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January 18, 2007

President provides third update on issues of importance to the university

To: All faculty, staff, students, alumni, trustees, and friends of the university
From: Gregory L. Eastwood, M.D., Interim President

Dear Friends,

This is the third in a series of letters to you that are intended to keep you informed about the important issues at Case Western Reserve University. I am very optimistic about our university. To show you how positive I am about our present and future, let me quote from my letter that appeared earlier this week in Crain's Cleveland Business newspaper.

"We have corrected our financial difficulties, have begun to restore the confidence of faculty, staff, alumni, and friends, and have attracted an outstanding new leader, President-elect Barbara Snyder, who will begin July 1, 2007. Extraordinary deans have been appointed in three of the four colleges in which there have been recent transitions, and we have begun the search for the permanent dean of the School of Medicine, which is being led by a remarkably capable interim dean. Earlier this week, we announced the appointment of Bruce Loessin, a widely respected citizen of this community, as our new Senior Vice President for University Relations and Development. Last spring, we repaired relations with the Case Alumni Association, which have remained good. In recent months, philanthropy has increased, an already robust research enterprise is growing, and, from my experience at Parents' Weekend this fall, students and their parents express delight with the experience our university provides. And we are moving forward vigorously on several capital projects: the Mandel Center Building is under construction; the new Alumni House will open next fall; the University Arts and Retail District is under contract with a local developer; we will dedicate the Inamori Center in May; and the West Quad, the site of the former Mt. Sinai Hospital, is being planned. Soon, we even will address the dyspepsia associated with the "Case" brand name that has alienated so many of our alumni. Our best days are ahead, and ahead is pretty soon."

Barbara Snyder will be the new president of Case Western Reserve University

On December 15, 2006, we gave ourselves and the community an early holiday present: the announcement that Barbara Snyder, current provost at Ohio State University, will be our next president, starting July 1, 2007. In my view, this search was exemplary. It began last summer with a great deal of thought, solicitation of input, and planning on the part of the Board of Trustees and, in particular, the co-chairs of the search committee, Board Chair Frank Linsalata and Vice Chair Joie Gregor. It proceeded over the summer and fall with numerous open fora on campus, in the Cleveland area, and around the country. (Board representatives even met with alumni in Tokyo.) Several hundred candidates were considered, and about a dozen received careful examination. The search process concluded, ahead of schedule (remarkable for academia), with the appointment of an extraordinarily capable person, Barbara Snyder, who has all the experiential and personal qualities we were seeking. Barbara has asked that I oversee the transition over the next six months. During that time we will introduce her to many of you, and she will become familiar with the people and important issues inside and outside the university.

Other Recent Appointments

December 21, 2006: Mohan Reddy appointed dean of the Weatherhead School of Management, effective January 1, 2007.

December 22, 2006: Cyrus Taylor appointed dean of the College of Arts and Sciences, effective January 1, 2007.

January 8, 2007: Bruce Loessin appointed Senior Vice President for University Relations and Development, effective January 16, 2007.

January 9, 2007: Norman Tien appointed dean of the Case School of Engineering, effective February 1, 2007.

Financial Condition

As of the end of November 2006, we are forecasting a deficit of about $14 million for fiscal year 2007 (ending June 30, 2007), as compared to the original budgeted deficit of $10.5 million. This is on a total operating budget of about $830 million and includes a $5 million contingency that is part of the original budget. Remember that these forecast figures are calculated periodically throughout the fiscal year to assess where the university is in relation to budgeted fiscal goals but are not necessarily predictive of the final result. The second quarterly forecast for the fiscal year as of December 31 is being prepared, which should provide a mid-year assessment of the budget. Overall tuition revenue is lower than budget due to a drop in professional and graduate enrollment. Indirect cost recovery income from research grants is running below budget. However, increased philanthropic giving toward the end of the calendar year made it ahead of budget, and cost savings by the university in general, due to refinancing of debt and lower utility costs, will improve the financial picture.

The "Case" Brand

The Branding Task Group (BTG), which has been re-examining the university's logo, wordmark, and nomenclature, with the help of the marketing communications firm Lipman Hearne, is expected to have initial recommendations by the end of this month and a final report to the Board of Trustees at its February 23-24 meeting. At the October 20-21, 2006, Board meeting the BTG reminded us that the formal name of the university has not changed; it remains Case Western Reserve University.

More Good News…

Arden L. Bement, Jr., director of the National Science Foundation helped us dedicate the Center for Layered Polymeric Systems, or CLiPS, the university's first ever National Science Foundation (NSF) Science and Technology Center, based in the macromolecular science and engineering department at the Case School of Engineering. The Center will receive about $19 million from the NSF over the first five years. The lifetime of a center is usually 10 years with total funding of around $40 million.

A $1 million grant from the Fred A. Lennon Charitable Trust will expand our work in the nationally renowned materials characterization facility. Previously known as the Center for Surface Analysis of Materials, the center will now bear the name of a longtime Case School of Engineering corporate partner, the Swagelok Company of Solon.

A gift from Case Western Reserve University trustee and Cleveland business leader Joseph P. Keithley and his wife, Nancy, to the Case School of Engineering will help us recruit the best electrical engineering and computer science students from around the world.

Sincerely,
Gregory L. Eastwood, M.D.