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HU making program cuts in response to 'gloomy' economy

Huntington University will suspend two academic programs, reduce its faculty by one, and cut five staff positions as it responds to what it calls "gloomy economic conditions."

The master of arts in ministry leadership program and the undergraduate major in Spanish will both be suspended in 2010, the university has announced.
Enrollment in both programs is small, HU spokesmen say.

Three currently vacant staff positions will be eliminated and the school will delay filling two other positions for up to three years.

In addition, one faculty position and two staff positions will be eliminated at the end of this academic year.

The university also plans to reduce the number of course sections or infrequently offered classes, an action that will result in a reduction in the number of adjunct instructors required to teach those classes.

The university will also reduce or eliminate some contracted services; reduce its contribution to employee retirement plans; and cut expenses in a variety of other areas ranging from groundskeeping to administrative travel.

However, Huntington University President G. Blair Dowden says, the school's 2010 budget provides for increases in strategic expenditures that will help accelerate the university's growth and build on the quality of its programs.

"Budget decisions must lead toward accomplishing the university's goals as outlined in our current strategic plan," Dowden says. "This will require some new investments in areas that will help grow enrollment and revenue. As much as possible, we will avoid general, across-the-board cuts, and instead focus on strategic budget adjustments."

Dowden announced the plan to faculty and staff members on Dec. 15.

"Early in the fall, we recognized that many issues beyond our control - such as the decrease in state scholarship funding, reduced unrestricted gift support and a smaller-than-anticipated enrollment - would impact our financial position," Dowden told employees. He added that while HU was able to balance the budget through one-time adjustments this year, 2010 would be "a different story."

Dowden said that converging economic factors had brought about to a financial "perfect storm."

The State Student Assistance Commission of Indiana (SSACI) late last summer cut student grants by 31 percent, forcing HU to expend its entire $750,000 contingency fund to make up the difference.

Volatile market conditions have led to more than half a million dollars in reduced endowment income and charitable giving.

Although HU enrolled a record-breaking class this year, total enrollment was lower than initially projected, leading to a deficit of $320,000. The university has developed more conservative enrollment estimates for next year and revised its tuition revenue projections.

"I would not characterize our situation as a crisis," Dowden says. "I am confident that our ship is sound and that we will weather this storm, and I am confident in God's providence. But if these challenges are left unaddressed, we will soon be faced with a crisis. It is vitally important, therefore, that we act now."