President's Report 2008
- Message from the President
- Loyola's Vital Signs
Operations, Expenditures, Tuition-Finances Aid, Endowment Value and Returns
Message from the President
It is my pleasure to provide you with the Loyola University Chicago President's Report for the year ending June 30, 2008. This fall, our undergraduate enrollment reached a record total of 15,670, which includes 2,176 freshmen and 615 transfer students. This year, over 4,000 of our students live on campus in University residence halls. Loyola is now the largest Jesuit, Catholic university in the nation, and, having reached enrollment capacity, the focus now is on maintaining our enrollments while improving the academic credentials of our student body.
This past year we enrolled four Fulbright Scholars, as well as a record number of students applying for research stipends or participating in research programs. More than 700 students are enrolled in our new School of Communication, which will open its doors on the Water Tower Campus in January.
In August we also welcomed 50 new full-time faculty members, including five who will hold newly endowed chairs. While our finances and enrollment levels are strong, there are always new opportunities and challenges ahead. One significant challenge, particularly during this current national economic crisis, is to keep tuition affordable and our programs accessible.
This year, the University awarded scholarships and grants totaling $101 million, as compared with $92 million last year. Approximately 95 percent of this financial aid was funded internally by the University. Of the $101 million awarded in fiscal year 2008, 82 percent was awarded to full-time undergraduate students for whom institutional resources are the principal source of financial aid. Our need for externally funded scholarships and grants is growing at a time when federal and state support remains constant. The best way to ensure our ability to provide all students with an affordable education is to grow our endowment resources with the help of philanthropic support. The continued support provided by our loyal alumni and friends, and by corporations and foundations, has allowed Loyola to remain on the path toward physical and academic revitalization.
I am delighted to inform you that total contributions for fiscal year 2008 for Loyola University Chicago and Loyola Medicine were an all-time high of $44.3 million—a $7 million increase over last year—with 10,919 alumni participating and a total of 15,380 donors overall. We are proud of the growth of our Damen Society membership with 2,412 individuals making gifts to the University of $1,000 or more—a 15 percent increase over last year and another all-time high.
On September 20 the University announced its most ambitious undertaking ever—Partner: The Campaign for the Future of Loyola. The campaign's goal is $500 million, and we have already raised more than $278 million for the University and Health System. When completed, the campaign will provide scholarship support, faculty programming, research monies, and new and improved facilities. We are off to a great start and very much appreciate our many partners who have chosen to invest in the future of Loyola.
During the past fiscal year, the University generated an operating surplus of $37.7 million. As in years past, we have reinvested this surplus by creating or augmenting endowments and capital improvements. The University opened the new state-of-the-art Richard J. Klarchek Information Commons on the Lake Shore Campus in January. After investing $139 million in capital assets in fiscal year 2008, the University continues to plan for future capital projects to meet the needs of our students as well as our faculty and staff.
As you know, the investment market was quite unstable in the past year, and the University recorded a loss of 5 percent of its endowment value. This decline was largely offset by gifts, which maintained the value of the endowment fund approximately even with the prior year. We have confidence in our investment strategies and continue to look toward long-term growth. The market decline substantially offset our strong operational performance and resulted in a $4.4 million, or .6 percent, increase in net assets. The University's strong and stable financial condition again earned a credit rating upgrade. In fiscal year 2008, Standard & Poor's recognized the financial strength of Loyola with a credit rating upgrade to an A from an A- because of the University's strong financial performance over the last several years. This follows a similar upgrade from Moody's Investors Service in the prior year.
While this report focuses on our last fiscal year, the current economic crisis is serious and demands a vigilant eye and fiscal restraint. The challenges of heavy debt and credit tightening affect our entire community, and we are cognizant of the fact that the biggest impact from our national economic woes is on our students and their families. Thanks to conservative budgeting, strong contingency planning, and proactive controls, Loyola's financial condition remains stable and healthy. That said, the current financial setbacks are serious, and we will constantly assess our financial standing and will plan cautiously to meet the needs of our students and our entire community. While we do not expect a significant impact to our current budget, we will create various contingency budgets for fiscal year 2010, including no-growth and reduced-spending options, as well as a range of small tuition increases.
I hope you find this report informative. The continued fiscal health of the University is fortified by the generous assistance received from our many supporters—faithful alumni, faculty, staff, students, parents, and friends of Loyola, including our corporate and foundation partners. We greatly appreciate your partnership in our efforts to educate men and women to lead extraordinary lives. We look forward to seeing you at events throughout the year and wish you and your family a blessed Thanksgiving and Christmas season.
Michael J. Garanzini, S.J.
Date posted: January 20, 2009