Higher enrollment, bequests buoy Norwich University
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Students walk to class on the campus of Norwich university in Northfield. JEB WALLACE-BRODEUR/TIMES ARGUS FILE |
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By Peter Hirschfeld Vermont Press Bureau - Published: September 25, 2009
NORTHFIELD – Officials at Norwich University say the nation's oldest private military institution will have plenty to celebrate when alumni flock to the Northfield campus for homecoming festivities next weekend.
Record enrollment numbers and high-dollar bequests have helped the university – roughed up last year by the economic downturn – right the financial ship.
"I'm pretty bullish on the state of our school," says Norwich President Richard Schneider.
This year's incoming freshman class of 732 students is the largest in 30 years. And a five-year capital campaign to raise $55 million has been cut short, officials say, after the university "wildly exceeded" the target a year ahead of schedule.
All this after a 2008-2009 academic year in which a market-pummeled endowment and general economic malaise opened up a $3.6 million hole in the university's operating budget. The deficit forced 27 job cuts, including 12 layoffs.
Schneider warns that the school, a major regional employer, "isn't out of the woods yet."
"Our greatest risk still are parents losing their jobs," Schneider says. "The market is recovering, but we still have way too many people out of work."
Still, freshman enrollment, up 9 percent over last year, has generated needed revenue. A $24 million, 283-bed dormitory is already filled to capacity. Enrollment figures are so robust, according to vice-president of enrollment Karen McGrath, the university has placed some students in temporary housing.
"There's no room at the inn, so to speak," McGrath says. "I think we were all very concerned what the impact of the economic downturn last fall would be on new students and returning students … In fact we've exceeded out enrollment goals."
As a private institution, she says, a major portion of overall school revenue is driven by tuition. And the 121 freshmen attending on full ROTC scholarships have lightened demands for financial assistance.
"It doesn't take as much financial aid to attract a high-end student if they're on a four-year scholarship," McGrath says.
Deep-pocketed donors, meanwhile, have tempered Norwich's exposure to tough market conditions. University officials won't release the final tally on the capital campaign until next weekend but say the school well exceeded the $55 million goal. The money has funded major capital improvements, including a $16 million modern campus center, $6 million museum and a $5 million athletic-complex upgrade now under construction.
"This campaign has enabled us to upgrade our facilities, add to our endowment, make funds available for kids to travel overseas," says Dave Whaley, vice president of development and alumni relations. "It's a chance for us to give students better experiences while they're here."
Schneider says the tens of millions of dollars in new construction projects have been awarded to regionally based companies.
"I think we're keeping local contractors alive in central Vermont and I'm proud of that," Schneider says.
Schneider says he'll maintain an ambitious but prudent course as the university proceeds on a strategic plan that will carry the school through 2019. While Norwich has found other positions and vacancies to re-employ some of the personnel it laid off last year, Schneider says he won't fill the 27 positions eliminated as part of last year's cutbacks.
"I have to be prudent with my institution. This is not the time to be making mistakes," he says. "No one's going to bail out Norwich. We can't look to the state and we can't look to the federal government."
What Norwich will do, Schneider says, is continue with a slate of scheduled capital improvements that he says will cement the school's brand and identity.
"Since the financial crisis hit, we haven't changed a bit with our plan," he says. "Everywhere I look, this plan is working."
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