THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, January 26, 1995 TAG: 9501260389
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY PHILIP WALZER, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 88 lines
Regent University is laying off seven administrators - including a vice president, the registrar, the public relations director and the chaplain - and three secretaries to cut costs.
President Terry Lindvall announced the decision at a staff meeting Tuesday afternoon. He said in an interview Wednesday that the university ``did not budget as prudently as possible,'' but ``was not in a crisis.''
Just 2 1/2 years ago, the Christian graduate school received a windfall that made it the envy of universities nationwide: a donation of $117 million in investment securities from the Christian Broadcasting Network.
Regent transferred some of that money to other investment vehicles. The value of the total portfolio rose to $193 million in late 1993 but has since fallen to about $150 million, said John E. Mulford, Regent's executive vice president.
In addition, Lindvall said, the university has borrowed $9 million from the endowment this year to finance capital projects such as the newlaw building and computer purchases.
The layoffs, Mulford said, are intended not to recoup the stock losses but to avoid another transfer from the endowment. Most universities tap endowment money only in emergencies.
``We decided $9 million was too much to take out annually,'' Mulford said. ``This isn't a panicked reaction to an instantaneous financial crisis. We have lots of money. It's more a planned adjustment to what we see as financial realities.''
Lindvall said, ``The difficult challenge before us is we will go through a couple of lean years.'' But ``I do not foresee at this time any programs being dropped.''
The decision came days before a pivotal meeting between Regent administrators and American Bar Association officials, who long have been concerned about Regent's finances. Next month, the ABA is expected to decide whether to grant full accreditation to the law school.
Lindvall said he didn't think the layoffs would influence the ABA. ``The academic programs are not at all suffering. In no way is it taking away from the budget of the law school and the quality of instruction. That program is well-enhanced, and that's going to continue.''
He compared Regent's action to the type of restructuring that state-supported universities in Virginia are undergoing to make up for state budget reductions. But Regent's cuts go deeper, and higher up the chain of command, than those at most state universities.
The 10 people being laid off are Harold Hazen, vice president of development and advancement; Virginia Weirich, registrar; Sylvia Livesay, public relations director; Joel Palser, chaplain; Roald Cornelius, director of gift annuities; Marilyn Akerson, a counselor; Art Matzkvech, coordinator of international students; and secretaries Sheila Walker, Tina Bodnar and Sherry Happel.
They will leave the university within a month. In addition, Gregg Schulte, vice president of administration and finance, will be transferred to a lower-level position and his current job will be eliminated.
Mulford said the move is part of a plan to cut annual costs by $1.5 million - $500,000 each from the payroll, operations and capital budgets. He said the layoffs would cover the bulk of the $500,000 reduction in payroll.
Lindvall said the layoffs were based not on competency, but on an examination of sectors that Regent could prune.
``We have had redundancies in the university,'' he said.
Mulford, Regent's former business dean, will oversee areas such as budget and fund raising that were under the two vice presidents. The chaplain's duties will be split among students in the divinity school, and the registrar's among individual colleges. Lindvall himself will handle public relations.
Before the endowment gift, CBN had been giving the university $6 million a year to cover expenses. But the grant was meant to make the university self-sufficient, and CBN stopped the funding.
ABA officials had cited Regent's financial condition and dependence on CBN as among their chief concerns.
Lindvall will meet members of the ABA's accreditation committee Friday during a conference in San Juan, Puerto Rico. He said he did not expect them to announce their recommendation. He said he expected the final decision to be made by the ABA's House of Delegates at a conference in Miami in mid-February.
ILLUSTRATION: Regent President Terry Lindvall said in an interview that the
university ``did not budget as prudently as possible,'' but ``was
not in a crisis.''
KEYWORDS: REGENT UNIVERSITY LAW SCHOOL LAY OFFS BUDGET by CNB