TULANE TALK

August 24, 2007

Good Morning:

Tomorrow, we will welcome more than 1,325 first-year and nearly 200 new transfer students to Tulane University. This class represents a great triumph, a nearly 50 percent increase in new first-time freshmen over last year and a nearly 20 percent increase in new transfers over last year.

If this time last year you would have told me that I would be announcing these kinds of enrollment numbers, I would have not believed it. Now, I consider these figures the first of many victories to come.

The students of this year’s incoming class were selected from more than 17,000 applicants. The achievement and character of these students is obvious the first time you meet them. With average SAT scores of 1940 and average ACT scores of 28, it’s small wonder that 50 percent of our incoming class were in the top 10 percent of their high school class, with the vast majority of the remainder in the top 20 percent. More than 90 incoming students graduated from high school with perfect 4.0 GPAs.

Our freshman class includes students from 44 states. Louisiana is the most represented state, followed by New York and Texas. Students of 21 countries, from Albania to the United Kingdom, are also represented in this year’s class.

This class includes students who have started their own businesses, a top 30 ranked U.S. chess player, a bagpiper, an accomplished ironworker and the No. 3 ranked female luge competitor in the country, who is currently training for the Junior Olympics. There are also three sets of twins, nine third-generation Tulanians, 37 second-generation Tulanians and 52 siblings of Tulanians.

Interestingly, the great-grandson of Randall Lee Gibson (the first president of the Board of Administrators of the Tulane Educational Fund and a U.S. Senator) is also a member of this class, as is the winner of the USA Today Public Service Award.

I could go on for pages listing all the sterling attributes of our amazing new undergraduate class. But, suffice it to say, they follow proudly in the footsteps of a long line of great Tulane students. Like those who came before them, this class represents the best of their generation and our greatest hope for the future. Please help me welcome them to their new home.

Have a great weekend,

TULANE TALK

August 10, 2007

Good Morning:

I hadn’t planned on writing you again this summer but this good news couldn’t wait. This was a historic week as the Tulane University School of Medicine welcomed the largest class in its 173-year history. Please visit this link to view some of the phenomenal news coverage this event received: http://www.wwltv.com/video/news-index.html?nvid=164650

I hope you will be as inspired as I was by the words of these bright, young students (and their new dean) who hail from around the country and world, as they tell why they chose Tulane and New Orleans for their future. Their words echo what many of us have been saying for a long time. It is heartening to see that this message is finally getting through to the media.

Our new students will soon be greeted, as will all of you, by a newly designed Tulane University website. Like Tulane, the new design is attractive, dynamic, engaging and forward-looking. Its new features include “Quick Links” that place frequently-requested links conveniently on the front page along with news and university events.

There’s also a new “Did You Know?” section that features continually changing facts about Tulane such as, Did You Know Tulane’s athletic teams are known as the Green Wave after a song written in 1920 by Earl Sparling, then editor of the Hullabaloo.

In order to make navigation easier we’ve changed menus throughout the website based on recommendations from an information architect (that’s an actual job now and a very important one). The new website launches August 18. I look forward to using it and hearing feedback on it from you.

Have a great weekend,

TULANE TALK

July 19, 2007

Good Afternoon:

I am writing today, as we close the books on fiscal year 2007, to provide you with a detailed update on the university’s financial situation. As you will read below, we have made significant progress in our financial recovery since my last update on this topic a year ago. Challenges still remain; yet the passage of time has made our situation more predictable and manageable.

Cumulative Total Losses and Recoveries: To date, our cumulative financial losses from Hurricane Katrina are nearing $600 million. This number is considerably higher than I reported last year because the process of tabulating our losses is on-going and will continue into the foreseeable future. The $600 million represents losses from property damage, business interruption, and damaged or destroyed research assets and art collections. To date, we have recovered approximately $300 million against these losses from insurance, FEMA and one-time government and foundation grants. The recovery of remaining losses is our highest financial priority for the next few years and remains our biggest challenge.

Use of Recovery Proceeds: We have used recovery proceeds to reduce debt and to fund on-going operating deficits. This year we successfully restructured all of our outstanding debt (approximately $450 million), paid off the contractors who rebuilt our campuses, and reduced our long and short-term debt. As we look to the future, additional recoveries are needed to retire $100 million of Katrina-related debt and to support projected recurring operating deficits for the next few years, which are a result of the hurricane’s on-going impact.

FY 07 Estimated Financial Results: You may remember that we had projected an operating loss (i.e., operating revenues minus operating expenses) of $31 million for this year exclusive of any insurance, FEMA or other one-time recovery dollars. As of today, it appears that the operating loss will be in the $21 to $24 million range. This improvement results from lower than anticipated operating expenses and additional unbudgeted operating revenues. This improved operating result is very encouraging and, hopefully, will be sustainable in the years ahead. Despite this operating loss, the university’s financial statements for fiscal year 2007 will reflect a positive amount of approximately $120 million. This results from the partial recovery of our catastrophic losses and, under accounting rules, we must include these one-time loss recoveries in the year we receive them.

FY 08 and Beyond: We begin this fiscal year projecting an operating deficit of $34 million, on a total operating budget of approximately $600 million. Again, we have not assumed any receipt of possible one-time revenues such as insurance or FEMA recoveries.

We continue to project an operating deficit for this and the next few years for several reasons. First, despite the increased size of our entering undergraduate class this fall, overall undergraduate and graduate student enrollment is below the projected stabilized number envisioned in a post-Katrina environment. Mostly likely, it will take another three years to build and stabilize enrollment to an optimal level consistent with the Renewal Plan. This is due to the significantly smaller classes that entered last year combined with the fact that we are graduating larger classes in the next two years while replacing them with smaller ones. Second, we continue to incur significant Katrina-related costs (e.g., mitigation, consulting, legal). Third, even though we have retired some of our Katrina-related debt, we still have long-term debt service costs higher than pre-Katrina levels. Fourth, the city’s reduced population is still having an adverse impact on some of our medical-related activities. Finally, many of the university’s normal operating costs are increasing at unusually high rates as a result of Katrina (e.g., utilities, contract labor costs and insurance).

Hopefully, the reasons for the projected annual deficits cited above will self correct in the next few years as we recover, eventually bringing our operating budget into balance. In the meantime, we anticipate having the financial flexibility to address any on-going issues without further faculty and staff reductions.

The Renewal Plan has been absolutely essential to our financial recovery. Without it, the university would be in a truly perilous situation today. This plan, combined with the incredible efforts and support of the Tulane community on behalf of the university, will continue to benefit us — academically and financially — well into the future.

In addition to the progress of our financial recovery, I also want to mention a few other successes, which are also very encouraging signs of recovery and renewal.

Fund Raising and the Endowment: We raised nearly $85 million against our goal of $75 million this year in private gifts and grants despite having a significantly smaller development staff. This was the second best fund raising year in the university’s history and positions us very well in the final year of the Promise and Distinction Campaign. To date, we have raised over $652 million toward the $700 million campaign goal.

Our endowment now exceeds $1 billion, a goal we achieved one year ahead of schedule! We reached this significant and historic milestone because of our successes in fund raising and in the management of the endowment. The income from this endowment is significantly strengthening our academic core and expediting our financial recovery — all great news for the future.

Research Funding: As a result of the outstanding work of our faculty, funded research levels remain fairly constant with pre-Katrina levels despite the smaller number of faculty. The projected research awards for FY 07 are $135 million (and counting) compared to $135 million in FY 06 and $136 million in FY 05. Our decision to create the Research Enhancement Fund has clearly helped our researchers reestablish their labs and programs with the obvious benefit of sustaining externally funded research awards and indirect cost recoveries.

Beyond the Numbers: Despite the considerable challenges we still face, I am very optimistic about Tulane’s future. Thus far, our recovery has exceeded our expectations. We are well on our way to building an institution that is more focused, distinctive and academically superior than before the storm. My optimism is based, among other signs, on the following:

– The faster than expected pace of our financial recovery
– The tremendous interest prospective students have in attending Tulane University as measured by the number of applications received, and the size and academic quality of the incoming student body
– Our success in hiring outstanding new faculty, staff and senior administrators
– The extraordinary accomplishments and dedication of our existing faculty, staff, students and administrators
– The impressive academic and financial recovery of our School of Medicine, the emerging vision and long-term plan for the School of Science and Engineering, the continued evolution of the School of Liberal Arts and the ongoing realization of our goals for a reconfigured undergraduate experience in Newcomb-Tulane College
– Our successes in fund raising and managing the endowment
– The continued passion, commitment and support of Tulane’s alumni and friends
– The visibility of and respect for the university around the country for how it has rebounded and the historic role it is playing in the city˝s recovery
– The pace of successful implementation of the Renewal Plan and its positive impact on and receptivity among the vast majority of Tulane’s stakeholders as demonstrated by the realization of the successes noted above

What remaining challenges do we have to overcome before we can conclude that our recovery is complete? We have to continue to make significant progress in all the areas cited above, particularly by working hard to eliminate our operating deficits. We have to continue to aggressively pursue recoveries from FEMA and insurance companies for our remaining catastrophic losses. We must be focused and unrelenting in achieving our academic priorities and objectives; determined to make thoughtful, courageous and forward-looking decisions to advance our progress; and dedicated to a future filled with hope and a desire to renew our university and city in a way not possible before Katrina.

Katrina forever changed Tulane, our city and each of us. For me, it has been a truly transformative experience. This is an historic moment for our university and city. I consider myself privileged to be here working with an extraordinary group of people who define themselves as Tulanians and New Orleanians. My commitment and dedication to the Tulane community, New Orleans and the state are unwavering. Together, we will continue to steer a course to a brighter and prouder future.

As always, I welcome your comments and questions about anything covered in this Tulane Talk or any other topic for that matter. I will make the rounds of the key internal and external stakeholder groups this fall to discuss last year’s accomplishments as well as this year’s priorities and objectives. However, in the meantime, do not hesitate to contact me if you have a question or comment.

TULANE TALK

May 25, 2007

Good Morning:

The celebration of Commencement 2007 is still ringing in our ears. By all accounts it was a fantastic end to a remarkable academic year of achievement for Tulane University. The national media is taking note of our accomplishments, too. CNN’s Jack Cafferty commented on air about how special the Commencement was that marked the culmination of his daughter’s educational experience at Tulane. Newsweek, NBC Nightly News and People Magazine are just a few of the national media that plan to feature various aspects of Tulane’s recovery in their upcoming coverage.

National attention like this is always welcomed but so often it fails to recognize those who are most responsible for the renewal of Tulane University – each of you. I hope you are filled with pride when you realize that your dedication has brought about the rebirth of a great American university in the greatest American city.

This renewal has not come without sacrifice. Many of you have worked long hours on your assigned duties and continue to take on tasks far removed from your original job descriptions in order to assist in our recovery. You are doing all of this while also rebuilding homes and lives. I thank you from the bottom of my heart for your dedication and loyalty to Tulane and New Orleans.

In addition, some Tulane faculty and staff will be leaving the university at the end of this academic year. I want to personally thank all of these individuals for their work on behalf of our students, the university and the broader community. We wish them success in all their future endeavors.

This will be my last regular Tulane Talk until the fall. I will, however, write occasionally to keep you abreast of any pressing matters and, like last year, I plan to send a special message in the summer that will provide you with a thorough update on our post-Katrina finances. In the meantime, thank you once again for a successful academic year.

Have a great Memorial Day weekend and an enjoyable summer,