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Dear Colleagues,
This is to update the campus community on how the University’s administrative areas are beginning to implement the cost savings, improvements, and efficiencies recommended by the Operational Sustainability Review (OSR) undertaken at Valpo since last summer. For your reference, the full report can be found here.
Since the February Town Hall where we outlined the OSR’s findings, staff in each administrative department have met to identify steps to reduce expenses and identify potential areas of new revenue for the University. Highlights of their work are detailed below and reflect intentional and ongoing efforts to build a culture where such actions are part of a continuous process, versus isolated, one-time activity.
ACTION STEPS BY DEPARTMENT TO REDUCE EXPENSES
- Information Technology — A comprehensive analysis of Valpo software usage identified unused or underutilized software that are now being phased out, eliminating this expense. LinkedIn Learning will not be renewed upon its expiration on June 30, 2024. Instead, a comparable software, providing training modules, will be offered at no cost to the University through a community partnership. You can expect to hear more about this new opportunity from IT this summer. In addition, the web interface Mongoose, which facilitated mass and targeted text communications for departments including Enrollment and Advancement, has been discontinued. We will meet the same need by streamlining functions available on broader systems like Slate. IT also will be reorganizing and eliminating some of its hourly positions that were recently vacated and remain unfilled. Lastly, given the widespread availability and popularity of streaming options on various devices, cable TV will no longer be offered in residence halls. Cable television will still be available in some public spaces, such as Bell and Beacon.
- Student Life — A recent audit showed that we host a very high number of events for a school of our size, with some gatherings being duplicative or no longer relevant for today’s student population. Consequently, beginning Fall 2024, select student life activities and events will be eliminated. Activities to be removed will make up at least 10% of the existing budget designated for student activities and events. Other student and/or departmental events will be evaluated, to either be combined or reconceptualized to meet the needs and expectations of today’s students. For example, we will be uniting Family Weekend and Homecoming into the same weekend for an exciting and dynamic event that simultaneously builds new tradition and reduces expenses. Additionally, the student concert will be reimagined with a smaller budget, without nationally recognized touring acts, while remaining a fun and stress relieving event for our students in the Fall.
Student Health Services is another area identified for improvement by the OSR. In response, to expand access to care for students (e.g., nights, weekends) and leverage a wider range of expertise, Valpo has issued a request for proposal to explore if an outside healthcare provider is interested in and capable of providing the needed services for our students along with meaningful administrative cost savings. The proposals will be reviewed in early summer and the goal is to have a provider in place by the beginning of the Fall 2024 semester. To help ensure a seamless transition, current health center personnel will have the opportunity to be considered for positions managed by the third-party operation. - Athletics — In a similar vein, we are analyzing the scope of health and medical requirements for our Athletics Department programs for the purpose of determining which services will continue to be provided internally or arranged through an external provider. An RFP for medical services was issued in late March for responses due back in late May. We will evaluate responses and make a determination before the end of this fiscal year. We also are identifying opportunities to expand partnerships and sponsorships to diversify revenue generation in support of not only athletics but other areas of campus.
- President’s Office — The President’s office will make a series of organizational adjustments to improve efficiency and responsiveness. This departmental reorganization will be implemented by July 2024, streamlining operations, reducing costs, and better defining roles among reporting departments.
- Marketing — The marketing team has evaluated the University’s reliance on external marketing consults and reduced engagements accordingly. Creative work that had been outsourced for the past several years have been brought in house, utilizing Valpo’s talented employees and eliminating the need for outside contractors. Marketing campaigns have undergone extensive review, with new metrics for success, and non-performing ones removed.
- Campus Safety — The University will begin a campaign in Fall 2024 to increase usage of the VALPO SAFE app for the continued security of the campus community. This will allow now-rarely-used Blue Phones to be phased out, eliminating the cost, with the VALPO SAFE app providing students with a direct safety connection on their cell phones, ensuring security wherever they are. Its reach extends beyond campus limits, offering a comprehensive safety solution. In addition to accessing mental health services, the app includes on-demand tracking features to enhance safety during solo walks or in unfamiliar or uncomfortable settings.
- Enrollment Management — We are refining our focus to attract students with a higher likelihood of enrolling at the University, applying advanced data analytics for more sophisticated targeting. We also have adjusted our approach to identify more promising candidates early in the recruitment cycle. These strategies will heavily leverage electronic communication methods, nearly eliminating University spending on printing and postage previously used in recruitment.
- Facilities Management — Currently occupying 2.2 million square feet of building space, the University has already begun to reduce its footprint by downsizing buildings, including demolishing Dickmeyer, Art/Psych, Heidbrink. Sheele/Lankenau Hall, Meier Hall, and Linwood House will be taken offline this summer. A demolition date will be determined as the Campus Master Plan is updated. Taking the above-mentioned buildings offline will remove approximately 220,000 square feet, achieving significant savings including operating costs. The University will reallocate these resources to preventive maintenance and updates for existing academic and residential buildings.
Taking into account all the reductions outlined above, it is projected that University Administration will see a total reduction of $3,066,000 over the next three fiscal years (FY25 - FY27). Similarly, reductions from the academic sector of the University will amount to $3,000,000 during the same timeframe. This translates to a reduction split of 49% from Academic Affairs and 51% from Administration.
In addition to our commitment to expense reduction, we are actively seeking out opportunities to boost revenue streams and explore new avenues for enhancing financial support for both the University and its students.
ACTION STEPS FOR INCREASED REVENUE
- Advancement — Like most institutions, funds raised to support the university are often restricted to specific activities aligned with donor intent. Because of our ongoing need for flexibility in supporting campus operations, we are committed to growing annual contributions to the Valpo Fund, which provides unrestricted use of philanthropic donations. We intend to deepen and expand relationships with donors, thereby preserving existing commitments of donors and incrementally increasing their contributions. The Advancement team is committed to growing the Valpo Fund by at least 18% beginning next fiscal year.
- Finance and Human Resources — The University is initiating the implementation of purchasing standards that adhere to best practices. By harnessing the collective buying power of our institution, we intend to achieve higher rebate percentages from our procurement card provider and start gathering data for negotiating group rates and better terms on commonly used services. An email will be sent to procurement card holders outlining the new approved usage guidelines by the end of this fiscal year.
- AVRO — AVRO, the entity that manages property that is not part of the core campus, is actively listing Valpo properties for sale to generate new revenue for University operations and strategic initiatives. The 3D property, currently functioning as a parking lot across Lincolnway, has already secured a buyer under contract. Additionally, the University will be listing an additional 22 acres of property, which will include farmland near Vale Park and Silhavy and vacant land on the west end of campus. We are currently working with a real estate broker to place these properties on the market within the next month. We will keep you updated on these and any other AVRO transactions.
EXPLORING NEW OPPORTUNITIES-DIVERSIFICATION OF REVENUE
- Strategic Partnerships — The University is forging ahead with identifying new strategic partnerships to better serve our community and strengthen our impact. Currently, we are exploring an option that will allow us to provide workforce development training to businesses in the Chicagoland area, with Valpo working directly with the employer to deliver this service. As we finalize the details of the initiative, more communication will be provided to the campus community by the end of this academic year.
- Enrollment Initiatives — Several exciting enrollment initiatives are underway. Recently, an agreement was reached with Ivy Tech that will simultaneously admit Ivy Tech students to Valpo. These students will start their college career at Ivy Tech and transfer to Valpo after two years. Through this partnership, students will have a Valpo email account, student ID and access to student housing among other benefits. An articulation agreement is also being finalized with the City Colleges of Chicago. Additional details about these agreements will be released by June. In addition, the University will be starting a dual credit initiative with Andrean High School in the Fall and teaching math courses on site. These initiatives will lead to increased enrollment, which of course is a primary source of revenue for our University.
- Grant Seeking — We are actively seeking funding opportunities from both private and federal grants. Historically, grant funds have primarily supported research and student programs. However, we're now expanding our focus to include a broader range of grants in order to support strategic initiatives across campus. This endeavor has been successful in recent years, with approximately $5.7 million awarded in 2023.
LOOKING AHEAD
As you have seen from Valpo's communications since the OSR began, we are actively seeking ways to collaborate in reducing our budget deficit, ensuring lasting financial stability for our community, and enhancing our support for current and future students. I want to express my gratitude to our colleagues who have been contributing ideas, both individually and collectively, to save costs and boost revenue.
Provost Eric Johnson and I will keep you updated on what we're doing across the University, and we will share any new developments in the next few weeks and months. While initial efforts are important, real progress comes from continuous improvement and thinking ahead for the future. If you have any ideas you'd like us to consider, please feel free to reach out— My door is always open.
Thank you for your partnership.
Sincerely,
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Mark Volpatti Ed.D, CPA
Senior Vice President for Finance and Administration
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