Higher education is undergoing a period of unprecedented change. The high school population is declining nationally and small colleges are closing at a rate of one each month, usually due to declining enrollment and financial pressures. Despite these challenges, Moravian University has positioned itself as a leader in innovation and adaptability.
In this Q&A, The Comenian asked President Bryon Grigsby and Vice President of Enrollment and Marketing Scott Dams how Moravian is navigating these roadblocks in higher education.
This interview has been edited for clarity.
Many small institutions like Moravian have closed in recent years. How has the university managed to avoid their fate?
Grigsby: Moravian has actually remained really strong through this period of time. Moravian was more at risk after 2008 when its enrollment dipped to under 1100 students, and it was dealing with a $5M deficit in 2012 on a $35M operating budget. Today, Moravian has nearly 3,000 students, more diverse revenue sources, and its endowment has grown to $170M, which puts it in the top 20% of endowments in the country.
Moravian has done this by focusing on being relevant. [John Amos] Comenius states that education should concern itself with that which concerns society. Our curriculum focuses on issues that society needs – teachers, nurses, business leaders, musicians, and artists – people who are creators. We also are a master’s comprehensive university, and many students come to Moravian to enroll in our graduate programs after undergraduate. These graduate programs are in professional areas, such as Physical Therapy, Occupational Therapy, etc. These are programs our health care systems and our society desperately need.
We have also invested in our students, providing them with technology, career and counseling services, international travel, community engagement, and cutting-edge faculty who bring their students into their research. Lots of other colleges are cutting these services and faculty as budgets get tighter.
How large is Moravian’s deficit, and what plans are in place to address it?
Grigsby: The projected deficit is around $1M, which we can manage with budgetary controls on our 70+M operating budget. Almost every college in the nation is running a structural deficit from the last two years of COVID-19 reduced enrollments. Fortunately, ours is manageable without significant cuts to faculty or staff lines and without hurting the student experience.
This year, faculty and staff cost of living raises were delayed until January, and retirement contributions have been suspended. What are the key reasons behind these measures, and how do you plan to balance financial sustainability with supporting university employees?
Grigsby: This year and last year, faculty and staff salary increases occurred on Jan. 1 rather than occurring in October and being back paid. This will most likely continue as it is how most companies work with their fiscal budget. The faculty and staff did receive a 2.75% salary increase both this year and last which was not common throughout higher education.
The retirement contributions were reduced on average from 8% to 6%, with people making over $100K reduced to 4% and people making under $50K remaining at 8%. The key reason for this reduction is that we did not want to close programs and terminate faculty and staff when we could see enrollment was increasing. We also wanted to give people a salary increase, but we couldn’t give a salary increase, keep everyone employed, and keep the same retirement contribution.
We thought it was short-sighted to lay off faculty and staff and close programs because our enrollment numbers were strong. Most other colleges aren’t seeing the enrollment growth we are and are closing entire degree programs and terminating faculty and staff. The board has said as the financial budget improves, the first item they will replace is the retirement back to 8%.
In an effort to attract students, Moravian has introduced new graduate programs and invested in projects like the new HUB. However, these initiatives also require a significant investment. When do you believe these investments will pay off?
Grigsby: Both the Sports Medicine and Rehabilitation Science and the investment in nursing and public health with the creation of the Sally are providing millions of dollars in the operating budget. The problem is that when COVID-19 hit, it reduced two of our undergraduate classes. Without these graduate programs already in place, we would have been looking at 10-12M budget deficits post-COVID-19.
We knew from consultants about our campus that two great impingement points were athletic space and soft space for students. Over the past four to five years, we have fixed that by turfing and lighting Mak Field, re-turfing the football field, redoing the track, and renovating the ARC to handle more use and teams. The HUB expansion solves the soft space issue for students. These investments are paying off as we are bringing in the largest classes ever, and the next class looks to be no different.
That said, we have to continue to innovate and look for new opportunities. Recently, the board approved the School of Professional Studies and Innovation to reach the 40M working adults who have some college and no degree or those who are looking for a professional graduate degree. This new School should produce a healthy surplus within another 18-24 months.
Dams: The strategic investments made over the last 10 years have certainly paid off. It’s easy for that fact to get lost in translation when speaking about budgets and deficits. As Bryon mentioned, much of the deficit can be traced back to COVID-19 and its lingering effects. The most important metric when measuring the ROI [return on investment] on our strategic investments is that MORAVIAN IS THE FASTEST GROWING COLLEGE IN THE REGION. And it’s not even close!
Given Moravian’s success in navigating the challenges of higher education, have other institutions or organizations invited the university to share its strategies? If so, can you elaborate on those experiences and what Moravian’s story might offer to the broader higher education community?
Grigsby: A number of institutions have taken our Elevate program and adopted it at their institutions. I am also invited to speak nationally at the Council of Independent Colleges, Apple Distinguished Schools, Association of Independent Colleges and Universities, and the Arizona State University and Greater Silicon Valley conferences on how we have developed a successful, relevant institution that students want to attend.
Enrollment remains a challenge for many institutions. How is Moravian working to attract a diverse and engaged student body in a time when competition for students is more intense than ever?
Grigsby: First, we will continue to offer students a professionally relevant curriculum that students want and that engages students experientially. We are part of the New American Colleges and Universities, and this organization helps us focus on a relevant curriculum that is both global and civically engaged.
Second, we continue to get national and international recognition, which is helping to drive our brand. Our UNESCO World Heritage recognition places us in a very elite few institutions worldwide. Our athletic teams continue to win at the NCAA, and we find more and more student interest from locations where national championships occur. We are starting to put recruiters on the ground in areas of population growth, such as Florida and Texas. Our students and faculty are presenting at more national conferences, securing federal grants, and publishing cutting-edge research. All these initiatives further our brand in the national and international markets.
Dams: Moravian continues to invest in the necessary personnel and infrastructure in its continued commitment to support first-generation and historically underrepresented students. Last year, Moravian became an associate member of the Hispanic Association of Colleges and Universities, with the goal of becoming a Hispanic-Serving-Institution in the not-too-distant future. This continues our mission of providing access to education to all and also helps us reach communities that are projected to grow in population over the next decade.
As small schools face increasing pressures to innovate or consolidate, what do you see as Moravian’s greatest strengths that will ensure its continued success?
Grigsby: Moravian’s success is what Comenius articulated in the 17th Century: Education is worthy of all. Moravian has a long history of taking risks on students who others often overlook. From women to first-generation students our DNA is about access. The second part is relevance. Our curriculum has to be relevant to the needs of society. Just like we don’t exclude certain students, we don’t exclude subject matters that our society needs. Education should be about educating all, both students and subjects. We need nurses, teachers, business leaders, graduate students, etc. These are the strengths that helped a small school in 1742 to be known throughout the colonies, and it is the same strengths that continue to help us today.
Do you think Moravian will ever merge with a local LVIAC school?
Grigsby: The only institution that would make sense for Moravian to consider would be Lehigh. We are collaborating in a variety of new ways with Lehigh, but both are very strong schools in their own sectors. Moravian is a strong regional master’s comprehensive university, and Lehigh is a strong research university. These are two different missions, but they can help each other by further collaboration.
What are your top priorities for Moravian over the next 5-10 years to ensure its stability and growth in the higher education landscape?
Grigsby: We need to stabilize undergraduate enrollment around 2000-2500 students and renovate or rebuild some of our student housing. We need to continue to build relevant programs on the undergraduate and graduate levels, including delivery systems that may be different from term-based programming. We need to embrace AI and figure out how to best use it for our students and lower costs. We need to be the United States leader in UNESCO World Heritage. We need to finish off the $75M Lighting the Way campaign by closing it out at $100M, and we need to start the next capital campaign to be completed within the next 10 years. The endowment in 10 years will hopefully be closing in on $300M. All of these items will continue to put Moravian on a stable financial path.
Is there anything else you would like to add?
Grigsby: One big benefit we have is that we are located in a vibrant, safe, urban environment, so we can rely on many of the resources found in a city (healthcare, transportation, activities, restaurants, etc). We are fortunate to call Bethlehem home. It also allows us to be commuter-friendly, thereby helping students keep down education costs by living at home. Many of the small colleges you see closing are in very rural areas where commuters are not common and they are often 1000 students or less with no endowment. These items are not true for Moravian. Lastly, I believe if we can achieve Hispanic-Serving-Institution, we not only help our institution, we also reflect the Lehigh Valley Community we serve most directly.
