The new president is not going to have a lot of time and space to chart a new and effective course. The big issue is enrollment declines, which has to be reversed immediately. The poor performance for new enrollment in Fall 2025 will have a ripple effect for four years and it is very unlikely there will be improvement in Fall 2026 because there will be no meaningful strategic changes with Padilla still in place during the critical planning and initial implementation period of the Fall 2025 semester. So four years of ripple effect from that. (S)he must reverse enrollment declines starting in Fall 2027.
Gang, whoever becomes president of Valpo also needs to be given some time and space to do what’s right to clean up this mess. There will be some tough decisions to be made, and I guarantee not everyone on this board will be pleased or in favor of these actions.
I'm going to tentatively disagree, @usc4valpo, and I emphasize tentatively.
Valpo needs someone who is going to expand the pie. At least in terms of programs and majors, there's not much more room to cut without looking like you're in a race to the bottom. Enrollment has dropped to the point where VU is starting to look like a small college in how it presents to the world, rather than a medium-sized comprehensive university.
I think it's about getting the right senior staff (some of whom may already be in place), repairing relationships with the faculty, getting alums and board members excited over VU's future, and ultimately creating an enthusiastic buzz among the students and prospective applicants.
A campus community nervously awaiting the next round of cuts or painful changes is not an engaged one. It's a bunch of faculty, admins, and staff fearing for their jobs, a bunch of students fearful about the stability of the institution and the value of the degrees. and everyone fearing for the school's survival.
@david81 - be aware that a strong president will need to make decisions that will not make everyone happy. I think the enrollment is in the low 2000’s, and correct me where I am wrong. Three dorms are currently mothballed. If the number of faculty is higher than what is required with the enrollment, then you likely need to trim down or restructure. It will take awhile to clean the mess made by Heckler and Padilla.
@david81 - be aware that a strong president will need to make decisions that will not make everyone happy. I think the enrollment is in the low 2000’s, and correct me where I am wrong. Three dorms are currently mothballed. If the number of faculty is higher than what is required with the enrollment, then you likely need to trim down or restructure. It will take awhile to clean the mess made by Heckler and Padilla.
But that's exactly my point. "Trim down or restructure" means even more layoffs and program cuts. This university has been in that mode for almost a decade now, and it has to stop. More of the same brings only more deeply plummeting morale and a sense that the place is circling the drain.
Assuming the core academic offerings are sound -- and I think we can say that VU's have much to offer -- a great new university leader should be able to increase enrollments, build programs, and raise money, rather than come on board simply to manage decline better than their predecessor.
@david81 - here is the issue - we need to review and ensure the core academic offerings are strong without any assumption. If they are not, you have a diluted product. Focus on the strengths with quality and growth potential and build from there. Then you have a product where enrollment can increase.
Had breakfast with a Very High Valpo official who confirmed that finalists are on campus this coming week. VP’s, among others , will also be meeting with candidates. Also found out that Valpo has been drawing down the endowment at an 8 percent rate rather than the normal 4. Board is looking to get back to 4.
A couple of incredible Valpo student stories plus Padilla’ farewell. The students drew standing O’s.
@david81 - here is the issue - we need to review and ensure the core academic offerings are strong without any assumption. If they are not, you have a diluted product. Focus on the strengths with quality and growth potential and build from there. Then you have a product where enrollment can increase.
VU is already so cut to the bone that we can assume a lot of that vetting has been done by way of a near decade of downsizing. The more significant issue has been leadership.
Furthermore, I think we need to be careful about labeling growth potential. For example, just 5 years ago, virtually anything STEM fell into that category. Today, computer science majors have higher unemployment rates than graduates of many other disciplines, including some of the liberal arts and humanities. Many of those degrees are now obsolete.
Plus, I will push back on the description of higher ed as a product. It is an experience, both educational and social. If the overall outcomes are successful, then graduates have obtained both vocational and social benefits.
But even if we stick with the product verbiage, the product is strong. The bigger problem at VU has been how to market that strong offering to prospective students, many of whom in recent years have been opting for other schools that ultimately may not have been as good a fit for them. Financial aid is the other piece of it, and now we’re back to fundraising.
Had breakfast with a Very High Valpo official who confirmed that finalists are on campus this coming week. VP’s, among others , will also be meeting with candidates. Also found out that Valpo has been drawing down the endowment at an 8 percent rate rather than the normal 4. Board is looking to get back to 4.
A couple of incredible Valpo student stories plus Padilla’ farewell. The students drew standing O’s.
That endowment draw is high, but unfortunately similar to many schools in VU’s overall financial picture.
I’ve compared it to annual draws on a 401k: 4 percent is in keeping with general recommendations; 8 percent undermines long-term viability.
Fortunately, my guess is that with the market so strong at the moment that the endowment's investment return is probably 8 percent or more. That is not sustainabile, of course and I agree that they need to get the draw back down to 4 or 5 percent.
In regards to the new president, s(he) will likely need to make some hard decisions at the beginning. This might involve replacing some senior people or cutting a few programs. A good turnaround strategy in such cases is to take those steps quickly, then get everyone together and say "we're done and, now, let's move forward". It is doubtful that a new president can just start with just the positive.
Valpos largest hole for the last few years has been in the marketing and enrollment department. I don't think Valpo needs to cut or add anything out of the gate. The first thing that needs to be done is a role needs to be created to find someone to operate enrollment and marketing.
Like others have inquired, Valpo does offer a great financial package in addition to highly ranked degree paths. However I have seen too many posts on different platforms all saying the same thing. "I am getting a good deal, and the programs look really good, but I have seen such and such in the news and I am scared".
Valpos largest hole for the last few years has been in the marketing and enrollment department. I don't think Valpo needs to cut or add anything out of the gate. The first thing that needs to be done is a role needs to be created to find someone to operate enrollment and marketing.
Like others have inquired, Valpo does offer a great financial package in addition to highly ranked degree paths. However I have seen too many posts on different platforms all saying the same thing. "I am getting a good deal, and the programs look really good, but I have seen such and such in the news and I am scared".
Valpo has recently added a new VP of enrollment who came from a successful past at Illinois Wesleyan. I didn’t get to meet her but the video was very positive.
There are three things - First, the endowment draw is a problem as noted above; a big issue for sure yet perhaps understandable. Second, the financial impact it is somewhat hidden, yet VU borrowed millions under a line of credit (secured by the endowment), and the interest on that line of credit is a huge drag to on the budget. Most of that was converted to junk-rated bonds this year, which comes with high interest rates. Third, VU has been paying interest only on debt associated with some of the more recent buildings constructed under President Heckler, and the principal re-payments are beginning (I think in 2025 and 2027, yet not exactly clear to me without the loan documents in hand).
All of this makes the financial management a big issue - this is unlikely to make a big difference to to the academic program of student on campus for four years (unless the program gets cut entirely), yet it makes it hard to recruit and retain faculty or invest in needed infrastructure. It also makes fixing the enrollment decline the marker of success.
@david81 - disagree on your perspective of STEM. Yes, computer science degrees have gradually become less desirable in the past 20 years. However, employees with other STEM degrees are in high demand.
regarding a product, always verify its quality. If the quality is lacking, the experience is a moot point.
also, numericallly speaking let’s say Valpo had 3500 students in 2015, and now they have 2100. Has Valparaiso reduced enough employees close to proportion to accommodate this budget? If not, sad as it sounds, more employee cuts or major cuts may be needed. Increasing the enrollment back to normal operating numbers will take time, and Valpo needs to prepare for this.
Ladies and gentlemen, the President of Valparaiso University, Jose Padilla…
https://m.youtube.com/watch?v=3siYDSSmgCY
