Renovations in Dieseth and Miller Halls and the completion of Baker Village were postponed by the Luther Board of Regents at their fall meeting Oct. 25-26. The decision came in the midst of a national economic downturn which has colleges around the country tightening their budgets.

The Regents met to evaluate Luther’s current status and plan for the future. Topics of discussion were wide-ranging, but this fall’s meeting focused on Luther’s financial plan. Several factors contributed to the decision to halt housing renovations.

Economic hurdles

First, the economic downturn has decreased Luther’s endowment. The endowment is the interest that comes from money the college has invested. Endowments, like stocks, fluctuate with the market.

Vice President for Enrollment Keith Christensen offered hope for Luther’s finances during the economic slump.

“Fortunately, we are well diversified,” said Christensen. “Our market losses during this time have been less than the market loss averages overall. Endowment is a perpetual asset. We don’t invest it or spend it with a short-term view.”

Another hurdle for the college is a period of decreased enrollment. The first-year class that will graduate in 2012 is down 45 students from last year. Because of the unexpected decrease, the Regents decided to hold off on certain projects such as renovating the Towers.

Valders will continue renovations until they are completed.

“Luther is very strong financially right now,” said the Chairman of the Board of Regents Paula Meyer. “We want to get that enrollment back on target. It’s a frightening time to take on too much debt.”

Faculty representative to the board and Political Science professor John Moeller said students could see a leveling off of tuition hikes as discussion continues over Luther’s budget.

“There was no sense of panic, but serious discussion about how much we can charge students to get here,” said Moeller.

Next year’s comprehensive fees are scheduled to be announced at the February Regents meeting, but Moeller said it could come as early as mid-January.

“Running a college is a big complex business,” said Meyer.

Luther joins ACM

Luther recently joined the Associated Colleges of the Midwest, which was announced to the Regents at the meeting.

The ACM recognizes outstanding liberal arts colleges and includes schools such as Carleton College, Grinnell College and St. Olaf College.

“I think this is a big deal,” said Moeller. “It’s a real reflection of how Luther is regarded by other colleges.”

Regents lead with outside perspective

The board holds 30 active Regents who are mostly alumni and have active philanthropic roles at Luther. They come from a variety of vocations and regions and meet three times a year to contribute to the growth of the college.

Several student and faculty representatives also take part in the meetings. Karishma Sushilkumar (’10) represented the Diversity Center at the Regents meeting.

“The board is where the strategic planning happens- where the big picture steering takes place - they provide their expertise and volunteer hours as free consultants to the Luther management,” said Sushilkumar.

Sushilkumar and Student Senate President Lauren Henrikson( ) addressed the board with reflections of the student body. They reported a positive student response to the Samson-Hoffland Laboratories building and the removal of the road through campus at the library lawn. As for needs and requests, they encouraged renovations in towers and asked Regents to consider installing wireless internet there.

Time for reflection

As part of this fall’s meeting, emeritus Regents were invited back to campus to reflect on memories of their time here. A panel of three presidents in Luther’s history, Buck Farwell, H. George Anderson and Richard Torgerson shared memories through the decades at Luther with Rob Larson moderating in an evening called “Presidential Reflections.”

Student musical groups Vinyl Roots and Undeclared performed songs from each of the decades the presidents discussed.

“It was a very interesting history of the college through the eyes of former presidents,” Meyer said.

According to Meyer, the Regents contributed 25 percent of the $93 million raised in Luther’s recent Higher Calling campaign. Regents are not paid by the college and generally have successful careers, where much of their expertise is drawn from.

“The Regents are a pretty sweet bunch. They have a great sense of humor,” said Sushilkumar. “They’re really interested in how students are doing.”