958 students, which is a 27.5% decrease from 4,078 a decade earlier.
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Program cutsThe university announced plans to cut 30 academic programs, including majors in philosophy, global studies, and German language. The university also cut an unspecified number of faculty positions.
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Museum closureThe university closed the Brauer Museum of Art indefinitely and eliminated the position of museum director. The university also sold three notable works from the museum's collection to help stabilize its finances.
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Short-term liquidityThe university's cash and cash equivalents were $9.7 million in 2024, which is a decline of 46.3% from 2022.
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Debt service coverageThe university's debt service coverage was 1.12x in 2024, down from 2.23x in 2022 and 1.88x in 2023.
But I think that VU's overall effectiveness or ineffectiveness at student recruitment will have more to do with enrollment numbers next fall than this increase.
Agreed, incoming enrollment matters most. But it would be naive on the uni's part to act as though retention isn't also an issue (which, as the Torch article notes, is down in the 70%s). When I hear of students transferring or dropping out, its not usually because of some positive inspiration on the student's side (like, deciding to go to a uni that has an architecture school or something). Rather, it is usually because of stuff the university does -- tuition hikes which lead students to think they can't make up the difference for yr 2/3/4, registration holds preventing students from getting into classes for the next semester while their financial accounts are pending, and program discontinuances. It's always seemed weird to me there is so much angst about getting students IN the door, but relative little concern about 1 out of every 4 walking back out. That's a LOT of lost revenue...
Hispanic-serving institution? lol Yes, all folks from all walks of life are welcome if they qualify, but AI takes a partnership with some Hispanic organizations/schools to that degree? It just continues to show that AI is not perfect, similar to when ChatGPT had trouble discerning how many R's are in the word Strawberry. It used to give you a reply of 2, as it couldn't make the connection that two R's together is 2, not 1.
As a comparison, my company ChatGPT license gives me:
Yes, Valparaiso University has been experiencing financial challenges in recent years. The university's enrollment has declined significantly, dropping from 4,544 students in fall 2015 to approximately 2,958 in fall 2022—a decrease of about 35%.
In response to these challenges, the university has implemented several measures:
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Academic Program Reductions: In early 2024, Valparaiso University announced plans to discontinue 28 academic programs, including 18 undergraduate and 10 graduate offerings, in fields such as theology, public health, international relations, and cybersecurity. This decision was part of a strategic effort to align academic offerings with student demand and address financial constraints.
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Operational Restructuring: The university has undertaken operational reviews to streamline expenses, resulting in staff reductions and the closure of certain facilities. In June 2024, Valparaiso University eliminated 14 staff positions, including the director of the Brauer Museum of Art, and temporarily closed the museum as part of its restructuring efforts.
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Asset Liquidation: To generate funds for infrastructure improvements, particularly dormitory renovations aimed at enhancing student recruitment and retention, the university sought legal approval to sell valuable artworks from its Brauer Museum of Art. In September 2024, an Indiana court permitted the sale of a Georgia O'Keeffe painting and two other artworks, collectively valued at approximately $20 million.
These actions reflect the university's efforts to address its financial difficulties and adapt to the evolving higher education landscape.
Maybe we should ask AI, "what would you do if you were the President of VU". We might come to the surprise that the faculty would give a full vote of confidence in that plan 
By the way, the last time Padilla addressed the confidence issue his only response was he is disappointed that faculty do not understand tough measure need to be implemented. Now, bear in mind, some of these faculty understand "tough love" for decades now. They just wonder, how many years does one need in the job to show a glimmer of results (or a sign for turning the ship from the path of the iceberg).
Personally, my prediction boils down to this: either the University is saved and Padilla gets full credit (while faculty are viewed as the undeserving peasants of the success) or it will close in a maximum 10 years (if it continues on this path) and Padilla will just cash his severance, take credit for keeping the ship afloat for those 10 years, and blaming the faculty for not being on board with his brilliant plan. Kind of like those war generals who blame the troops for not dying heroically enough.
I hope the faculty reading this and still under the influence of idealism will frame this and get back to it in 5-6 years. We mean NOTHING. Just a bunch of overqualified survivors.
Yeah, I'd be in favor of just putting a big chat-gpt screen in the President's office and outfitting it with some nice Wizard of Oz type puppetry!!
I'm pretty sure ChatGPT would just say the same stuff we've been hearing for decades because its so generic across higher ed, but it would be so much cheaper than paying the president and the consulting firms. VU could probably save a Million per year and get the same exact 'strategic' reports.
Maybe we should ask AI, "what would you do if you were the President of VU". We might come to the surprise that the faculty would give a full vote of confidence in that plan
By the way, the last time Padilla addressed the confidence issue his only response was he is disappointed that faculty do not understand tough measure need to be implemented. Now, bear in mind, some of these faculty understand "tough love" for decades now. They just wonder, how many years does one need in the job to show a glimmer of results (or a sign for turning the ship from the path of the iceberg).
Personally, my prediction boils down to this: either the University is saved and Padilla gets full credit (while faculty are viewed as the undeserving peasants of the success) or it will close in a maximum 10 years (if it continues on this path) and Padilla will just cash his severance, take credit for keeping the ship afloat for those 10 years, and blaming the faculty for not being on board with his brilliant plan. Kind of like those war generals who blame the troops for not dying heroically enough.
I hope the faculty reading this and still under the influence of idealism will frame this and get back to it in 5-6 years. We mean NOTHING. Just a bunch of overqualified survivors.
VU's full-time faculty members, overall, have been chronically underpaid compared to peer universities for decades. VU's institutional quality and resilience have been built on the backs of this group.
Way back when, faculty made this sacrifice at an institution where tuition & expenses remained modest. This allowed VU to be a true launching pad for bright kids from working class and middle class backgrounds, in terms of opening doors without huge student loan debt service. (I count myself among the grateful beneficiaries.)
Furthermore, the physical plant was a ramshackle match for the faculty salary structure. So, at least it didn't appear that compensation was kept low in order to shift funds to pay for shiny new buildings.
IMO, the faculty remains VU's core strength and biggest asset. But I fully understand if many are looking around and wondering why they are not earning a greater share of the university's revenue.
I agree David, but when you don't know where the money is going...people start to wonder. From what I know, way back when, the top brass was way more open about sharing where money was being funneled to. Hence why staff would eat a pay cut if it meant furthering their students and providing top tier educational facilities. However, now the staff seems to be wrapping their torches and dusting off their pitchforks as Padilla doesn't want to share where money is going. Especially post art sale. While he has staged what the likely area money is being funneled to. 0 updates have been given or seem to be in development aside from the closed doors of the board room. I do agree with where that money is going as student accomodations is a major factor for my generation in making a home for 4 years, but it's been months now and the top brass is dead silent as to updates regarding dorm renovations.
I’m not sure how people could be wondering where “the money” is going. Despite repeatedly gutting the workforce, cutting pay and benefits, eliminating programs, majors, and courses, closing dorms, etc., etc., the operating deficit has increased by nearly 700% in the last 2 years.
As to not receiving updates about where the nursing program growth initiative and dorm renovation project stand, what would you expect them to say? The university continues to hemorrhage students, operating income has fallen off the cliff, and if things don’t improve, and soon, reserves are going to have to be further tapped and/or high interest loans will need to be obtained, just to pay the bills. Under these circumstances, I can’t imagine being able to go forward with any building initiatives whatsoever under the current financial dilemma.
@whvalpo Overall, I do agree with you that the place is a financial disaster and really *doesn't* have the money. But then again, the Board/Pres Office keep doing things (even in very recent history) that suggest they still imagine they have cash to play with..... expensive coach buyouts, expensive rebrandings and color-re-schemings, expensive hirings of consultants, etc. So until they figure out some sort of consistency in the austerity narrative they're always pitching to the faculty, I'm not very inclined to take them seriously. The Titanic may have been physically doomed at a certain point in taking on water, and the captain of the Titanic may have been a fool, and both those things can be true simultaneously.
