A Message from President Aceves

Dear Colleagues, 

We are beginning to see early signs of enrollment stabilization. This fall, we welcomed over 1,400 new students eager to start their studies at Regis University. This is a positive sign for what lies ahead in a post-COVID environment. I asked Vice President and CFO, Stephanie Morris, to provide us with an update on how this new reality is reflected in this year's fiscal performance, keeping in mind that our financial picture is complicated by our two-year commitment to spend up to $30M beyond operating revenue. Here is what she shared.

“October 31, 2023, marked the completion of the first half of fiscal year 2024. Financial statements for the period reflect the University is currently meeting budget-to-date expectations, with total budgeted operating revenue meeting revenue targets. For the period ended October 31, 2023, Anderson and Regis College exceeded tuition revenue targets by 10% and 6%, respectively. Rueckert Hartman's tuition revenue was 6% below budget for the same period.

To date, budgeted operating expenses are $1.3M lower than anticipated from savings in units. Total rewards salary increases were distributed to faculty and staff in September 2023, and unit budgets have been increased to cover the higher costs.

Once a year, Moody's Investor Services reviews Regis's financial position. They focus on the financial results from the previous fiscal year, reflecting declining student enrollment, greater market competition, and deficit spending. Their assessment, not surprisingly, was that our financial position has weakened from spending more than our operating revenue.  As a result, Moody’s lowered our credit rating while, at the same time, outlining what Regis needs to do to achieve financial stability and sustainability.

Financially, we must remain vigilant and disciplined in managing current operations.  However, our long-term success depends on effective student recruitment and enrollment, a diverse portfolio of transformative, high-quality, in-demand certificate, undergraduate, and graduate program offerings that are appropriately resourced and optimized to achieve student success, strong retention, and improved graduation rates.

The University remains well served through its operating structure and budget model that favors flexibility to proactively adapt to changes in the current environment while avoiding draconian, reactive measures that provide short-term unsustainable financial relief. We must reaffirm our commitment to collaboration and support open communication, promoting processes and practices that lead to institutional and student success.”

I am grateful to Stephanie for stewarding and guiding us through the complexities of our fiscal framework. Finances are a critical part of an organization, enabling it to realize its mission. With a solid financial foundation, we ensure Regis University has the resources to support initiatives, innovate, and fulfill the institution's purpose while sustaining its efforts of helping create a more just and humane world.

Kindly,

Salvador D. Aceves, Ed.D

President