Dear Santa Clara University Community,

In recent weeks many of you have provided thoughtful feedback on the complicated financial challenges related to the global pandemic. I want to thank you for sharing your thoughts, concerns, and suggestions. We have taken some of your inquiries and updated the Finance FAQ’s on the Prepared SCU website. 

I am also grateful for the Faculty Affairs Committee’s (FAC) analysis of the collaborative governance process in the pandemic-related financial decisions, as well as their recommendations for moving forward. These fall into two areas: strategies to enhance collaborative governance and clarity around the short-term measures designed to help the University address our financial challenges. Let me say a word about each.  

Collaborative Governance: Among the COVID-19 Resilience & Recovery Working Groups, there are examples of deep engagement and broad consultation. There are also clear opportunities to strengthen collaborative governance on financial issues and we will work to improve. I agree with the FAC’s two requests related to governance. As planned, we are sunsetting the financial integrity working group, and will continue to work directly with the appropriate University Policy Committees (UPCs) on compensation policies. At the same time, we will continue to provide information and accept input as we have through town halls and our website. I also agree that it would be productive to convene another educational session among Cabinet members and governance leaders, as we had last summer. We will benefit from time reflecting on this unusual and challenging year: what worked, what didn’t, and what can we do better? 

I am heartened by recent commitments of governance leaders to work together as we face these tough times. I pledge to work with them to promote the solidarity of our community.

Clarity of Short-Term Financial Measures: Our most recent modeling suggests a revenue shortfall of $35 -$45 million for the 2020-21 academic year. To mitigate this lost revenue, I enacted a set of temporary measures to conserve resources. The principles of solidarity, care for the most vulnerable, and cura personalis have shaped my decision making and contributed to a set of decisions that have so far prioritized avoiding layoffs and furloughs. 

As classes begin in the fall, the University will be able to update revenue projections and cost savings. At that time, I will call upon the appropriate UPCs to meet and review any revised projections and discuss strategies related to compensation, which may include increasing the spend rate on the endowment again or borrowing against the endowment. Unfortunately, as I wrote before, given the fluid nature of the pandemic and its multiple impacts, I cannot now  provide the certainty of when benefits and the merit pool will be restored, but I have promised that these cuts will be temporary. Part of the ongoing consultation will be about timing. 

Beyond the concerns expressed in the FAC letter, I want to acknowledge what I have heard over these last couple of months: many of us are anxious, tired, frustrated, even scared, and we all carry the impacts of the pandemic in different ways. This is where we need to rely on one another even more, in the generosity of spirit that defines us. We will get through the help of God and one another. No one carries any burden alone.

Sincerely,

Kevin F. O'Brien, S.J.
President