Special Message from the President
April 2, 2009
Dear Biola Community,
I want to take a moment to provide you with an update on Biola's financial position, as we are now beginning our final quarter of the fiscal year. Each week, the Financial Affairs team is carefully monitoring the regional and national economic landscapes to determine the changing impact the economy is having on Biola University, our students and their families.
We continue to be challenged by the economic uncertainty around us, but prudent fiscal management beginning early in the year has allowed us to remain in a strong financial position. As I reported to you in November, Biola's investment income has taken the hardest hit, and we need to both hope for a market recovery by June 30, 2009, as well as do our best to contain spending through the balance of the year.
Spring enrollment came in under budget, but thankfully, this was offset by a strong Fall 2008 enrollment, putting us in a better position than we might have been given the economic downturn. Next Fall’s enrollment picture shows some positive signs as new student applications for the fall are running well ahead of last year’s pace at this time. Both graduate (+10%) and undergraduate (+8%) applications are ahead. We are thankful that even in the face of economic uncertainty, interest remains high and God is blessing the work of our marketing and enrollment teams. At the same time, our deposits are flat from last year, so we need to continue planning for a level enrollment for 09/10 as it relates to our budget.
In addition to the positive application numbers, we are also trusting that the additional funds provided for financial aid in 09/10 will have a positive impact on enrollment. As you will recall, one of the reasons for the 09/10 budget cuts was to provide an additional $1 million in student aid. Every week of the last month, hundreds of financial aid offers—many of them enhanced by these additional funds—are being sent to prospective students. Our Financial Aid Office is also beginning to award continuing students. We trust that those students who will see increased awards, even in the face of modest tuition increases, will be encouraged to begin or continue their studies at Biola.
We understand, however, that the positive numbers in recent application reports should be put into the context of today’s unique economic environment. We will continue to track the numbers and monitor external conditions, and while the economy’s impact on enrollment will become more evident in the coming weeks and months as we communicate financial aid offers, it will not be known for certain until the end of registration in August. Pray for our current and prospective students as they consider and review their financial resources to attend Biola.
Biola also has had a strong giving year to date with fundraising efforts. The Advancement team reports that donations to the University remain strong, despite the current economic downturn. Annual Fund giving is ahead of last year’s pace by more than $100,000, with more than 400 new donors. Although the economic environment is having a marked impact on our donor base, we continue to marvel at God’s provision.
The reports from admissions and fundraising reflect optimism for us in the next few months but we will continue to be prudent in our financial planning and management while remaining on track with university planning. As I have stated, we will not succumb to a fearful, “hunker-down” response. We will view this economic challenge as an opportunity to focus on our strategic themes and distinctives and soon I will unfold updates on progress made on new initiatives this year.
With God’s grace and good stewardship Biola will weather this season of uncertainty and be more firmly positioned to serve the educational needs of this community.
In the spirit of keeping on track with University planning in some areas that do not impact operational budgets, the decision has been made to move ahead on acquiring a building permit using donated funds given for the construction of the first Talbot building, slated for groundbreaking in early 2010.
Also, for the past two years, Biola has been working toward achieving complete control of nighttime access to secure the campus. The installation of fencing has progressed on the accessible eastern and western sides of the campus, along with the addition of card-activated pedestrian and vehicle gates. Plans are being developed to install the remaining fencing and gates on the western side this summer, thereby continuously securing 88% of Biola’s two-mile-long perimeter. Funding for this is provided by Auxiliary Services room and board fees designated for improved residential student security. Then the focus will be on finding ways to secure the remaining 1,300 feet of the eastern side.
These budgetary cuts and precautions are so important for us to embrace as we continue to remain on watch of the economy. But I know that the Lord will be faithful to us as we seek his guidance and wisdom. Thank you for your continued support. Continue to pray for us as we navigate through these uncertain times and provide an education for the many students who desire to attend and graduate from Biola University.
Barry H. Corey
President