REPORT TO THE FACULTY SENATE
MAY 10, 2011
The 2010-2011 academic year has been one of impressive achievements.
Our core sponsored research continued at a very high level. In fiscal year 2010, total sponsored research support grew 18 percent, excluding additional ARRA funding, and for the first time in our history exceeded $400 million. Through March, 31, 2011, the first nine months of this academic year, $283 million in research funding was generated.
Normalized for faculty size, this meant that in FY09, the most recent year for which we have data, the University of Rochester ranked eighth nationally in federal research funding.
A significant measure of University progress involves undergraduate applications to the College, which last year reached a record of 12,804 applications. This year the College received 13,850 applicants for the Class of 2015, and anticipates enrolling a class with a 10-point or more increase in average combined SAT-Math and SAT-Critical Reading scores. The entering class will be the most selective in the University's history as well as the most diverse in its ethnic, racial, linguistic, and geographic composition. More than 60 percent of the students are from outside New York, with more than half from beyond the Northeastern U.S., including approximately 15 percent from abroad.
We continue to solidify our position as the region's leading employer, with total full time equivalent jobs growing to 20,128 as of March 31, 2011, a year-to-year gain of 465 new jobs, making us the sixth largest private sector employer in New York State. This was the first period in which we crossed the 20,000 FTE job threshold.
The Commission on Independent Colleges and Universities estimated in January 2011 that the University of Rochester was responsible for direct and indirect employment of 35,805 individuals and a total economic impact of $4.11 billion in New York State.
To put this in different terms, the first decade of the 21st century saw a fundamental transformation in the Rochester economy. During that decade the greater Rochester area lost 43,000 manufacturing jobs. The University of Rochester, in contrast, increased employment by approximately 50 percent, having begun the 2000 decade with 13,140 jobs.
We started this academic year with the dedication of the new Wilson Commons food court, which, despite the vastly improve culinary quality, students, undaunted as always, continue to call The Pit.
In December 2010, the University of Rochester and the George Eastman House International Museum of Photography and Film, considered to be among the world's preeminent museums of imaging, entered into an alliance to pursue new initiatives in research and education focusing on the Museum's photography and motion-picture collections.
Between December 6 and 12, 2010, we celebrated the completion of the $47 million Eastman Theatre Renovation and Expansion project with a six-day Festival Week.
On February 20, 2011, Renée Fleming returned to her alma mater for a gala dedicatory concert to celebrate the new Eastman Theatre. The occasion also marked the creation of the Renée Fleming Endowed Scholarship Fund, which will provide support for students majoring in voice.
A few days later New York State accredited the College of Arts, Sciences and Engineering's new undergraduate business major.
On March 5, 2011, Strong Memorial Hospital launched its new $78 million Electronic Health Records (EHR) system, the single largest IT project in University history, with the initial rollout to inpatient units, emergency departments, pharmacies, and outpatient oncology. eRecord replaces several disparate information systems and creates a single, integrated EHR shared by the University's entire medical enterprise, which gives all caregivers a comprehensive view of a patient's medical information. This ultimately will improve patient care by streamlining workflows and eliminating duplicate testing and transcribing. The ultimate goal is one patient, one record, one system. Highland Hospital will launch eRecord on June 11, 2011, and ambulatory practices are scheduled to integrate the system by summer 2012.
On March 15, 2011, Ed Hajim and I presided at the announcement that the University Board had approved the construction of a $24 million new home for the Warner School of Education. The new building will be named the Raymond F. LeChase Hall in recognition of the lead gift made by Raymond's son, University Trustee Wayne LeChase, and Wayne's wife, Beverly.
In March 2011, the Simon School initiated a new master's program in New York City, concentrating on Finance.
On May 19, 2011, the climax of this year's program will be a major conference also in New York City on Emerging Risks to America's Financial Stability, at which Peter G. Peterson, former United States Secretary of Commerce, will be honored as the Simon School's inaugural Executive of the Year.
In March 2011, former School of Nursing Dean Loretta Ford was selected for the National Women's Hall of Fame in part for her work developing the unification model of practice, education and research.
Later in March 2011, Trustee Tom Richards was elected Mayor of Rochester.
On April 8, 2011, the $60 million Clinical and Translational Science Building was dedicated in a ceremony which included as speakers Lieutenant Governor Bob Duffy and Assembly Speaker Sheldon Silver.
Brad Berk, Medical Center Chief Executive Officer, publically announced that the new 200,000 square foot building would be known as the Saunders Research Building in honor of Philip Saunders whom Brad earlier that week announced had made a $10 million gift to the Medical Center.
The Memorial Art Gallery, thanks to underwriting from the EDMAC Foundation and long-time Gallery patron Joan Feinbloom, has commissioned site-specific works by noted American sculptors Jackie Ferrara and Wendell Castle for its Centennial Sculpture Park, scheduled to open in 2013.
This year our Laboratory for Laser Energetics celebrates its 40th anniversary. The Laser Lab currently is participating with Lawrence Livermore and other national labs in one of the 21st century's most critical energy experiments, the attempt to achieve nuclear fusion ignition in the laboratory, popularly known as NIF. If NIF succeeds, this has the potential to be as one scientist recently put it, “a holy cow game changer.” Laser fusion, unlike nuclear power plants, is safe, cannot melt down, is carbon free, nonradioactive, and potentially will provide an inexhaustible source of energy.
This was a year of outstanding faculty achievement. In October 2010, Esther Conwell, a Professor of Chemistry with a joint appointment in Physics, became the first member of the University to be named by the President of the United States as a recipient of the National Medal of Science.
In February 2011, Ching Tang, the Doris Johns Cherry Professor of Chemical Engineering in the Hajim School of Engineering and Applied Sciences, was named as the recipient of Israel's Wolf Prize in Chemistry. One in three Wolf Prize recipients in physics, chemistry, and medicine has gone on to win the Nobel Prize.
Hajim School Dean Robert Clark was elected a Fellow of the American Association for the Advancement of Science; Michael K. Tanenhaus, the Beverly Petterson Bishop '46 (MA) and Charles W. Bishop, Ph.D. '46 Professor in Brain and Cognitive Sciences, was elected a 2011 Fellow of the American Academy of Arts and Sciences; SLIDE 26
Lynne Maquat, the J. Lowell Orbison Chair and Professor of Biochemistry and Biophysics, was elected a 2011 Fellow of the National Academy of Sciences; and Duncan Moore, Vice Provost for Entrepreneurship, was named a Fellow of the American Institute for Medical and Biological Engineering.
Thomas L. Campbell, M.D., the William Rocktaschel Professor and Chair of the Department of Family Medicine at the Medical Center, was chosen to be president-elect of the Association of Departments of Family Medicine. Just yesterday, Arthur Moss, Professor of Cardiology at the Medical Center received the Heart Rhythm Society's Distinguished Scientist Award for achievements over a five decade career that have led to discoveries in the treatment and prevention of cardiac arrthymias.
Judy Marquez Kiyama, Assistant Professor in Educational Leadership at the Warner School, was selected as a 2011 Emerging Scholar by the American College Personnel Association. She is one of five new rising scholars recognized from across the nation for contributions in student affairs and higher education.
Ricardo Zohn-Muldoon, Associate Professor of Composition at the Eastman School was one of three finalists for the 2011 Pulitzer Prize in Music for his work Comala.
In addition, Doug Phillips, Senior Vice President for Institutional Resources, was awarded the Rodney Adams Award for Excellence in Endowment Management by the National Association of College and University Business Officers.
Our students continue to shine. Two Rochester seniors, Nathaniel Lindsey and Hannah Watkins, and one alumnus, David Liebers, were named 2011-12 United Kingdom Fulbright Scholars. Lindsey, Watkins, and Liebers are the first candidates endorsed by Rochester to succeed in the UK Fulbright competition and were among only 35 scholars selected from a national pool of more than 700 applicants. Watkins also received the Whittaker International Fellowship, and Liebers was also awarded the Gates Cambridge Scholarship.
In all, six University of Rochester students won Fulbrights; eight graduate students won National Science Foundation Graduate Research Fellowships; 11 students received Gilman International Scholarships; junior Scott Barenfeld won a Goldwater Scholarship; and senior Francis Ferraro won a National Defense Science and Engineering Graduate Fellowship.
On April 14, 2011 we held our second University-wide endowed scholarship celebration to express our gratitude to the alumni and friends who have helped support our students who receive scholarships. Among the speakers was Yaneve Fonge '11, a Susan B. Anthony Scholarship recipient, the daughter of parents who emigrated from Cameroon, a nationally ranked track and field weight thrower, and a finalist this past year for the Rhodes Scholarship.
On January 26, 2011, Eastman School of Music trumpet student David Aguila appeared on The Tonight Show with Jay Leno, who showcased Aguila's amazing talent when he simultaneously solved the Rubik's Cube in his left hand while playing Haydn's Trumpet Concerto with his right hand.
Senior guard Melissa Alwardt was named to the State Farm Division III All-America Women's Basketball Team and was an honorable mention All-American for the second consecutive year. Since the end of the 2010-2011 season, Alwardt has been named First Team All-University Athletic Association, First Team All-East Region as selected by d3hoops.com, and First Team All-East Region by the WBCA.
In addition to continuing to work on earlier established University priorities (advancement, communications, senior leadership, community, and diversity), during the 2010-2011 academic year, I have worked with University senior leadership on four core projects: (1) Our Capital Campaign; (2) the Mt. Hope College Town; (3) I-390; and (4) the UR-IBM-New York State Health Sciences Center for Computational Innovation.
THE CAPITAL CAMPAIGN
This was a pivotal year for Advancement, led by Jim Thompson, in our efforts to launch the largest capital campaign in University history. There were significant leadership gifts, including new capital commitments by 16 members of our Board, a $20 million additional commitment by Rich and Martha Handler (bringing their total for scholarship support to $25 million); a $10 million anonymous commitment; and a $10 million commitment by Phil Saunders.
University reunions have emerged as a major area of success. College classes celebrating reunions in 2010 demonstrated unprecedented generosity to the University with gifts made by reunion alumni totaling more than $12.7 million, a 72 percent increase over the 2009 cohort. This level of success was led by three challenges sponsored by Robert B. Goergen '60; Gwen M. Greene '65 and Tom Sloan '65, '67 (MS); and Larry Bloch '75 and Nathan Moser '75.
Endowed professorships are pivotal in attracting and retaining the faculty that make the University of Rochester one of the nation's great research universities. Before July 1, 2005, the University had created 97 endowed professorships in the first 155 years of its history. Since July 2005 we have created 36 endowed professorships, including six new endowed professorship or deanships this academic year:
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The Joan and Martin Messinger Dean of the Eastman School of Music established by Life Trustee Marty Messinger and his late wife, Joan.
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The Lori and Alan S. Zekelman Professorship of Business Administration established by Lori and Alan S. Zekelman to create an endowed professorship in finance at the William E. Simon Graduate School of Business Administration.
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The Richard T. Bell Endowed Professorship established by Richard T. Bell to support a professorship in the University of Rochester Medical Center Department of Radiation Oncology in honor of Yuhchyau Chen, M.D., Ph.D.
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The Philip and Marilyn Wehrheim Professorship established by Philip and Marilyn Wehrheim to support a professorship in the James P. Wilmot Cancer Center for a faculty member whose work focuses on translational cancer research.
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The Denham S. Ward, M.D., Ph.D. Endowed Professorship established by primary donors Debra and Kenneth Butler in honor of Dr. Denham Ward. The professorship is to be held by the Chair of the Department of Anesthesiology.
- The Fyfe Professorship in Economics in memory of Gordon and Hazel Fyfe, brother and sister in the Class of '46, and their parents.
Since 2005, we also have received $123.4 million in commitments to scholarships, fellowships, and other aid for students at the University of Rochester. Some $88.7 million or 72 percent of the support was for endowment.
As of April 29, 2011, we have enrolled 1,724 George Eastman Circle members, a 30 percent growth since last April's total of 1,326. We are on pace to reach our goal of 2,000 memberships by December 2011. This year, a new level of the George Eastman Circle, the Associate Level, was added for recent graduates to help identify the next generation of leaders.
In March we enlarged our Board of Trustees meeting to bring together more than 200 Trustees, other volunteer leaders, and senior academic leaders to focus on campaign planning. The meeting included more than 20 roundtables in which the Board and Campaign leaders engaged in a process that will help sharpen our Campaign themes.
We are on our way to the public announcement of the University's largest capital campaign in our history at our October 2011 Meliora Weekend. Our success in the next months will depend upon broadening those involved in key roles in the campaign. We have had considerable success to date in terms of Board support. We are beginning to build very effective National Councils in each school as well as Regional Cabinets. Over the next few months, we will particularly work to involve the faculty in active roles in the campaign and to develop new means of communication with all involved in our campaign, particularly including our faculty and staff.
MT. HOPE COLLEGE TOWN
On January 25, 2011, the University announced the selection of Fairmount Properties of Cleveland as the development partner for our potential 16-acre College Town on Mt. Hope Avenue between Elmwood Avenue and Crittenden Boulevard.
College Town potentially will include 450,000 to 500,000 square feet with a hotel and conference center, a YMCA facility that would offer health and fitness programs in collaboration with the Medical Center along with child care, a 25,000 square foot book store, a gourmet grocery store, and other retail establishments. A transit center operated by the Regional Transit Authority would facilitate public transportation to the University and provide a parking facility.
Ron Paprocki is leading University efforts in this very important project, including detailed due diligence. We anticipate presenting the Board with a recommendation on whether to go forward by October 2011.
In a separate development, in April 2011, the Rochester's Cultural Center Commission accepted the University's offer to purchase Block F, a 1.5-acre parcel of land on East Main Street across the street from the Eastman School of Music. This parcel is of strategic importance to the Eastman School since it provides an opportunity for the expansion of the School's facilities in the future. The sale will be complete upon approval by the City Council and the County Legislature as well as the University's environmental review. The intent is for the University to engage a private developer to undertake a mixed use development that likely will include residential and retail space.
THE I-390 INTERCHANGE
The I-390 Interchange is an approximately $100 million project to overhaul the main transportation corridor surrounding the University and improve entry to and exit from the University. The University has been working in consultation with the New York State Department of Transportation to ensure specific phases addressed the University's future growth as projected through our strategic and master campus plans. I-390 is one of the University's highest federal and state priorities and appears to enjoy the broad support of the Rochester community because of its potential to provide traffic relief and stimulate economic growth for our region.
However, the project, like New York generally, faces significant fiscal pressures that have threatened funding for future phases, including the pivotal work at Kendrick Road, which is the key to the University's long-term ability to expand the Medical Center and River campuses beyond currently planned projects such as College Town.
We believe that we have achieved a compromise, subject to approval by the State Department of Transportation, that will fund the Kendrick Road portion of this project. The compromise is contingent on specified undertakings by the University and support from both the City and the County through the deferment of other projects. Peter Robinson and Josh Farrelman have done yeoman service in orchestrating conversations with state, county, city, labor, management, and other key figures involved.
THE UR-IBM HEALTH SCIENCES CENTER FOR COMPUTATIONAL INNOVATION
The University of Rochester and IBM have partnered to combine IBM's high performance computing resources and the University of Rochester's robust biomedical research to develop plans for a $100 million center, dedicated to making upstate New York the world leader in high performance computing in health care. Efforts to advance the Center continue through our direct advocacy, the Armonk Group (organized by IBM and including many leading New York State research universities and corporations), and other avenues to pursue $33 million in state support.
Ralph Kuncl has been the quarterback for this project. The Health Sciences Center for Computational Innovation (HSCCI) initially will focus on pandemic influenza, next generation medical imaging, cancer, heart disease, and personalized medicine. This partnership is expected to serve as a significant source of innovation and new technologies that will improve the quality and delivery of health care, reduce costs, and spur significant regional economic growth. The HSCCI will position upstate New York as a hub of innovation and technology development in health care and strengthen and expand the existing research partnerships that the University already has with industry.
This also was a year of tragedy and of continuing budgetary challenges.
Most painfully, on January 15th Jeffrey Bordeaux, Jr., one of our students, was stabbed to death in an altercation with Daren Venable, also one of our students. In April, Daren Venable was found not guilty of second degree murder. Earlier he was suspended from the College.
I have asked Sue Stewart to prepare an internal report, specifically addressing: (1) whether the University had appropriate policies when the events of January 15 occurred and whether they were followed on January 15; (2) how well the University responded to these events; and (3) whether steps should be taken to improve the University's preventive and response capabilities in the future. Trustees Ed Hajim, Cathy Minehan, Hugo Sonnenschein, and I will review this report with the assistance of outside counsel. After the report is completed, there will be further discussion with our Board and University community.
The fiscal environment at both the federal and state levels continues to pose challenges to the University.
New York State recently completed a $132.5 billion budget, which includes no new taxes or debt, but does make significant health and education cuts. This budget closes a $10 billion budget deficit in significant part through a $1.2 billion reduction in state aid to local school districts and a $2.8 billion reduction in Medicaid spending.
The estimated impact to the Medical Center (including Strong Memorial and Highland hospitals and our affiliates) from the health care cuts is approximately $9.6 million, significantly less than the $22 million in proposed cuts initially proposed in the Executive Budget. Over the past three years, the Medical Center has been subject to more than $35 million in state cuts.
At the federal level, Congress recently completed its fiscal year 2011 spending legislation after protracted negotiations that resulted in $40 billion in spending reductions. The FY11 measure preserves the maximum Pell Grant award at $5,550 and makes modest cuts to basic research programs at most of the major federal agencies. The Laboratory for Laser Energetics appears to be well positioned to be funded close to the President's request of $62.5 million.
With the completion of the FY11 budget, Congress has turned its attention to the FY12 budget. Republicans in the House recently passed a budget that reduces federal expenditures by $6 trillion over the next 10 years through a combination of discretionary spending cuts and fundamental changes to Medicare and Medicaid. For non-security discretionary spending, which includes support for higher education, research, and student aid, the budget would cut FY12 spending below FY08 levels, where it would be held for five years.
These changes, if enacted into law, would have a substantial impact on the University. For example, the proposal to change Medicaid to a block grant program would result in $90 billion in reductions to New York State over 10 years. The plan to shift Medicare to a defined-contribution voucher plan would lead to $389 billion in reductions. The House budget would repeal the expansion of health care coverage included in the Patient Protection Affordable Care Act, while retaining the legislation's cuts to health providers, including $155 billion in reductions to hospital payments that would result in $220 million in health care cuts to the Medical Center over the next 10 years.
The Senate is expected to introduce its budget resolution during the next few weeks. Separately, President Obama recently announced his general outline for addressing the nation's budget deficits, with the goal of reducing deficits by $4 trillion over 12 years, while continuing to invest in medical research, clean energy technology, education, and infrastructure. His proposal includes reductions in domestic discretionary spending and $480 billion in savings from Medicare and Medicaid.
While the outcome of the federal FY12 budget process is uncertain, it is reasonable for planning purposes to assume:
(1) Federal sponsored research such as NIH, NSF and Department of Energy expenditures are not likely to grow at a rate equal to inflation over the next few years and will be subject to pressures that may lead to flat levels of expenditures or potential reductions.
(2) Federal and state health care finance similarly will be under pressure for the foreseeable future which at the least will slow or “bend the cost curve” in areas such as Medicare and Medicaid finance. The great challenge with respect to federal and state health care finance involves the uncertainty of how much, in what form, and when these cost pressures will affect our Medical Center.
(3) Federal and state student scholarship and loan support so far have not been materially reduced, but may come under pressure as early as the FY12 budget.
Within this budget framework, we have tightened our belts. In the past three years we have:
- Reduced our endowment draw by $22 million from where it was projected to be in our 2008 strategic plan to approximately $84 million in the past two years.
- Pivotal to this achievement was a $10 million reduction in endowment draw in the College of Arts, Sciences and Engineering and approximately $35 million in annual cost savings in the Medical Center.
- Our capital budgets were constrained as we deferred specific projects such as the Medical Center's new hospital wing or focused on cost efficiencies in projects that did proceed.
- This has meant that for the last two years our endowment spending rate has been below 6 percent on a five-year rolling average for the first time in more than two decades.
The School of Medicine and Dentistry currently is developing plans to address a long-term structural deficit related to the research enterprise and to reorganize the clinical faculty group so that it will be well positioned to handle expected changes in health care delivery. As a first step, the Medical Center has curtailed what originally was planned as continued aggressive faculty recruitment, but will continue to recruit clinical faculty and strategic research faculty as needed.
Similarly in the College of Arts, Sciences and Engineering's revised strategic plan, the objective of faculty hiring was reduced last year. Initially the plan had envisioned growth from a baseline of 320 tenured and tenured track faculty in 2007 to 400 tenured and tenured track faculty by 2016. Last year this was revised to a target of 350 by 2013. Nonetheless, this year has been one of impressive faculty growth in the College, which will add a minimum of six new net faculty members.
We continue to make slow, but steady, progress in our diversity initiatives. Between 2006, when our diversity program began, and 2010, the number of women on our faculty has grown from 411 to 520 (28.6 to 31.7 percent); the number of underrepresented minorities similarly has grown from 37 to 56 (2.6 to 3.4 percent).
The faculty Special Opportunities Fund appears to have been instrumental in this progress. In the past five years, the fund has helped provide resources to complete at least 28 new commitments (data for FY12 are as yet incomplete). In FY12 the fund will equal $750,000, compared to $600,000 in FY11.
We also have seen progress with those in Staff Pay Grade 50 and above. Between 2006 and 2010, the percentage of underrepresented minority employees in these grades grew from 181 to 308 (5.1 to 6.9 percent).
Each school is responsible for its own admissions programs. In aggregate, underrepresented minority enrollment has grown at the University from 7.6 to 8.6 percent between 2006 and 2011, simultaneous with improvements in relevant quality metrics.
Vivian Lewis, Deputy to the President and Vice Provost for Faculty Development and Diversity, for the second year helped orchestrate a University-wide diversity conference on April 29, 2011, to continue discussions of diversity within our community.
In March 2011, the National Science Foundation awarded the David T. Kearns Center for Leadership and Diversity in Arts, Sciences and Engineering a $598,000 grant to fund scholarships for students in mathematics and science. The well-deserved award was particularly appreciated in the year that our former Board chair, David Kearns, died at the age of 80 after a long and distinguished career of service at Xerox, the Department of Education, and in many volunteer roles, including as chair of the National Urban League.
Salutary as this progress has been, the University still has far to go to achieve as diverse and inclusive a community as is consistent with being a world-class research university.
This year, it was notable that the College of Arts, Sciences and Engineering named Professor Cilas Kemedjio to be the new Director of the Frederick Douglass Institute. In making the appointment, the College announced that, with support from the Office of Faculty Development and Diversity, it will seek to make a “cluster hire” of three scholars in African and African-American Studies similar to the approach taken recently in hiring East Asian scholars.
This past year an unusually large number of strategic initiatives were in play. As always, I will continue to address advancement, communications, senior leadership, community, and diversity. My top projects next year, working in conjunction with our senior leadership, will continue to be: (1) the Capital Campaign; (2) the Mt. Hope College Town; (3) I-390; and (4) the UR-IBM-New York State Health Sciences Center for Computational Innovation. Our challenge is to continue to make progress with our strategic plans while maintaining a realistic approach to budgetary realities.
I am confident that next academic year we can successfully publicly launch our Capital Campaign despite the ongoing challenges of New York State and federal budget cuts. The key both to making progress in our strategic plans and in addressing our economy will be to have the discipline to make crisp judgments about what is most important to our University and the resilience to adjust to state and federal budgetary decisions on an ongoing basis. We have demonstrated in the past few years that we can do both.
As ever, I deeply appreciate the Faculty Senate's willingness to focus on the crucial issues facing our University. Together we are building an ever better University.