How did you get you get this job?
I had served on CSU's board from 1989 to 1998. In 2000 I retired as CFO of a major insurance agency in Cleveland. But after just two weeks of retirement, I was recruited to be the interim holder of this job for six months. When my successor was hired, the president asked me to stay on as special assistant. Soon thereafter my previous replacement took another job elswhere. And I was hired for this job full time in early 2003. I'm still here and happy to be so. By the way, our president Michael Schwartz, came here under very similar circumstances.
What's been the tuition price history at Cleveland State?
Since 1995 we've averaged an annual increase of 5.5 percent. In the last two years, it's been zero, which was legislatively mandated. The highest single year increase was 12 percent in 2002 Today's tuition for a full-time Ohio resident undergraduate is $7,920. We have dorms, and they're used by freshmen most heavily. But our average student is age 26, and we're mainly a commuter school.
In what ways is your revenue hampered today?
First, though we have investments, we have literally no investment income to supplement tuition and state subsidies. Second, we received $75 million from the state of Ohio toward last year's annual expense budget of $200 million. We don't expect that subsidy to increase this year. And the longer-term economic conditions are dismal. Third, it's expected we'll again be barred by law from raising tuition.
On the expense side, Cleveland State's travel is embargoed. To what extent?
This year we've asked all employees to limit their travel to in-state exclusively. Next year, we'll take the destination limits away and reduce the overall travel budget by 50 percent.
What other cost-cutting measures have been initiated?
We've frozen hiring and severely curtailed paid overtime. We're reviewing all capital purchases in excess of $5,000.
Back to revenue, how close to student capacity are you?
We're not. We can serve about 2,000 additional students without increasing staff or plant. And we know we'll do better than break even on every incremental student. Our marginal cost is near zero.
So, where are you recruiting those additional students?
We've stepped up our recruiting efforts. But Cleveland's population is shrinking. So we're shifting to a regional recruiting mode. As a result, we're partnering with American Campus Communities to build and operate more dorms.
What might be better explained to state-level politicians about state universities?
First, realize our impact on the local economy is about $300 million per year. That's appreciated much more locally than it is in the state capitol, which furnished about a quarter of the money. Next, the average resident or voter or taxpayer typically views higher education as a personal good. The actual extra taxes paid by that graduate are somewhat obscure, but they are there nonetheless. So much so that a case can be made that state higher education investments are amortized in eight years, which is pretty good these days. Third, there is a spillover effect. A place-bound campus often stimulates construction of housing and retail in adjacent neighborhoods. Developers know we're not going to move.