Recap of the May 2023 Board of Trustees Meeting

We are pleased to share some of the topics, highlights, and action items discussed at the most recent meeting of the Board of Trustees held on Wednesday, May 10, 2023. We look forward to sharing with you additional and timely information on these and other initiatives in the months ahead.

Fall 2023 Enrollment Update 

Simon G. Møller, Ph.D., Provost and Vice President for Academic Affairs, gave a presentation on the current enrollment landscape, and an update regarding fall 2023 enrollment. Recruitment efforts for fall 2023 will continue throughout the summer and while net deposits are down slightly over this time last year, the discount rate and net tuition revenue remain comparable to this time last year. At present, the fall 2023 incoming class has an average GPA of 89.8 and 1212 SAT. An overwhelming majority of first-year students come from our primary market. Nearly 66% of the incoming first-year students are students of color, an increase from approximately 61% at this time last year. We remain focused on student engagement during the summer and are excited to once again offer “Parent & Family University” and “Summer at St. John’s: Explore and More” to best support our new students and their families. We are mindful that the competitive nature of higher education requires us to do all we can to minimize summer melt -- that is, limiting the loss in the number of students who have deposited to those who actually enroll.

FY24 Operating Budget

Sharon Hewitt Watkins, CPA, CGMA, Vice President for Business Affairs, Chief Financial Officer, and Treasurer, provided an overview of items pertaining to the finances of the University. The presentation included a review of the endowment, regular and special endowment draws, major capital project inflows and outflows (including the status of monetization initiatives relating to certain university assets), and the multi-year financial impact of the under-enrolled fall 2020 first-year class.

The Board discussed and accepted Management’s recommendation to approve the University’s operating budget for Fiscal Year 2024, which begins on June 1, 2023. Revenues are expected to grow by 4%, largely reflective of a tuition rate increase. The tuition rate increase is offset in part by a projected decline in enrollment, increase in financial aid, and loss of some one-time revenues received in FY23. Expenses are projected to increase by 7%, outpacing the revenue growth as the University seeks to provide salary increases for faculty, staff, and administrators, funds other inflationary cost increases, and makes investments to implement the strategic plan. 

As currently projected, the budget reflects expenses of $481 million, exceeding revenues of $461 million, leaving a budget gap of $20 million. With all COVID-related federal stimulus assistance exhausted, Management asked the Board to allow for a special endowment draw from the University’s unrestricted endowment funds of up to $20 million to close this gap. Consistent with prior fiscal years, the special draw will be reduced if and as operating revenues and/or expense savings are better than budgeted. 

Strategic Planning Update 

Christian P. Vaupel, Ed.D, Vice President for Advancement and University Relations, provided an update on behalf of the Strategic Planning Committee. The Strategic Plan is meant to prioritize the activities and identify the resources needed to support St. John’s mission and vision. The Strategic Plan focuses on five foundational Pillars that are crucial to the success and growth of the University.

Presently, the plan consists of five Pillars, 16 Goals, 40 Action Items, and approximately 140 Metrics/Measures. Dr. Vaupel and other members of the Senior Management Group shared updates on each Pillar, and presented their top metrics/measures to be focused on the upcoming academic year. The Strategic Plan Implementation Committee will continue to keep the members of the St. John’s community apprised of the plan’s progress.

Student Success and Retention Strategy Update

Sarah Jean Kelly, J.D., Vice President for Student Success and Retention Strategy, provided an update on the Division of Student Success. The Division includes what has historically been the Division of Student Affairs, along with the University Freshman Center and University Learning Commons, which are now all part of the Center for Student Success. After sharing research and survey data about college students nationally and at St. John’s, Ms. Kelly identified priorities for how the University is structuring the work and outreach of the Division that, to date, has prioritized personnel work within the Wellness areas, Career Services, and Campus Activities. These areas have a critical impact on the overall student experience.

Membership

Trustees Paul M. Carroll ’69CBA, ’71MBA, ’79APC, ’17HON and Joseph M. Mattone, Sr., Esq. ’53C, ’55L, ’94HON, concluded their terms on the Board. New Trustees Jeanmarie Grisi ’80CBA, and Mark P. Kritzman ’73CBA attended their first meeting. The Board elected Sr. Nora Gatto, D.C. and Michael X. Mattone, Esq. ‘91L, for a three-year term beginning in September 2023. The Board also renewed new three-year terms for the Board officers: William J. Janetschek ’84CBA, ’17HON, Chair; Margaret M. Keane ’81C, ’87MBA, ’19HON, Elected Vice Chair; and Very Rev. Stephen M. Grozio, C.M., Provincial Vice Chair of the Board of Trustees.

Next Meeting 

The next meeting of the Board of Trustees will be held in September 2023.