Global Economic Turmoil and Bucknell
October 15, 2008
Dear Bucknellians,
I write to share with you facts about the University’s finances given the turmoil in the financial markets. The summary at the bottom of this message reflects Bucknell's strong financial position and our determination to closely monitor University-specific, national, and global issues. This summary, which was initially prepared for the Board of Trustees by our Finance Office, reflects our intent to rigorously assess the University’s budgetary position. The Board and the Administration are committed to a continuing evaluation of our finances as the impact of this economic situation continues to unfold. I also want to thank the Planning and Budget Committee for their ongoing review of University finances, which also informed this summary.
While the University has been affected by this turmoil, our position remains strong, particularly in comparison with other institutions in higher education that have not been as prudent in managing their resources as Bucknell has over the long-term. Thanks to a careful investment strategy, for example, the University has been diversifying its endowment. As a result, while the University's endowment has not been immune to the economic downturn, it remains healthy. Moreover, we have sufficient liquidity such that the constriction in the credit markets has not created any significant budgetary or operational problems.
To stay ahead of the situation, the trustees and I have asked Kurt Thiede, our Vice President for Enrollment Management and Dean of Admissions, to undertake a thorough review of the financial aid program to determine the potential impact that the economic turmoil may have on our current students as well as prospective members of the Class of 2013. This analysis will also look at the impact on our peer and aspirant institutions and the steps that they are taking to address the current situation. We do so confident that we have the resources to honor our existing financial commitments to our students, and, more than that, the financial strength as a University to work with any families who have been significantly affected by the financial situation.
Recognizing that the University must be prepared for the possibility of an enduring economic downturn, we also are taking these additional steps:
- the senior staff, notably the President, Provost, and Chief Financial Officer, will vet all personnel and spending requests not already approved until we become convinced that the economic situation has steadied, and
- except for approved faculty searches, the same review will occur of current vacant positions and discretionary expenses, and, where strategically possible, such spending will be reduced.
We take these steps appreciating that prudent fiscal management has placed the University in the sound financial position it enjoys today despite the recent economic changes, and with determination to protect the University at this difficult time.
We will be sharing this same memo with the Alumni and Parents Boards and making it available on the website to all parents and alumni as well, along with a series of FAQS that will address questions parents and students in particular have about these matters. That website will be available shortly.
Over the coming weeks and months we will continue to monitor the economy and the financial markets and consult with the Committee on Planning and Budget, the Board of Trustees and our financial advisers as necessary.
Finally, my special thanks to the senior members of the University’s financial staff, including David Surgala, Vice President for Finance and Administration; Dennis Swank, Associate Vice President for Finance; Mike Cover, Treasurer and Controller; Chris Brown, Chief Investment Officer; and John Luthi, Investment Analyst, as well as the Committee on Planning and Budget chaired by Nancy White, Mick Smyer, Provost; and David Myers, Chief of Staff, for working to address these vital issues.
Brian C. Mitchell
President
