Thomas Jewell, the Carl B. Jansen Professor of Engineering, has published two papers in refereed conference proceedings. “In Pursuit of Undergraduate Engineering Exchanges” was published in the Proceedings of the 2008 American Society for Engineering Education National Conference. He also presented the paper at the conference, held in Pittsburgh last summer. The paper discusses how exchange programs with international universities are a cost-effective way of increasing the number of international experience options available to our students. They are also valuable because they allow our students to gain engineering experience overseas and bring international students to the Union Campus.
Jewell’s "Globalization of the Union College Engineering Programs,” co-authored with John Spinelli, chair of Electrical & Computer Engineering, was published in the Proceedings of the 2008 Frontiers In Education Conference in Saratoga Springs in the fall. Spinelli presented the paper while Jewell was leading the term abroad in Vietnam. The paper describes the emphasis the engineering programs have put on international experience and how the efforts have resulted in 70 to 88 percent of our graduates in recent years having an academic experience in a foreign country while enrolled in a Union engineering program.
Gail Golderman, Schaffer Library digital services librarian, and Bruce Connolly, head of public services, contributed the sections on electronic resources in “History,” “Current Events” and “Popular Culture” to the Reference 2009 supplement to Library Journal.
I am writing to update you on the effects of the economic downturn on Union College and our efforts to develop an appropriate institutional response. It is now clear that the downturn is severe, will not be short-lived, and will affect many sectors in the economy. We are, by all accounts, in the midst of the worst recession since the 1930s. As I indicated in my December letter, the finances of Union College have not been spared from the effects of the economic downturn. Since September, we have been monitoring a number of potential stress points. Let me summarize what we have observed thus far.
Like most national liberal arts colleges, our admissions numbers provide mixed cues. Our early decision applications for the Class of 2013 increased by 7% over last year’s record-setting figures. Our applications for regular admission are down by approximately 9%. While this compares favorably with what is happening at other highly ranked schools (e.g., the New York Times recently reported that some had seen declines approaching 40%), we remain watchful.
We anticipate that the financial need of families will increase. Families in which parents have lost one or more of their jobs obviously will have higher need. Many more families have seen declines in the value of their assets, and this too can affect need. While the full implications for Union families are not clear, we can certainly anticipate more requests for financial aid.
Approximately 15% of our operating budget comes from income generated by the endowment. At the end of our last fiscal year, our endowment value had grown by 3.5% (while average endowment values declined by 3%). Best estimates as of the end of December indicate that the value of our endowment has declined by approximately 27% fiscal year-to-date (that is, since June 30, 2008). It is almost certain that the value of the endowment will be down markedly on June 30, 2009, the date when we value the endowment for purposes of establishing the income that subsidizes our operating budget in future years.
Like many institutions, Union uses a three-year average of its endowment value to determine the endowment income that helps support all that we do at the College. This practice aims at reducing the impact of sudden market fluctuations. Thus, we will only feel minor effects from the current economic downturn in next year’s budget. Looking beyond the next fiscal year, however, our operating budget is likely to be significantly affected by the current economic turmoil into 2013.
Many of our alumni and friends have already stepped forward with pledges of support that are truly inspiring in these difficult times. Others have increased their level of annual giving over past years or reached out to me personally with offers to help the College. For this loyalty and assistance we are deeply grateful. Now more than ever, annual giving is vital to Union’s future. As is the case elsewhere, our overall level of annual giving continues to lag behind previous years, a trend which will have a direct bearing on next year’s operating budget if it continues. In this economy, supporting Union’s foundation through annual giving becomes even more critical to advancing our core mission.
Finally, cuts proposed at the State level will have a bearing on Union and Union families. Bundy (direct institutional) aid has already been cut. The Governor is proposing cuts to the Tuition Assistance Program (TAP) and other education programs. We will continue to monitor discussions in Albany and voice our concerns.
Where does this leave us? It is unlikely that we will have to make drastic cuts in spending to get through the current fiscal year, as has been necessary at some other schools. Our planning focuses on fiscal years to come. The Administration, working with the Planning and Priorities Committee and the Board of Trustees, will continue to control and cut expenditures and seek opportunities for both immediate and future cost savings. We have already identified a number of administrative positions, currently vacant, that will remain unfilled at this point in time. We will carefully evaluate any other positions that become open (some are simply indispensible and must be filled) and are taking action to control other institutional costs without damaging the educational experience of our students or the safety of our community.
As we continue to address the challenges before us, we are mindful of the situation of those who work at and contribute so much to Union, as well as the situation of families who send their sons and daughters to the College. Thus, we will seek to avoid layoffs, modestly adjust salaries to deal with equity issues, increase our comprehensive fee by a lower percentage than we have in recent years, aim to retain our policy of meeting full financial need, and set aside contingency funds to address decreased revenues and/or increased expenditures resulting from the economic downturn. We will also develop budget models that will allow us to move ahead with important building projects and address deferred maintenance needs of the campus.
The current economy poses difficulties for all of us and for all institutions of higher education. But I am heartened by the many expressions of support I continue to receive from the Union family, which speaks volumes about the College’s importance in all of our lives. Know that everyone here will be working tirelessly on Union’s behalf to ensure that we emerge from this difficult period stronger than ever.
I will continue to communicate with you at regular intervals regarding our challenges and our plans to address them. With the backing of our alumni, families, and friends, I have no doubt that we can continue to move Union ahead.
