CHAT TRANSCRIPT
Boston University President Robert A. Brown
October 16, 2008
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Robert_A__Brown: HI this Bob Brown. I am looking forward to chatting today.
toph: how does the hiring freeze affect future career growth within B.U.?
Robert_A__Brown: By freezing new hiring we are being prudent to protect our employees and students against the potential impacts of the economic downturn. From my perspective, we are creating career paths for our employees.
RoyG: President Brown, do your support efforts by some in Congress to require universities to spend a portion of their endowments each year?
Robert_A__Brown: Great question. I don't support such a blunt approach to overseeing the spending of institutions. The universities I know have prudent spending policies that reflect the long-term nature of endowments and the need for stable spending patterns in both good and bad economies. This year will be an interesting example where we will be distributing funds in excess of the growth of our endowment.
Jeff: How is BU's endowment at risk, given the downturn in investment values and risk of default by major depository institutions?
Robert_A__Brown: Just as other institutions, our endowment is impacted by the drops in the capital markets. In the last fiscal year (ending June 30) we performed well, compared to indices and other institutions, in what was a very poor market. Hopefully our managers will continue to do well relative to others, but we will not be immune to the drop in value. We have not been affected financially by the distress of any particular financial institution.
DeeDee: Hi President Brown. I understand how the hiring freeze protects students, with the potential for opening up more financial assistance. But how exactly does it create career paths for employees? Do you mean if you aren't hiring from outside, you are promoting from within?
Robert_A__Brown: By protecting our employees with prudent financial management we are working to give them long-term careers within the university and yes, opportunities for promotions at BU.
BU_alum: What is BU doing to prepare its graduates for the unstable economy? In particular, what, if anything, is the School of Management doing to create business people who will fix this mess
Robert_A__Brown: Any first-rate business school is focused on preparing its graduates for an ever-changing world and for the continuing education and personal growth they will need to deal with change throughout their careers. Wow, are we seeing the need for this kind of education now. Our graduates also need to understand the complexity of the world today and how difficult it is to assess risk in a host of ways.
greg2d: Don't you think the 700 billion could have been spent more intelligently if it was focused more on provider more money for research and development - to innovate our wait out of the tough economic time
Robert_A__Brown: Although I wish I could say otherwise, the most important issue facing the economies of the world today is to get the credit market recapitalized and functioning again. So I have to agree, in general, with the deployment of the money.
badger: President Brown: What efforts are underway to increase BU's endowment?
Robert_A__Brown: The two major approaches: effective investment and prudent spending policies for our present funds so that the endowment grows over time, and fund-raising from alumni, friends, and foundations. We have had good success in the last several years with both approaches.
goredsox: given the financial crisis, are you worried that fewer families will able to afford high-priced private colleges like BU next year, and will choose less expensive public colleges instead? do you expect financial aid demand to increase?
Robert_A__Brown: I worry a lot about access to Boston University of qualified students, especially in the present economic environment. The major reason behind our hiring freeze was to anticipate the demand for more financial aid under our current need-based financial aid policies from both our existing students and new students next fall.
BU_alum: Do you also anticipate a drop in applications, or as is the case with tough economic times, an increase in applications?
Robert_A__Brown: We don't anticipate a decrease in undergraduate applications; students only graduate from high school once. Typically applications to graduate programs actually go up in a recession. I do worry about the financial need of the applying students.
earl2: Why does it cost nearly $50,000 a year to attend BU? Where, roughly, does all of that money go?
Robert_A__Brown: The operation of BU is driven by tuition and fees with over 65% of budget coming from these revenues. Because our endowment is small relative to the scale of the University, we cannot rely on income from the endowment to play a significant role. The majority of our expenses is for salaries and benefits of our faculty and staff, as well as financial aid for our students.
badger: Hi President Brown: I'm confused about the BU Scholars program announced in the Globe recently. Is it a reduction in scholarships or an expansion? Cityguy
Robert_A__Brown: The revision of the Boston Scholars Program will bring more students to BU by giving funding to students both as merit based scholarships and by meeting the full financial need of other students without loans. Although we expect the total number of students receiving aid to be significantly higher than in recent years, the number of totally merit-based awards will be slightly lower.
zztop: Thanks for participating in this... Why is the ratio of staff to faculty so high (too many staff) at most universities? Should universities be doing a better job of directing money toward core functions, such as teaching and research? Do we really need a "deputy assistant director of housing for buildings over 35 feet on tuesdays"?
Robert_A__Brown: First, operating a major research university with an annual budget of almost $ 2 billion dollars in complicated. We run a residential system with over 12,000 occupants and serve something like 30,000 meals per day!
Robert_A__Brown: You may find it hard to believe but we carefully scrutinize each and every hire; in fall all new positions are traditionally approved only at the most senior levels of the university.
Robert_A__Brown: With this said, if you look at our strategic plan you will see that we are putting new resources into increasing the number of faculty in key schools/colleges for exactly the reason you support.
wat: One might argue that someone would be better off investing $200K+ elsewhere rather than attending a middle of the pack ranked university. One's credentials certainly would presumably benefit from a top 20, but is the price of education at $50K vastly different and better than a state school or other schools that cost considerably less?
Robert_A__Brown: You can take that position, but be sure you define the middle of the pack correctly. There are thousands of universities and colleges in the United States and even more worldwide. Anybody in the top 100 is VERY good.
Robert_A__Brown: The only way to be convinced of the value to go and visit. Sit in classes, talk about how an undergraduate program is organized, and meet faculty and students. These institutions are different, I guarantee you.
soccerfan10__NoChanceToBeatLex_: I actually was a student who really wanted to go to BU's School Of Management, however, I needed financial aid, so I was forced to look elsewhere (now at Emory University). BU has been aggressive in building onto their campus, as I remember there is a massive new building for sophomore dorms. Is it really necessary for such a well-renowned university to focus its expenses on expansion, instead of on its students and academics?
Robert_A__Brown: Interestingly, Boston University has not been expanding (in terms of the size of our undergraduate class) for a number of year. We have had a strategic goal to transform ourselves into a residential university in the heart of the city and with the opening next summer of the second high-rise residence we will be able to house almost 85% of UG's on campus. It is always a trade-off about where to put our resources, but creating a residential campus has been a very good strategy for us.
al: I understand the success of Athletics at BU, but what is being done to get more people to games; espe
Robert_A__Brown: Athletics is humming at BU, just look at the success of all our teams. We are moving more basketball games to Agganis Arena this year and will do our best to get better turn-outs from alumni and students.
bu_grad: President Brown, I graduated from CAS this past May and am currently applying to law school. Do you think the severe economic downturn will affect my ability to secure financing for this expensive undertaking through student loans?
Robert_A__Brown: Hopefully, the credit markets will return and all the traditional student loan programs will be back by the spring. I would suggest getting educated on the options now.
bizguy: Given that the number of hi school students is expected to drop in the next 5-10 years, what is bu doing to maintain its popularity among top students?
Robert_A__Brown: The demographic downturn you are referring to will be about 10% from the peak. Last year BU received over 40,000 applicants fro an incoming class of slightly over 4000 students, so the effect will not be large on us. With this said, we keep investing in the quality of our programs and the campus to keep attracting new students.
soccerfan10__NoChanceToBeatLex_: The average GPA at BU sits at around a 3.1 (grade deflation?), while the average GPAs at surrounding schools (Harvard, Tufts, BC) are higher. Don't you think this is unfair for BU students who are hoping to succeed in such a competitive job market?
Robert_A__Brown: There is no grade deflation at BU, but there is no grade inflation either; as other institutions worry about. Recruiters and graduate schools are smarter than you give them credit; they know how to normalize gpa's against the institutional averages.
Bob: Do you have programs to assist people in mid career choose alternative education options? A sort of adviser to help get started in the process?
Robert_A__Brown: Sorry to keep you waiting. We have a host of programs for mid-career learners offered through the Metropolitan College. If you contact the Dean's office at MET they can help you get assistance.
Allstonian: I am curious: as a native Allstonian, I was quite happy when, several years ago, BU agreed with the city to try to limit the number of students flooding into Allston. To your credit, you did follow through with the building of several new Dorms. Will the recent economic troubles affect this promise made by your Institution? Thank you.
Robert_A__Brown: I appreciate your support. The second if these residences is the one you see on the skyline. I don't foresee the economy affecting our timing for moving forward with building the residential campus. As I said above, we are getting close to meeting all of our demand.
BU_alum: For a long time, alumni seem to have been reluctant to donate to BU (because of certain policies or administration), but recently that is turning around. As a young alumni, I am interested in how alumni will be incorporated into the long-term planning of the university? And how they will be encouraged to give back?
Robert_A__Brown: Welcome back! If you go to the alumni website http://www.bu.edu/alumni/ you will see many ways you can participate. Reunion Weekend is in two weeks and there will be several forums for discussion about how we can best engage our alumni.
runner2: The BU bridge area is a mess; can BU do anything to relieve congestion, etc.?
Robert_A__Brown: As you may have heard (there was an article in the Globe in spring 2007) we have been working with the city and state for almost two years to develop a plan for automobile and foot traffic to clean up the concrete wasteland at the bridge. The plan is moving ahead with a large number of presentations and discussions. Hopefully it will happen in my lifetime!
broomball: What is BU doing to catch the wave or sustainable economics and ''green jobs'' that both presidential candidates are talking about?
Robert_A__Brown: We have very good undergraduate programs focused on sustainability in departments in the College of Arts and Science, as well as subjects that focus on important related topics in management and engineering. I think our graduates will be well positioned.
BU_Alum_2: President Brown - I graduated from CBS then MET. Is there a possibility of football returning to this great University? A Fall tradition that is afforded by other schools like Boston College and Northeastern University.
Robert_A__Brown: It is not very likely to come back. Boston University is a very unique urban research university and football never played much roll in the life of our students or alumni. People miss it because it is gone, but they did not come out to games when it was here. Please come to our basketball games and show your support!
HigherEd_Mom: As a parent of pre-college age children, how should I best think about issues that affect my financial planning? For example, I have the opportunity of looking at both public and private colleges, but am not sure how/if the quality of education significantly differs.
Robert_A__Brown: Sorry to keep you waiting. I think the only way for you and your children to understand quality is to visit universities and delve into the details of academic programs, the student residential experience and the options open at each university. I believe there are large differences in the quality of academic programs, faculty, and student bodies, but you will have to find this out for yourself. Higher education is one of the largest investments we make in our children and our future. It is worth the effort.
Robert_A__Brown: I am logging off. I enjoyed the session.
Robert_A__Brown: Bob Brown
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