La Sierra University charts path toward growth

On Jan. 29, the university’s board of trustees voted a budget and funding for the remainder of this fiscal year ending June 30 and two years through 2025-26. University leadership also drafted a follow-on aspirational plan through 2028-29 for a total five-year proposed strategic document focused on La Sierra’s growth. On Jan. 30 the plan was presented by La Sierra University Interim President Richard Osborn during a campus town hall at the Zapara School of Business.

The proposed multi-year strategy aimed at supporting employees and boosting enrollment was developed during eight meetings over the past two months of a campus leadership group consisting of top administrators, vice presidents and deans of the university’s three schools and its college. The university’s fall 2023 enrollment stood at 1,614 while student retention between fall and winter quarters this school year clocked in at its highest rate in five years.

“The diligent work of the university administrative team under Richard Osborn’s guidance has been outstanding,” said Bradford C. Newton, chair of the La Sierra University Board of Trustees. “We have approved the budget and funding plan and two more years, and have high confidence in the university’s potential for growth. The inclusion of key campus leaders in this pivotal undertaking was a major factor in getting this work done. Now we may proceed with a multi-year strategy which lays a roadmap for the university’s future. We are grateful for the deep well of knowledge and insights the team brought to this process.”

Osborn noted in his town hall remarks, “It was a collaborative effort of everybody working together on this.” He formed the university leadership team nicknamed ExCo Premium and spearheaded the inclusion of campus leaders in trustee sessions, relaying outcomes of board decisions and leadership meetings to the campus community and in regular meetings with the faculty senate. “Because only three months was available to prepare the plan and the need for a long-term president is essential for restructuring, visioning, and new program creation, the plan sets the stage for the future,” Osborn said. “The search process for a new president is underway with a strong set of candidates who have applied.”

The board-approved plan for finishing the 2023-24 year calls for an immediate $1.5 million investment in marketing, student onboarding initiatives and information technology upgrades for more fully automated enrollment and registration, with key personnel additions and some salary increases. New hires will include refilling four vacant marketing positions, an alumni director’s post and an associate provost’s position, and fully funding a Diversity, Equity and Inclusion officer’s post, among others.

Proposed investments over the next two fiscal years will cover new athletics initiatives such as new sports teams and athletics scholarships increases, the beginning of university-wide salary increases, continued investments in IT and student onboarding, and a reduction in academic costs. New athletic sports in women’s flag football, women’s beach volleyball, golf, and men’s volleyball will be added in the next two years in addition to the nine teams already offered.

"Now we may proceed with a multi-year strategy which lays a roadmap for the university’s future.  -- Bradford C. Newton, Chair, La Sierra University Board of Trustees

An increased drawdown on gains from the university’s two quasi endowment funds, net income from university-owned land leases, and the sale of two university-owned, off-campus houses will fund costs for investments over the approved budget years through 2025-26, without touching the corpus of the land endowment.

The five-year strategy details how the university’s $10.2 million deficit will be reduced each year, aided by drawdowns on endowment gains to reach deficit elimination by 2027-28. The current budget challenge was created by several years of enrollment declines which led to a large budget deficit this year. Going forward, successful budget performance is contingent upon the achievement of 10% financial full-time equivalent enrollment gains annually beginning in the 2024-25 fiscal year that starts July 1.

Other annual performance indicators and conditions include increasing the student-to-teacher ratio, ongoing wage increases and increased on-campus student activities. If enrollment targets come in under 50% of any year, the plan calls for immediate adjustments at the end of the fiscal year toward balancing future budgets.

In addition, the plan calls for the creation of a higher education task force with Pacific Union College and additional collaborations with Loma Linda University toward achieving long-term academic and financial benefits.