By Daniel Johnson-Kim, Editor in Chief
The uncertain economy and its effect on ACU was the central theme of the State of the University address delivered by Dr. Royce Money, president of the university, to the faculty and staff Tuesday.
Money declared although ACU’s endowment, which is partly invested in an array of stocks and bonds, dropped more than $55 million since reaching an all-time high of $280 million in 2008, the effect of the economy on ACU is minor compared to other universities throughout the country.
In addition to a 7 percent tuition increase approved by the Board of Trustees in February, Money said the university will apply several measures in reaction to the sagging economy.
ACU plans to reduce its operational budget by more than $6 million, freeze salary increases during the fiscal year of 2010 and reduce the amount the university contributes to its employees’ retirement plans from 8 percent of what faculty and staff put away for retirement to 6 percent. Money said ACU also will limit faculty and staff hiring for the 2009-10 academic year, travel budgets will be reduced in most areas and the university will cut its capital spending by postponing some computer upgrades, building renovations and vehicle purchases.
“We are doing this because we face, potentially, a total problem of between $2 million and $7.5 million in our operating budget, depending upon what happens in the market and with enrollment this fall,” Money said during the speech he delivered in the McCaleb Conference Room in the Bob and Shirley Hunter Welcome Center.
Despite the list of changes brought on by what Money called “uncertain times” filled with “fast-moving economic challenges not seen in our lifetime,” he said ACU still was committed to its 21st Century Vision to become the premier university for the education of Christ-centered global leaders, and ACU’s strengths outweighed its weaknesses.
“My purpose today is not to scare you,” Money said. “It’s to inform you and to encourage you to help each other to be thoughtful and prayerful and hopeful because ACU has far more opportunities and blessings than challenges to face.”
Money said when compared to other universities, ACU is in “much better shape” than these other institutions of higher education. Money cited Duke University, University of Texas at Austin, Texas Christian University, Southern Methodist University and other Church of Christ affiliated schools like Pepperdine University and Harding University as evidence ACU was strong.
Duke lost more than $1 billion, 15 percent, when its endowment dropped from $6.1 billion to $5 billion. UT’s endowment dropped from $19.6 billion to $15.8 billion; TCU’s endowment sunk from $1.2 billion to $1.1 billion; and SMU saw a drop from $1.4 billion to $1.2 billion, according to the Associated Press.
Money said Pepperdine will eliminate 50 full-time and part-time positions and will drop two intercollegiate sports, and Harding will postpone a $4 million residence hall renovation.
“Clearly, these are unprecedented times in this business,” Money said during his speech.
But Money said the ACU community should not let the bad news discourage it. He said more than 99 percent of ACU’s students receive financial support, and the university plans for President Barack Obama’s Economic Stimulus Plan to increase the amount of federal financial aid ACU offers from more than $66 million to more than $70 million.
Money urged students to visit with their financial aid counselors and faculty members to work with the Admissions Office as it makes retention – assuring students returning to ACU after this semester – it’s main objective.
He said ACU’s Mobile Learning Initiative has gained ACU national recognition and attention, and the number of applications for transfer students and campus visits are up.
“Comparatively, ACU is doing well,” said Kevin Christian, director of strategic partnerships. “We have our struggles but thankfully we have committed leaders, a committed campus and a dedicated alumni base.”
Money called the ACU community to action, urging it to pray for ACU, and he told the faculty to “teach the finest lessons of your life.”
“We all know that God works in mysterious ways; His wonders perform,” Money said during his speech. “I believe He is at work on this campus. I believe that all things work together for good for those who love the Lord, and I believe ACU’s brightest days are ahead.”
