Transfers

[Columbuseer]

Re: Transfers

As Boat pointed out, WJU is in a strange situation, which IMHO lowers probability of survival.
1. Although they have no loan debt due to bailout from Diocese, they have no tangible collateral to get any significant loans, since they are leasing the land for $2500 a month, purportedly from the Diocese.
2. According to US News: "At Wheeling Jesuit University, 77 percent of full-time undergraduates receive some kind of need-based financial aid, and the average need-based scholarship or grant award is $10,589." Assuming 700 students get financial aid, that is a gap of 7.5M. A 15M endowment won't last long if it is being used.
3. WJU has only asserted they will definitely remain open of ONE year. No other assurances.
4. The drastic cuts in majors and staff are a last ditch effort to size the operating expenses to the current enrollment and willingness to pay for prospective students who have other education choices in the area.
5. The effect of this uncertainty and loss of Jesuit status will be reduced enrollment and transfers, at least in the short term. As some have speculated, maybe football will be a magnet that will improve enrollment. The risk is that they will run out of money before the positive impacts (if any) of this strategy will be realized, for they may have waited too long to take this action.

[Fightingscot82]

Re: Transfers

Bethany's enrollment has plummeted by nearly 50 percent since my son graduated from there 11 years ago. As a result, they are dealing with major financial issues that clearly threaten the future of the institution. Would hate to see that happen. In all my years, I've never met a Bethany graduate of any age who had anything negative to say about their experience at the school. I know my son feels the same way. Hope they can figure it out but the numbers don't look good. Almost seems like there is no place for small liberal arts colleges in today's world.

Same. I know a handful. Each would be crushed.

[boatcapt]

Re: Transfers

As Boat pointed out, WJU is in a strange situation, which IMHO lowers probability of survival.
1. Although they have no loan debt due to bailout from Diocese, they have no tangible collateral to get any significant loans, since they are leasing the land for $2500 a month, purportedly from the Diocese.
2. According to US News: "At Wheeling Jesuit University, 77 percent of full-time undergraduates receive some kind of need-based financial aid, and the average need-based scholarship or grant award is $10,589." Assuming 700 students get financial aid, that is a gap of 7.5M. A 15M endowment won't last long if it is being used.
3. WJU has only asserted they will definitely remain open of ONE year. No other assurances.
4. The drastic cuts in majors and staff are a last ditch effort to size the operating expenses to the current enrollment and willingness to pay for prospective students who have other education choices in the area.
5. The effect of this uncertainty and loss of Jesuit status will be reduced enrollment and transfers, at least in the short term. As some have speculated, maybe football will be a magnet that will improve enrollment. The risk is that they will run out of money before the positive impacts (if any) of this strategy will be realized, for they may have waited too long to take this action.

My understanding of the US News info on percentage of undergrads receiving financial aid is that it includes the people and the amount students receive from federal and state sources. While I'm sure some of the aid comes from WU, I believe most comes from other sources.

WU seems to be "building down" to a much smaller base (I believe the 500-750 range). If that is true, transfers (particularly those that were received large institutional tuition discounts) and reduced incoming enrolement are probably net positives.

While WU's lack of ownership of the physical plant might hinder their ability to get loans, it also probably reduces their need for them. Don't know what the "rental agreement" between WU and the church says but I would imagine that the diocese is on the hook for repair and maintenance and not WU. Also, as "the churches school," WU has a rather unique relationship with the diocese. Diocese has a vested interest in keeping WU open from a PR standpoint and I'd be willing to bet that if it came down to closing the doors or floating WU a loan, provided WU was on a path back to health, they probably would consider that strongly.

WU has a tough road to hoe and they may not be able to do it, but it appears that they are at least intent on trying AND, at least for next year, they intend to try with sports as a major piece of their plan. We'll see if next year, assuming their is a next year, sports is still part of the equation or even if their is an equation.

[IUPbigINDIANS]

Re: Transfers

Hamrick from D&E headed to Bethany.

[Columbuseer]

Re: Transfers

...

While WU's lack of ownership of the physical plant might hinder their ability to get loans, it also probably reduces their need for them. Don't know what the "rental agreement" between WU and the church says but I would imagine that the diocese is on the hook for repair and maintenance and not WU. Also, as "the churches school," WU has a rather unique relationship with the diocese. Diocese has a vested interest in keeping WU open from a PR standpoint and I'd be willing to bet that if it came down to closing the doors or floating WU a loan, provided WU was on a path back to health, they probably would consider that strongly...

Boat, That is what surprised me - the fact they declared a financial exigency AFTER they had their debt load eliminated by the Diocese. IMHO that would point to a more fundamental issue of operating cash flow since capital expenses (buildings) have been greatly reduced.
As an outsider, I cannot see how a D2 college can survive long term with 500-700 students. They must have a viable plan to get to 1500 in the next few years. The smallest D3 school is just under 500 students.


Just my opinion, but I think the PR value to the Diocese is problematic, with loss of Jesuit status and laying off all the Jesuits, having given WJU the land in 1952 to start the school, recently paying off their debt, etc. The Diocese has clearly gone above and beyond so I don't think there is much negative PR risk for the Diocese. At some point, they will have to decide when enough is enough, and whether the money for continued support could be better serve their parishioners somewhere else. In addition, the Diocese could be facing significant legal expenses which is a much more real PR issue due to lawsuit brought by Attorney General of WV.
http://www.theintelligencer.net/news...es-thrown-out/

[boatcapt]

Re: Transfers

I don't see the 500-700 student range as WU's long term goal. Instead I see that as sort of the bedrock base that they will try to build from. Cut staff with a focus on high dollar tenured positions, cut low demand and unprofitable programs and allow students who were paying deeply discounted (and unprofitable) tuitions to leave. Basically strip away all the things that are causing WU to be fundamentally unprofitable. Once they have done that and are on a profitable base, they can start building back to 1200-1500 students by offering new, more in demand programs, with the right mix of instructor staff, to students paying full tuition.

Don't know if they can get there but that, at least to a casual outsider, seems to be the direction they are taking.

Concerning the exigency the school declared. I asked previously if anyone knew what they mean by exigency? Is it being driven by debt or is it being driven by something that is "structural?" If it is the latter, the exigency can be "fixed" by changing the structure of the university (staff size, majors, unsustainable tuition discounts, etc.). If it is the former, I agree, what the heck did they do in two years (since the diocese paid off their debt) to incur new debt sufficient to put the university in jeopardy??

[Columbuseer]

Re: Transfers

...

Concerning the exigency the school declared. I asked previously if anyone knew what they mean by exigency? Is it being driven by debt or is it being driven by something that is "structural?"

As I understand it WJU declared a financial exigency. It may not necessarily be debt, but cash flow, and being on course to run out of money. One of the primary reasons given was heavily discounted tuition.

The American Association of University Professors required colleges to keep them informed on financial health and also involve them when they make major changes to academic programs. A bona fide financial exigency allows a college to layoff tenured staff without threat of lawsuit.

Here is the definition from the AAUP web site.
https://www.aaup.org/report/financia...elated-matters

[IUPbigINDIANS]

Re: Transfers

Who in their right mind will apply for the open men's basketball job?

[boatcapt]

Re: Transfers

Simple math:

1200 students paying a 50% discounted tuition of $14.5K equals $17.4M in annual tuition to the college.

700 students paying the full tuition of $29K equals $20.3M in annual tuition to the college.

Cutting tuition by 5% so that you have to lowest tuition among area private schools:

700 students paying the new full tuition of $27,550 equals $19,285,000

Plus add on top of that the savings the school will derive from the faculty cuts.

On paper at least, there is a pathway to success. The question is will the diocese give them the time and probably more importantly, will students be willing to pay the full tuition...even if it is the lowest in the area?

[CALUPA69]

Re: Transfers

Who in their right mind will apply for the open men's basketball job?

And who INTRM would hang around to play ?

[Columbuseer]

Re: Transfers

And who INTRM would hang around to play ?

Good point.
Top 4 scorers have transferred out, accounting for 54 of their 79 pts per game. Another 6 pts a game graduated, so 61 out of 79 points are gone, as well as the coach.

[Columbuseer]

Re: Transfers

Simple math:

1200 students paying a 50% discounted tuition of $14.5K equals $17.4M in annual tuition to the college.

700 students paying the full tuition of $29K equals $20.3M in annual tuition to the college.

Cutting tuition by 5% so that you have to lowest tuition among area private schools:

700 students paying the new full tuition of $27,550 equals $19,285,000

Plus add on top of that the savings the school will derive from the faculty cuts.

On paper at least, there is a pathway to success. The question is will the diocese give them the time and probably more importantly, will students be willing to pay the full tuition...even if it is the lowest in the area?

Good Points - it probably is the only remotely possible pathway to success, outside of a buyout, but it is definitely not a low risk of failure approach.
When you have just 7 majors, it is more like a community college profile and I am unsure that they currently have an elite reputation in any of these majors.
Since many students are unsure of their major or change their majors once in school, the limited and disparate choices of majors could be a barrier to students applying to WJU.
BTW, with 7 majors, I think Wheeling needs to get rid of the "University" moniker when they get rid of the Jesuit name. Referring to it as a University with 7 majors is laughable.

[boatcapt]

Re: Transfers

And who INTRM would hang around to play ?

I note that last year people on this board were speculating that everyone who was anyone would be transferring to Cal which would mean that Cal was set-up for a MAJOR improvement under Sancomb...GUARANTEE!!! When they did hire Peckenpaugh posters on this board said he was NO comparison to Sancomb and that would be OBVIOUS as soon as the season began. Well, somehow this unknown coach, who got into town late in the recruiting season found a way to put together a team that finished the season pretty strongly...contrary to the guy in the Mon Valley!

It will be even more difficult for WU to find a new coach this coming season but there will be someone hungry enough to take the chance. Will he be able to put a quality team together as quickly as Peckenpaugh did? That will be a difficult task and he may not. But as Peckenpaugh showed last year, there are players out there who can play so it's not impossible, unlikely, but not impossible.

[boatcapt]

Re: Transfers

Good Points - it probably is the only remotely possible pathway to success, outside of a buyout, but it is definitely not a low risk of failure approach.
When you have just 7 majors, it is more like a community college profile and I am unsure that they currently have an elite reputation in any of these majors.
Since many students are unsure of their major or change their majors once in school, the limited and disparate choices of majors could be a barrier to students applying to WJU.
BTW, with 7 majors, I think Wheeling needs to get rid of the "University" moniker when they get rid of the Jesuit name. Referring to it as a University with 7 majors is laughable.

Don't know what the "rules" are for calling a private school a University. I note that the cuts WU is making are coming primarily from the undergrad side so they still offer masters and doctorate programs which is supposed to be one of the major differences between a "college" and a "university." Never really heard of a school that has obtained the mantle of UNIVERSITY going back to calling themselves a College.

I don't see any way they can be long term successful with 7 undergrad majors and 500-700 students. That's why I don't think that is their long term end state. It's almost like a person that declares bankruptcy...cut back to the bone, sell off everything you don't need, sell the BMW 7 Series and buy a Chevy Caviler, sell the 4000 sq ft home with the zero entry pool and four car garage, move into an apartment and THEN start building your life over.

It will be interesting to see if they can do it. Seems like most schools with their problems just throw in the towel and move on to other schools. Most people in administration just don't have the stomach for making hard decisions and would rather just close the doors.

[IUPbigINDIANS]

Re: Transfers

I note that last year people on this board were speculating that everyone who was anyone would be transferring to Cal which would mean that Cal was set-up for a MAJOR improvement under Sancomb...GUARANTEE!!! When they did hire Peckenpaugh posters on this board said he was NO comparison to Sancomb and that would be OBVIOUS as soon as the season began. Well, somehow this unknown coach, who got into town late in the recruiting season found a way to put together a team that finished the season pretty strongly...contrary to the guy in the Mon Valley!

It will be even more difficult for WU to find a new coach this coming season but there will be someone hungry enough to take the chance. Will he be able to put a quality team together as quickly as Peckenpaugh did? That will be a difficult task and he may not. But as Peckenpaugh showed last year, there are players out there who can play so it's not impossible, unlikely, but not impossible.

Danny got snake-bit with the injury bug last year. He was playing 5 guys there for a stretch. They'll be pretty good this year. He's a proven winner ... just a matter of time.