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Poor Forbes ranking rankles Wittenberg officials

University falls in the bottom 10 on list of financially strained schools.

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By Kelly Mori, Staff Writer Updated 1:07 PM Friday, July 30, 2010

In a recent look into the financial health of the country’s most prominent colleges, Forbes magazine ranked Wittenberg University in the bottom 10 — an analysis university officials call misleading and irresponsible.

Wittenberg, with an $87 million endowment, was ninth on the list of financially strained schools, while Wabash College, with a $272 million endowment, was ranked the worst financially of all the schools.

“When (Forbes) contacted us we were all surprised. It came literally out of nowhere,” Wittenberg Dean of Students Sarah Kelly said Tuesday, July 27. “Then when we saw what company we were in — Wabash and Agnes Scott — we quickly realized there was something strange about the methodology. Some of these schools have $300 million endowments. We just don’t understand.”

Only schools with endowments of more than $35 million were included in the study that concluded financial strains could translate into tuition hikes and program cuts that would negatively affect students.

The report showed Wittenberg’s expenses exceeded revenue by $7 million in FY 2008. The study also looked at Moody’s ratings (Wittenberg is rated Baa2) and endowment benefit.

A one-year snapshot is not a good indicator of financial health, said Darrell Kitchen, Wittenberg’s vice president of business and finance.

“There is so little credibility here,” he said “Those (2008) expenses reflect noncash items such as depreciation. ... Some years are better than others depending on what is going on from a capital standpoint.”

The university just completed a $5.5 million renovation of Blair Hall and has invested $35 million in new construction and renovations, he said. Endowment performance is in the top 5 percent.

Despite two challenging years since the recession, Wittenberg has cut no programs, faculty or support services, Kelly said. Tuition increases have been held at historic lows.

“What this kind of article does is scare families,” she said. “It’s unconscionable.”

The 10 least financially healthy private prominent colleges, Forbes’ magazine:

Pace University-New York enrollment 12,704 Endowment $93 million

Wittenberg University — Enrollment 1,976, Endowment $87 million.

Illinois Wesleyan — Enrollment 2,125, Endowment, $151 million

Southwestern University — Enrollment 1,270, Endowment $227 million.

Sweet Briar College — Enrollment 828, Endowment $75 million

Regent University — Enrollment 4,278, Endowment $187 million.

Agnes Scott College — Enrollment 832. Endowment $231 million.

Hanover College — Enrollment 926, Endowment, $108 million.

Birmingham Southern College — Enrollment 1,458, Endowment $73 million.

Wabash College — Enrollment 911, Endowment $272 million.