Luther College
Luther College high school campus offers a quality education in a Christian context.
Because we are committed to providing a global perspective, students from around the world attend Luther to become part of a personal and caring community.
Campus safety and security services offered: 24-hour foot and vehicle patrols, late night transport/escort service, 24-hour emergency telephones, lighted pathways/sidewalks, controlled dormitory access (key, security card, etc)
Counseling services offered: minority student, career, personal, academic, older student, psychological, birth control, religious
Basic student services offered: nonremedial tutoring, placement service, health service, health insurance
Remedial learning services offered : reading, writing, study skills
Luther President Richard Torgerson has communicated with the college’s students, parents, faculty and staff in the past two weeks to provide them with information about Luther’s plans to respond to the economic downturn.
President Torgerson said the Luther Board of Regents and administration leaders are evaluating the economic situation, appraising its effects on Luther operations and will make prudent financial decisions that will help the college thrive during these times of financial challenges.
“I think the college has always spent wisely,” President Torgerson said at a recent meeting with Luther employees. “Now it is going to be even more critical to spend wisely as we create our responses to the turbulence in the financial markets and the broader economy.”
President Torgerson listed a number of factors connected to the worldwide economic downturn that will affect Luther’s financial situation, including decreased returns on the college’s endowment investments, economic pressures on families’ ability and willingness to pay for college education, a potential decline in major gift giving by donors, and growing unemployment in the four-state region from which Luther draws 85 percent of its students.
President Torgerson noted several factors in Luther’s economic situation that can offset those challenges. The college does not depend on a line of credit for operational funds. It has not been shut out of current credit markets, and Luther’s quasi-endowments of about $8-9 million will help buffer some of the fiscal challenges. Declines in endowment investment earnings in the current year are unlikely to affect operational endowment spending until 2010 or 2011 because that annual spending allotment is averaged on the previous 12 quarters which tends to “smooth” major market fluctuations.
In addition, Luther does not carry significant debt, specifically variable rate bond debt. Consequently, the college is not burdened by financial commitments that could greatly amplify operating budget challenges.
President Torgerson also listed several actions the college is now taking to address the economic challenges.
Luther has communicated with all current students and parents to assure them the college is taking many actions to keep the cost of a Luther education affordable and will continue to assess ways the college can assist with financial aid and through student work-study.
The college expects to delay the renovation project for Miller and Dieseth residence halls and the expansion of Baker Village student housing until economic and enrollment trends become more clear.
The 2009-10 college budget is being developed with conservative financial and enrollment projections. The college will set tuition and fees for the coming year at an earlier-than-usual date so that families will have more time to plan.
The college will carefully assess staff and faculty vacancies, replacements and changes. It will move forward cautiously with strategic plan initiatives when funding is secured and will continue to implement cost-saving measures in its operations.
Because the world economic situation is changing day-to-day, said President Torgerson, the college will continue vigilant tracking of its benchmarks – financial, operational and enrollment data – to assess the college’s stability and make adjustments. He said the college is secure, and he is confident about its short-term stability and its long-term goals.
“This community has always come together to work collectively and efficiently, with imagination and enthusiasm,” he said. “Central to all that we do is to provide the very best learning and teaching for Luther students. If we continue those traditions we can thrive. Our students, our alumni and our friends expect nothing less of Luther College.”
Luther College • 700 College Drive Decorah, Iowa 52101 USA
Phone: 563-387-2000 or 800-4 LUTHER (800-458-8437)
Filed Under: Colleges
