Southwestern University is financially stronger than 80 percent of the colleges and universities in the country, but will nonetheless continue to tighten its belt to survive the current economic crisis. 

That’s the message President Jake B. Schrum had for the university community in recent addresses to faculty and staff members. In his talks, the president stressed two key points: 

• Southwestern is “alive and vibrant.”
• It is “deeply engaged” in both short-term and long-term strategies to respond to the current economic crisis. 

“No one at Southwestern is standing still,” the president said. “We will work through this time with diligence and strategic actions.” He noted that in recent years, the University has already taken the following steps to ensure its economic viability: 

• It has conducted a major market research study and implemented an integrated marketing campaign to clearly position Southwestern in the marketplace.
• It hired an outside consultant to evaluate the University’s budget and see if there were any areas where it could be cut.
• The Board of Trustees formed a new Investment Committee to manage the University’s endowment and switched the majority of the endowment to a new manager, CommonFund.
• It has commissioned a study to help determine how best to allocate financial aid money.
• It has launched a priority fundraising campaign. The Thinking Ahead campaign has raised $88.5 million so far and has been extended to Dec. 31, 2010, to reach its $125 million goal.
• It has added a varsity men’s lacrosse program to attract more male students. 

The president said his greatest concerns in light of the current economic crisis are making sure students can afford to come to Southwestern, retaining faculty and staff, keeping educational programs intact, and ensuring financial resources – both in terms of endowment and to cover annual operating expenses. 

Because income from the University’s endowment may be down next year, along with annual gifts and tuition payments, he said the University plans to cut expenses by eliminating all but essential travel in administrative areas and holding all vacant administrative positions open for nine months before filling them. All programs are also being reviewed for strategic budget cuts. 

The president said long-term initiatives under way to ensure financial stability include: 

• Developing a new strategic plan to replace The Strategic Plan for 2010. The Board of Trustees has appointed an oversight committee for this process, which will be chaired by 1971 graduate Robert Karr, the retired head of research for Pfizer. Vice chair of the committee will be 1993 graduate Joey King. A committee of campus representatives will be appointed this month.
• Implementing plans for curriculum reform.
• Soliciting donors who have the capacity to give funds to the University. 

In addition to the success of the Thinking Ahead campaign, President Schrum said Southwestern should celebrate the following accomplishments since 2000: 

• 18 new tenure-track faculty positions have been added.
• Student housing on campus – which is critical to recruitment and retention – has been “vastly” improved with the addition of the Dorothy Manning Lord Residential Center and the recent renovations to Herman Brown and Moody Shearn Halls.
• $9 million worth of renovations to the Sarofim School of Fine Arts were completed last spring.
• The new Prothro Center for Lifelong Learning is under construction.
• The University’s signature Paideia Program continues to grow and thrive.
• Southwestern was invited to join the Institute for the International Education of Students (IES) − a recognition of the effectiveness of its intercultural studies program.
• The Board of Visitors was created, resulting in a new group of influential people who visit campus regularly and spread the message about Southwestern.
• 13 local alumni associations have been launched nationwide.
• The Southwestern Web site has been redesigned and is now more appealing to prospective students.
• The Southwestern Fund (Annual Fund) has exceeded its goal each year since 2000. 

He also noted that applications for Fall 2009 are up 81.5 percent from last year at this time – an encouraging sign. 

The president stressed that the academic environment at Southwestern will not suffer as a result of the current economic crisis. “Students will continue to receive the best liberal arts education in the Southwest here,” he said. 

President Schrum invites anyone with questions or ideas to write him at schrum@southwestern.edu