A Special Report by the President on Strategic Initiatives to the Board of Trustees

Temple University

A Special Report
By The
President

ON STRATEGIC INITIATIVES

To The
Board of Trustees
of
Temple University



I would like particularly to thank Dr. Richard M. Englert, Associate Vice President for University Administration (and presently Acting Dean of the College of Health, Physical Education, Recreation and Dance), as well as the faculty, students and administrators for their ideas and efforts in the preparation of this report, including Professor Kyriakos M. Kontopoulos and members of the Executive Office of the President.



Report Contents



Special Report by the President on Strategic Initiatives to the Board of Trustees of Temple University




June 26, 1997

A Special Message from Richard J. Fox,
Chairman of the Temple University Board of Trustees

On June 26, 1997, the Board of Trustees approved "A Special Report by the President on Strategic Initiatives." The product of many months of study and review by President Liacouras and the Board's Strategic Planning Committee, this Report underscores the regional, national, and international character of the future Temple University.

These Strategic Initiatives represent the next phase of a future that was begun three years ago in "The Plan to Renew Temple's Mission." As President Liacouras points out, colleges and universities must either embrace enormous change or risk becoming irrelevant in today's "volatile educational marketplace."

Temple has boldly faced the need to change: its academic programs are stronger; its faculty and administration are more productive, its campus environment is dramatically improving, and services to students are being streamlined -- all within the framework of balanced budgets and financial stability.

The University embarked on a review of all graduate programs, launched the innovative Learning Communities, and enhanced the Honors Program, Writing Center, and Math and Science Resource Center.

Among the many other initiatives undertaken in recent years are the Advanced Academic Technology and Student Recreation Plans; the Academic Resources Center; renovation of Rock Hall as Philadelphia's premier chamber music venue; and construction of a new Student Residence Hall, the SEPTA rail station, The Tuttleman Learning Center, the Temple University Children's Hospital, projects at Temple University Ambler; and The Apollo of Temple, which is the linchpin for the dramatic revitalization of the Temple community.

The Report on Strategic Initiatives is an important blueprint for action that focuses on Six Priorities: repositioning Temple as a regional university, reinvigorating Temple's flagship Main Campus, preserving academic excellence, attracting the best and brightest students from the suburbs, responding to students, and continuing the effort to increase productivity.

It offers a challenging, exciting path to renewing a great 113-year old institution of higher learning near the dawn of a new millennium.

I urge everyone who cares about the future of Temple University to read it.


Revised
May 22, 1997

Preamble

[See Exhibits 1 through 5 for this section]

The Board of Trustees, following the broadest consultation with all University constituencies, has been restating the University's priorities in light of the velocity of change occurring in the marketplace of higher education.

In the context of the rapidly-changing environment, the present report describes specific actions and their rationale in relation to the University's strategic directions.

Today, universities are operating in a profoundly changing context which includes a volatile educational marketplace.

The context includes: Institutions conducting "business as usual" will lose out and can wither into irrelevancy. For Temple, which historically has demonstrated resiliency and achieved "great things with little means" as Founder Russell Conwell was fond of saying, the changing context poses another challenge. The sense of urgency and soul-searching were triggered by an abrupt decline in undergraduate enrollment from the suburbs, and particularly among white males, together with a decline in admissions-selectivity of undergraduates.

To emerge and prosper as a winner in fulfilling its public mission, Temple University is responding with actions we believe are strategically correct, academically and financially sound, and in tandem with its historic mission.

In a word, Temple is repositioning itself for an exciting future.


Revised
May 22, 1997

Priority 1:

Repositioning Temple as a Regional University


[See Exhibits 6 through 8 for this section]

To fulfill its mission as a public research university in the future (discussed in Priority 3, below), Temple must become a full-fledged regional university.

This involves initiatives taken alone and with partners, new courses of study, advanced academic technology, new modalities of instruction, and a variety of regional and international sites. It also requires a change in those "mind-sets" that equate "Temple" with "City" and "North Philadelphia" and "crime."

The fact is that Temple is already a regional institution but too often acts as though it exists only on its Main and Health Sciences campuses.

Temple's urban component is obvious. It will be here for generations to come.

The issue is not one of exclusivity, of black or white, of male or female, of urban or suburban. It's a matter of extending Temple's education to all parts and persons in the region. It's a matter of reaching prospective students around the nation and world in response to the technological, demographic and economic changes forming the new context.


Developing a Coordinated "Temple University System of Higher Education"

Expanded in scope and size, Temple University Ambler is central, though not exclusive, in Temple's regional strategy. Other suburban sites in the Greater Philadelphia Region, in Harrisburg, and at Temple University Center City will play important roles as "hubs." So will Distance Learning at every site. Vice President and Dean Caldwell is providing leadership on these fronts.

The population in the 8 counties surrounding Philadelphia has now reached 3.7 million. The City's population has declined from 2 million in 1950 to 1.5 million. This demography must be reflected in Temple's strategic plans. Not to do so is akin to institutional suicide.

Temple's growth as a regional institution will come primarily from the eight counties ringing the City of Philadelphia. These suburbs are growing. They have a large and expanding pool of qualified applicants from all backgrounds. They are better-prepared academically for a rigorous university curriculum. They are more likely to graduate. Their financial condition is better than the average city resident, which means that retention and graduation are more likely, too. That's important because the University's goal is to prepare its students to become key players in the Information Age and Global Marketplace, and to be constructive citizens.

Temple is establishing itself as an attractive alternative for this target market. In doing so, a coordinated "Temple University System of Higher Education" will evolve.

There will, over time, be affiliations, consolidations, and mergers with other institutions. A fully developed "System" will emerge. The intent is to fulfill the public mission of making high quality education conveniently available to the widest range of qualifying University students at an affordable tuition.

To repeat: the intent is not to reduce this or that demographic group, but to expand Temple's reach to all groups in the region.

In the accompanying document titled "Timelines for Actions," specific initiatives are described. These initiatives are intended to meet the needs of the entire region. Achieving the goal requires simultaneous expansion of the residential nature and appeal of the Main Campus.

The national reputation of Temple is good. Students from around the nation increasingly form part of the student body, especially in the residential student population on the Main Campus (discussed next, in Priority 2).

It bears emphasizing that the two priorities - - regionalization and a strong residential Main Campus - - are complementary, not contradictory.


International Components

Paradoxically, Temple's good reputation leap-frogs from the "City," to the nation and world, by-passing many of the immediate suburbs. While correcting this suburban misconception, Temple's regional strategy will also build on its international strengths.

Temple's international programs are acknowledged as among the best.
Carefully but aggressively, the University will consider further international expansion. The standard for such programs will be whether they benefit the main purpose of Temple in serving the people of this region with high quality, affordable education.


Explosion in Technology, Distance Learning, the Internet

With its regional strategy, Temple will deliver high-quality education closer to the homes and workplaces of the region's citizens.

Regionalization and internationalization are also by-products of the explosion in technology.

The modalities and reach of education will greatly be affected by the new Information Age. No one has the prescience to describe specifically how higher education will have changed by the Year 2010. But change it will, and those who are on the right side of the technology curve will probably be in a better position to come out as winners.

That's why, as described in the accompanying "Timelines for Action," Temple in 1994 identified investments and training in advanced academic technology (Distance Learning, etc.) as a priority for all parts of the institution.


Revised
May 22, 1997

Priority 2:

Reinvigorating and Transforming Temple's Flagship Main Campus into a Residential Community of Scholars ("Temple Town")



Commuting patterns have changed along with the exodus of the population from the city to the suburbs, and with new technology.

Automobiles have replaced public transportation as the major source of travel to college for suburban commuters. Staying close to home or work, rather than taking long commutes, is an imperative for today's students. And with new technology (Distance Learning, including the Internet), the home or office will occupy a more important, if not central, position for higher education and for increasing numbers of students, at the expense of commuting and "commuter schools."

Residential campuses will be less affected. In Temple's future, growing residential life on the Main Campus is a priority.

In pursuing the regional strategy of campuses and sites and in developing the "Temple University System of Higher Education," the Main Campus will play a critical role. It will be the center of a vibrant, appealing residential "Temple Town."

The Main Campus can not flourish simply as an overwhelmingly "commuter" campus.

Presently, 80% of Temple's students come from within the televised beam of Channel 6, 20% from outside. In comparison, the University of Pennsylvania's "mix" is the exact reverse. This means that, within this regional market, a highly-publicized series of crimes in the city, even on the Penn campus, potentially affect Temple's future enrollment multiply more than Penn's because for their 80% (compared with our 20%), it's "out of sight, out of mind." The statistical safety of a specific city-based campus is drowned out by stereotypical generalizations about all city-based campuses or about the larger geographic section of the city in which a campus is located. From constant media bombardment, people become reluctant to enter those zones.

An ongoing challenge is to educate the public and convince the media to be factually discriminating in its perceptions. Part of the challenge requires a sufficient size and personality for a campus to be differentiated from otherwise undifferentiated geographic sections of the city. "Temple Town" with its own personality and identity is an essential development in this future.

One way or the other, over the next several years, Temple must change its present "mix" of 80% - 20% to more like 70% - 30%, with the Main Campus housing the additional students from outside the region.


The Main Campus as a Residential Community of Scholars

So, the flagship of the Temple University System will develop into a more residential Main Campus. Marked improvement in the quality and breadth of campus life on the Main Campus has been, and continues to be a major priority.

Tremendous recent investments have been made by the University, the State and friends of Temple to encourage this development. They include: The Apollo of Temple, The Learning Center, a new Student Residence Hall, new student dining facilities, Shusterman Hall for seminars and conferences, the Law School's College Hall Annex, the possible relocation of Tyler School of Art and parts of the College of Allied Health Professions to Main Campus, additional Student Recreational facilities, and the continued development of the "Avenue of the Arts, North" with Rock Hall and Boyer Theater (within the Convocation Center of The Apollo of Temple).

Those projects will, predictably, stimulate other investments in the area by the private sector and create a sufficient Temple-connected "mass" to separate Temple's identity from an undifferentiated North Philadelphia.

Even before it opens, The Apollo of Temple is creating considerable interest among developers in blocks adjacent to the Main Campus. A hotel and conference center serving all of Temple's needs (presently satisfied in Center City), new retail stores, live-music restaurants and entertainment, renewal of the business district along Cecil B. Moore Avenue, and housing rehabilitation - - all of these - - are now more probable than hopeful.

Temple's goal is to create a critical mass of 5,500 to 6,500 students and staff living on or within a short walking distance of its campus by the Year 2002, including as many as 1,500 additional University student beds.

Combined with an additional 25,000 other students, faculty, staff and visitors, and those who will be customers of The Apollo of Temple and related projects, the purchasing power in the Main Campus area will then be sufficient to entice additional business and cultural investments. A vibrant, lively Temple Town with educational, cultural, recreational, and athletic activities will, in turn, help attract students, employees and visitors to this academically excellent and socially diverse public university.

In all these developments, Temple will continue being a good and progressive neighbor in North Philadelphia while working together to improve the ambience of the community.

Intercollegiate Athletics on the Main Campus

As we all know, a successful intercollegiate athletics program is a cornerstone of strong campus life. Athletics play an important role in recruiting and retaining many good students, in raising revenue from sources not otherwise available, and in attracting many people to the campus. Athletics have certainly helped raise Temple's name recognition and reputation across the nation. Intercollegiate athletics at Temple are honest and good.

Driven by financial pressures, and because of their high visibility, these programs are critically evaluated on every college campus. At Temple, it's been (you'll excuse the expression) a "political football." There's literally been open season on football by vocal faculty and news media, for generations.

The major task for Athletics at Temple is to increase its revenues from football and basketball ticket sales, television, sponsors and merchandise, while also raising substantial endowment funds ($10 million) for the financial aid awarded to the nearly 500 talented student-athletes in 20 sports at the University.

Winning football games is, of course, indispensable to being a viable program. Attracting substantial spectators is a companion need.

But, for Intercollegiate Athletics as a whole to be successful over the long haul, two specific obstacles must be overcome.

The first is a combination of relative alumni apathy and active faculty opposition to Division 1A football. For Temple, it's Division 1A football or none (unless the Internet became a "home" field). Without Division 1A football, Temple's basketball programs face a very steep, uphill climb to maintain a national profile. That's because the NCAA's complex restructuring of 1997 is grounded on enormous financial incentives for the relatively few colleges in conferences that are deemed 1A, and "let them eat cake" for the rest.

The new NCAA system rewards a college which has a majority of its sports programs in a Conference where the majority of member schools play Division 1A football. The new system relegates all other Conferences and their members, whether or not they have a 1A football program, to "have nots." This is an unparalleled change in the athletics-entertainment context because of the business nature of 1A football, with anti-trust implications.

A majority of Temple's athletic teams compete as members of the Atlantic Ten, a non-1A Conference. The potential effect on Temple from the NCAA's restructuring has not begun to be comprehended by the critics concerned about their costs. But it is fully understood by Temple's Director of Athletics. Correctly, he is seeking to educate the community and develop the broad-based support he needs for long-term success.

The second obstacle to Intercollegiate Athletics relates to inadequate open spaces for this Division 1A institution. All "home" games (excluding Crew and Golf, of course) should be moved to Main Campus to increase spectators and school spirit. For fourteen years, the University has sought such open space from the City and School District, adjacent to Main Campus as playing fields for soccer, baseball and softball.

We must bring closure to this issue. With substantial increase planned in the undergraduate residential student population on the Main Campus during the next five years, success on this second obstacle can then be overcome.

A Vibrant Health Sciences Center

During the past 15 years, the Health Sciences Center has been the object of tremendous investments by the University in its Hospitals, the Medical School, the Dental School, and the School of Pharmacy.

Those investments include the new Temple University Children's Hospital with the companion Shriners Hospital for Children (opening in December and early next year, respectively). The University's investments in the Health Sciences have yielded outstanding educational and clinical results as well as national and international recognition. The University's support for the Health Sciences Center will continue in the context of today's wrenching financial market in the delivery of health care.


Revised
May 22, 1997

Priority 3:

Preserving Temple's Academic Excellence As A Public Research University With Outstanding Graduate And Professional Education; Or, As Some Prefer, Preserving Temple's Status As A"Carnegie Research I University"



[See Exhibits 9 through 15 for this section]

Academic excellence must be the consistent standard for Temple to succeed in all its priorities.

Building on a broad range of strong undergraduate programs, Temple fulfills a second important public service by offering outstanding graduate and professional education at an affordable price for most students, and in supporting research by its highly competent faculty.

"The University" is an expansive concept that develops the broadest perspectives and interests through positive synergism among its parts. It's not a parochial or limiting concept. It's not an undifferentiated forum for competing interests of persons, groups, disciplines and costs. It is, instead, a civilizing concept that develops and expands its component parts into a larger, dynamic whole. Everyone benefits from being part of "The University." Larger society also benefits in the long run from the University's contributions - - educationally, culturally, aesthetically, scientifically, technologically, and financially. Much more, then, is involved than simple calculations of the financial costs and benefits of its various parts.

Universities include a wide range of programs and interests, with differentiated costs. Some programs "pay for themselves"; others are net financial "losers." Some programs entail one-on-one instruction or expensive laboratories; others include 200-student lecture classes.


Temple's Student "Mix" Must Be Improved to Maintain Research I Status

To afford the graduate-research-professional mission, universities (including Temple) engage in reallocating revenues. They recover some of the costs in higher-cost academic levels or subject areas from an excess of net revenues in lower-cost offerings.

This process of reallocation is a constant and necessary feature of research universities. Without it, there would be no music, fine arts, theater, or dance programs because they're considered too expensive even with the great benefits they yield for the University and society. They can be sustained only when the overall student body includes sufficient students and revenues in less-expensive disciplines. (In health care, as another illustration of this point, there would be little free hospital care for the indigent, without a reallocation of revenues from commercially insured patients.)

Reallocation is a compromise within the University because "differential" tuitions and fees cannot, as a practical matter and consistent with a public mission, fully fill in the gaps. (For specific school-by-school cost-comparisons at Temple, see Exhibit 15, "1996-97 Budgeted Subsidy Per Full-Time Equivalent Student," derived from the "Full Revenue, Full-Expense Budget for 1996-97.")

As indicated, Temple is having trouble in this area because it's an academically top-heavy university, and therefore top-heavy in costs. Some 35% of the students are in the highest academic levels - - Graduate or Professional (Law, Medicine, Dentistry). This is a higher percentage than at any other public research university in the region.

Correspondingly, whereas Lower Division Undergraduates (Freshmen and Sophomores) constitute at least 50% of the overall student body at its peer public research universities, Temple's Lower Division students account for only 34% of its total. This is a lower percentage than at any other public research university in the region.

Differences in costs among academic levels and among subject areas can reach as much as a factor of 6. To afford a Research I University, it's therefore imperative to have enough Lower Division students, and those in lower-cost subject areas, to help "pay" for the graduate and professional students' education, and for faculty research. (See the Exhibits on this point.)

Temple's present student ratios (or "mixes") place undue cost pressures on the University to fulfill this mission. A considerable increase in undergraduate students, particularly in the Lower Division, is needed for Temple to continue this mission. A critical decision for the Board of Trustees will be to establish a timetable for reaching an appropriate academic level "mix" following university-wide discussion led by CFO Dorph on "Responsibility-Centered Management" during the next academic year.


Selective Investments in Research

Beyond the issue of "mix," the University, to maintain this research priority, should also redirect its research investments to specially-targeted areas, centers and faculty, while reducing its support to others. The question becomes: Which have the highest probability of future success, using a cost/benefit analysis? Which deserve institutional research support (e.g., through "release time" from teaching), based on recent track records, external findings, and probabilities of success? Which have the greatest potential benefits for society?

With an improved student "mix," with a strategy of selective excellence through targeted investments in research and graduate programs, and with innovative use of technology, Temple can maintain its "Research I" status, placed comfortably among the 100 top research universities in the nation.


The Professional Schools

The professional schools are excellent. Two are also costly. Under the leadership of Senior Vice President and Dean Malmud, the Medical School is reviewing its strategic plan to insure its continued excellence through increased productivity and forward-looking academic reforms.

The Dental School has grown strong academically and clinically. It is at the top of the nation's dental schools in the number of applications for the D.M.D. degree.

The Law School has reached national rankings in several areas, including trial advocacy, and is a leader in developing international programs while innovating in technology-based education.


Review of all Masters and Undergraduate Programs

In 1995, the University, under the leadership of Provost England, completed a 5-year review of all Doctoral programs, reducing the number to 50. Each program is obliged to maintain a high quality based on national benchmarks.

By the end of 1998, the University will have completed a multi-year process reviewing all Masters programs. Some will be strengthened; others with a low priority or demand will be terminated; and new Masters' programs will be introduced in response to student- and employer-driven market demands.

All Undergraduate programs, including the Core Curriculum, are also being reviewed to insure appropriate responsiveness to the market.

Finally, Provost England's provocative and forward-looking proposals to reorganize administratively Temple's 14 schools and colleges, will reach the Board in December 1997 for a decision.

In this era where the market and competition are driving down costs and forging increased productivity, it bears repeating that Temple will sufficiently differentiate itself and fulfill its mission only if it maintains programmatic excellence. The University cannot be "all things to all people." It cannot depend on under-cutting lower-cost, lower-quality "competitors" at the expense of its own programmatic integrity and quality. "Business as usual" won't work. And neither will "full-time faculty in every classroom."


Revised
May 22, 1997

Priority 4:

Undergraduate Admissions


[See Exhibits 16 through 17 for this section]

During its 113-year history, Temple has been a leader in providing higher educational opportunities for generations of Americans. Between 1884 and 1965, when Temple became a State-related University, Temple's "safety nets" in undergraduate admissions targeted and produced an abundance of students in four groups.


1. Enterprising students who had to work during the day, and could attend college only at night

This novel approach of Temple's Russell Conwell, also pursued by CCNY and similarly city-based colleges at the close of the 19th century to meet the "market-driven" demands and growing expectations of ambitious immigrants, has long since become commonplace among American colleges.


2. Excellent students facing invidious bars ("quotas") because of religious, ethnic, racial, gender or other bias

While discrimination exists in society and in the overall composition within sectors of public and private higher education, the controlling factor appears to be family income. The earlier explicit bars ("quotas") have been substantially eliminated at most American colleges.

3. Highly motivated but academically under-prepared students, seeking a chance to prove themselves (a variation on "open admission")

This "safety net" was a significant Temple contribution through the 1960's.

Prior to the establishment of Community Colleges in the late part of the 1960's and before Temple became State-related in 1965 and evolved into a Research I University, this "safety net" mission was important and made sense. Today, it's a financially inappropriate and programmatically questionable rationale for admissions.

Upon entrance, freshmen should be academically prepared for the rigors of a university education. Too many freshmen are not, and "remediation" is commonplace in the great majority of four-year colleges. The precise causes may differ, but families and preparatory schools bear substantial responsibility. The students involved are usually bright, committed and determined; but their language skills (reading, writing) or math skills are inadequate to meet the challenge of the University's freshmen curriculum.

For generations, Temple has been a leader in remediation. Careful analysis, however, challenges the wisdom of that policy.

The University is investing substantial and scarce resources in extensive remediation now available at Community Colleges at one-third the cost.

False expectations are created about possibly graduating from Temple without adequate earlier preparation in high school or at Community College. Indeed, with retention and graduation rates among "special admission" students at half the rates of regularly admitted students at Temple, it also makes little human sense for the University to continue this effort on a grand scale.

Furthermore, and relevant to the enrollment issues facing the University: soft enrollment from the suburbs raises the perception of an "admissions-enrollment corollary" to Gresham's Law at work: "weak" students could be driving away "good" students.

You may recall that Temple High School, disbanded in 1967 after 80 years, was a staple for decades in dealing with inadequate pre-college preparation. In later years, Temple has worked closely with individual Philadelphia schools and the District on vertical and horizontal remediation programs, with marginal success. And, Temple continued to offer extensive college preparatory programs for its own specially-admitted students.

Those "remediation" activities will be diminished by the changes in admission results described in the "Timelines for Action," and in the Provost's "Guidelines on What Preparation the University Expects of its Freshmen" (available from the Office of Undergraduate Admissions).

4. Highly-qualified students desiring quality higher education at affordable costs and at convenient locations

This represents today's major, ongoing rationale and the main pool for Temple's undergraduate admissions. It is not unlike the rationale in the mid-19th century that led to establishing "Land Grant Colleges."

This pool reaches all demographic lines. As its suburban populations and wealth have increased, Philadelphia's dominance in population, institutions and convenience have eroded. Modest family incomes, however, do not stop at the city line.

Temple cannot survive as a major university relying primarily on Philadelphia students. Temple must attract a larger percentage of suburban students. Compared with 20 years ago, many suburban students prefer to commute to nearby suburban locations rather than to travel into the city as undergraduates. Temple must attract as many as 25% more students from outside the region.

The issue for Temple is not race or gender or national origin or religion or sexual orientation. The issue is: Who can benefit and add to the University's mission? Who is likely to graduate without undue remediation? Who will be motivated and rewarded through the education offered by a loyal, outstanding, committed faculty?


Revised
May 22, 1997

Priority 5:

Responding To Students, With Simplified Systems And Responsive People


[See Exhibits 18 through 36 for this section]

Ongoing efforts are seeking to insure simplified systems and a "Hi, may I help you?" attitude with students. The goal is to develop an efficient, caring, responsive, "can do" attitude and student-friendly administration at all stages from pre-admissions to matriculation, advising, graduation, and alumni.

This is ongoing priority #1.

In a large and entrenched bureaucracy, this is a continuous, ongoing challenge for everyone who works and studies at Temple.

The Plan to Renew Temple's Mission and the "Six Clusters of Priorities" in 1995-96 triggered this latest quest. The Kearney Report is being implemented to reflect student-friendly, quality practices involving all student ("customer") contact and service.

We also ask our students how to improve our services. Earlier in Spring 1997, a Student Opinion Survey was placed on the University e-mail system, asking students to respond to a series of questions about services and college life. A total of 857 students responded - - candidly and sometimes with passion. The University received good grades for affordable tuition, accessible professors, telephone registration, small classes, breadth of course selection, security, and diversity. Low grades were given for bureaucratic red tape, academic advising, the cost of parking, and long lines.

We are acting on these suggestions. We will continue listening to students to improve and simplify their services.

For instance: a major structural ("systems") change becomes effective this month with the merger of two offices: "Student Financial Services" and "Student Financial Aid." To reasonable persons, this sound like one service. But at Temple it's been two. They've been separated for generations, to the detriment of good student relations. This single service will now be provided at one place on each campus site, including a newly-renovated (Spring 1998) location on the Main Campus.

The Registrar's central role is also changing. Over the next few months, the registration of students is being decentralized within the 14 schools and colleges, and campuses, through a combination of telephone, on-line and in-person registration, increasing the focus on student information.

The staff of Undergraduate Admissions is being strengthened and retrained in the months ahead to meet the imperatives of the competitive marketplace.

Another example of putting students first academically and socially, can be gleaned from recreation. Students were the third priority in use of recreational facilities, following higher priorities given to the College of HPERD's academic classes and to Intercollegiate Athletics, respectively. Student Recreation is now the first priority for new or existing facilities dedicated to students. Students will also set the policies and oversee all new student recreational facilities, including, for instance, who else may use them, and under what terms and conditions.


Revised
May 22, 1997

Priority 6:

"The Plan To Renew Temple's Mission" And Increased Productivity; Financial Stability And Restraint; Tuition Policies And The State's Annual Appropriations; Fund-Raising



In view of the entire context, Temple University is on sound financial ground in pursuing its mission and the priorities advanced in this report.

Standard and Poor's, in recently granting the University a bond rating of "A," described the University's financial outlook on November 30, 1996, as follows:

"The outlook has been revised to stable from negative to reflect Temple's successful implementation of university-wide cost cutting measures, program restructuring, increased enrollment management and recruitment efforts, successful fund raising efforts, and stable state support."

The Plan to Renew Temple's Mission

Two years ago, Temple embarked on a major internal restructuring as part of The Plan to Renew Temple's Mission. The Plan is a vehicle aimed at Temple's becoming the finest university of its kind by the Year 2000.

This was achieved primarily through the leadership of Executive Vice President White.

Even so, Part I of the "Plan" represents only half of Temple's full needs ($80 million) in advanced academic technology during the next several years. Once again, as a public university, Temple is dependent on the State for a substantial portion of the funds for Part II of the "Plan" as a "match" to the University's own limited resources.

The State's Annual Appropriation and Tuition Policies

As a public university, Temple has basically two funding sources: tuition, and the State's appropriation.

What is missing in Pennsylvania is a long-term commitment by the State to contribute a fairer share of the funds to public universities. Specifically, Temple's self-help to achieve its ambitious objectives can take it only so far. Temple needs additional, targeted funds from the State to continue doing its job well.

Temple people appreciate the State's support whose major function is to maintain both a high quality education and an affordable tuition. But the State's appropriation to the University has come up short for two decades.

Investment Policy, Private Fund-Raising

On another front, the University's earlier conservative Investment Policy has been criticized by some persons for not taking sufficient risks to increase the principal of Temple's modest "true" endowment of $58 million. But that "no-risk" policy performed reasonably well in "bear" periods. It has since been diversified.

In private fund-raising, a bright spot is "The Commonwealth Challenge, Plus" Campaign. Its original goal of $30 million and revised goal of $40 million have been exceeded. A total of $46 million has been raised as of May 1997, and the total is expected to reach $47.5 million by October 31. As a result, all specific goals envisioned in creating "The Commonwealth Challenge, Plus" Campaign have been achieved.

A new campaign is on the horizon. "The Campaign for Temple" is expected to dwarf all earlier fund-raising campaigns in Temple's history. It will focus on endowments for student scholarships, faculty support, and academic programmatic excellence. As indicated last year when preliminary planning was set in motion for a new campaign, an official launching of "The Campaign for Temple" is anticipated during the 1998-99 academic year.


Revised
May 22, 1997

Concluding Remarks


In approaching the tasks we have outlined, we should remember that Temple has terrific assets.

Each year, more than 29,000 students from all backgrounds choose Temple as their University. Temple is an educationally superior institution with great people and a proud history. It has an excellent faculty, incredibly motivated and resourceful students, very successful graduates, a dedicated, hard-working staff, and a worthy mission.

The current preoccupation is with critical margins, not the soul of Temple. It's with adjusting for a long-term future in a rapidly changing context.

Financially, Temple's house is in order and the focus is where it should be: on the strategic future of the University.

It's a future filled with opportunities, challenges and assorted risks. Temple has always been resilient in those situations.

Temple's actions are aimed at taking a qualitative leap forward over a multi-year period. Temple is continuously reforming, refining and improving its mission in terms of changing needs, technologies, demography and the economy of the future.

Temple is rededicating itself as a critical provider of quality higher education for the highly motivated, bright, ambitious, talented, diverse, hard-working students of all backgrounds and locations in this region, nation and world.

Critical to our future are innovation and the creative use of new technologies.

We are molding a University of the Future different than a University of the Past. Founder Russell Conwell accomplished this feat in a less complicated era 113 years ago. The challenge for everyone at Temple is to think creatively, to take chances, to devise breakthroughs similar to Conwell's. Success will be built on simple concepts satisfying the human and educational needs of tomorrow rather than those of yesteryear.

The Temple family, I believe, will succeed.




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