Saint Michael's College and the economic crisis
December 3, 2008
Dear Alumni:
Certainly, the worldwide economic crisis is at or near the top of virtually everyone’s agenda these days, and the same is true for the higher education community. Stories appear in the press almost daily about the actions that individual institutions are taking in response, and while the crisis is broadly affecting families and businesses, I want to assure you that Saint Michael's College is on a solid financial footing. Of course, the economy’s momentous shifts in recent months have demanded that we proceed cautiously with prudent planning for the use of our resources. This planning is guided by fundamental principles that students should be able to progress normally toward their degrees with a rich array of academic opportunities in each major, that we have to be particularly sensitive to the financial needs of families, and that it is important to keep all members of our local community—faculty, staff and students—together as we weather this crisis.
Fortunately, Saint Michael's is less dependent on endowment earnings than other institutions, so we expect that the market downturn will have only a marginal impact on operating budgets in the foreseeable future. Also, our limited amount of debt is fixed rate, which means we are not subject to any dramatic changes in interest expense going forward. We are completing capital projects that are fully funded by restricted gifts, particularly the Pomerleau Alumni Center, and, of course, are reviewing all operating budgets for both this fiscal year and the future to ensure the most careful use of limited resources.
The principal risk for Saint Michael's College would be a sudden and unanticipated decline in enrollment. Applications for the next academic year are running about the same as last year, and we have seen very little indication of families withdrawing their support or any unexpected attrition. Nevertheless, we shall monitor this situation carefully and take measures to support both current and prospective students and families as best we can throughout this crisis. We will be especially sensitive to directing our advancement efforts toward the goal of providing financial support to families who are most in need because of changes in their own economic circumstances. This is very much in keeping with the long Edmundite tradition at Saint Michael’s, a strategy which I know is widely appreciated by alumni.
We are most grateful for your continued support and involvement, and I want to reiterate that we are all working strategically to assure that the College not only survives the current economic downturn, but actually thrives and emerges as an even stronger institution. Each of you knows the important role that Saint Michael's has had in your own development, and it is this gift which we are compelled to preserve, especially in this season of rebirth and renewal.
Yours sincerely,
John J. Neuhauser
President