Gannon University Annual Report 2021-22

ANNUAL REPORT

GANNON UNIVERSITY ANNUAL REPORT

FROM THE PRESIDENT

The 2021-2022 Fiscal Year marked the start of Gannon University’s new 2021-2025 Strategic Plan “Advancing Our Bold Tradition.” This plan was developed through an inclusive process that advanced the momentum of the previous successful plan and staked out key strategies and prioritized goals over the next four years looking toward Gannon’s 100-year anniversary in 2025.

I am honored to share that we’ve seen significant, immediate impact toward achieving our goals within our first year of the plan.

At a time when higher education is facing monumental challenges, we’ve reached record enrollment and welcomed students to our Erie and Ruskin campuses from more than 70 countries across the globe. We’ve invested in our communities and in our campus facilities to provide new and improved learning and living environments like our Ruskin Academic Building, the Hatchery in I-HACK and South Hall. We’ve achieved notable progress in pursuit of our $100 million campaign: Believe. Inspire. Transform. Gannon’s Next Century. Our students and employees have engaged in meaningful work to enhance the experiences of their peers and colleagues revising our Liberal Studies Core, serving in the community, and in programming and resources on campus dedicated to well-being and justice, equity, diversity and inclusion. This work together is inspiring us each to become our best selves.

I am humbled by the leadership and genuine care of those on our campuses who’ve worked diligently to provide transformative experiences for our students and our employees. Gannon is in a healthy position as we reflect on the first year of our plan thanks to the work of our faculty and staff and the continued support of our alumni and friends. Thank you for making a difference in the lives of our students and in our communities, and congratulations for making this another successful year for Gannon University.

God Bless,

OUR GOALS

Gannon University introduced its new Strategic Plan in Fall 2021. The theme of this plan, “Advancing our Bold Tradition,” recognizes Gannon’s founding on providing access to education for students of all backgrounds and takes pride in advancing that bold tradition into the future. Our Strategic Plan, and the goals within it, serves as our roadmap for the bold strategies needed to best position the university to create meaningful impact on our campuses, in our communities and around the world. The goals of the plan outlined below answer the call of our Mission and advance the fulfillment of our purpose: We transform lives by creating environments for extraordinary moments and everyday connections that inspire others to become their best selves.

INSPIRE TRANSFORMATIONAL EXPERIENCES

Cultivate

STEWARD DIVERSIFIED FINANCIAL RESOURCES

Create

ADVANCE ENROLLMENT & STUDENT SUCCESS

Integrate

EXPERIENCES

A GREAT COLLEGE TO WORK FOR

Gannon earned its first-ever Honor Roll status as one of 42 institutions nationwide that were recognized as a 2021 Great College to Work For ® The results of this survey were used as a guide to enhance the employee experience throughout the year. An emphasis was placed on 2022 survey participation to continue gathering this meaningful data. This led the university to achieving an overall survey score of 72% — which was higher than its Carnegie comparison group — and receiving recognition as a 2022 Great College to Work For ® for the fifth time. Gannon was recognized in three categories: Mission & Pride; Confidence in Senior Leadership; and Diversity, Inclusion & Belonging.

AN INCLUSIVE PATH FORWARD

The university’s Justice, Equity, Diversity and Inclusion Steering Committee continued its work in formalizing and implementing an institutional plan that fosters an environment for open dialogue and collaboration, deepens our understanding of social responsibility and creates positive change.

A Campus Climate Survey was created and distributed to students and employees to collect information about their experiences and perceptions of inclusion and belonging on our campuses. This feedback provided direction to the steering

committee and university leadership for setting goals and allocating resources. An approximately 50% employee response rate and 10% student response rate revealed a positive feeling toward sense of belonging at Gannon, and perceptions of campus related to diversity.

The committee created a three-year plan with this feedback, which began in Fall 2022 with the hiring of a Director for Diversity and Inclusion and the creation of a Center for Student Diversity and Inclusion for a visible location on campus equipped with resources, programming, leadership development and peer mentoring.

FOSTERING WELL-BEING OF STUDENTS AND EMPLOYEES

In alignment with our Mission, strategic plan and GU+ service standards, the university is committed to providing a meaningful, holistic and valuecentered approach to well-being that adapts to the existing and emerging needs facing our diverse community today.

Employees engaged in University Wellness Reward incentives tied to health care premium costs with 79% of insured employees and 73% of all employees completing a health risk assessment and biometric screening, setting themselves up for healthy lives as well as serving as good stewards of our financial resources as prevention is less costly than restoration of health.

Mental health was made top-of-mind as we navigated pandemic-induced uncertainties. In response, Gannon provided students on its Erie and Ruskin campuses with free, 24/7 access to medical and mental health support through TimelyMD’s TimelyCare technology. More than 700 students enrolled to use this resource, creating an extension of Gannon’s Health and Counseling Center resources with virtual care options from licensed physicians and counselors, including on-demand mental health support, health coaching and more.

As the university looked beyond challenges posed by the pandemic, the Wellbeing Task Force continued working to nurture a campus culture that optimizes wellbeing for all. During the 2021-2022 Fiscal Year, wellbeing was included as one of four training topics in our new Gannon 101 experience for new students. It was also adopted as a requirement in the revised Liberal Studies Core curriculum, which now incorporates liberal education in a manner that intentionally attends to the student’s wellbeing to foster a dynamic state that allows individuals to flourish and realize their best selves.

CAMPUS IMPROVEMENTS AND STRATEGIC ACQUISITIONS

Gannon continued development of spaces on campus creating significant impact on student and employee experiences. Improvements and acquisitions were made to accommodate an increase in global enrollment, projected growing residential needs, academic program additions, and enhancements to learning environments and technology.

The university invested more than $18 million in renovations in Erie and Ruskin, which included the development of the third floor of Ruskin’s Academic Building to create designated labs and classrooms for new and growing academic programs, as well as student and employee amenities such as on-campus dining and an interfaith prayer space.

In Erie, I-HACK’s Hatchery opened doors to its Maker Lab, Extreme Networks Lab and GIS Center, Erie Insurance Idea Lab for Gannon’s Minor in Innovation and Creativity, and a variety of studio spaces rented by businesses that employ more than 121 student interns Additionally, an agreement was formed to rename the Hammermill to the Highmark Events Center, which will receive enhancements to improve the athletic experience and create community event opportunities. Construction at South Hall was completed and welcomed 95 residents for Fall 2022; upgrades in Waldron Campus Center established a new event space for students;

the Recreation and Wellness Center pool underwent renovations; and McConnell Family Stadium received a new turf and scoreboard to provide an optimal practice and gameday environment.

The university invested more than $1 million to acquire residential properties near campus as part of its ongoing engagement to improve neighboring communities, reduce blight and accommodate a growing student enrollment through a variety of residential options.

BELIEVE. INSPIRE. TRANSFORM. GANNON’S NEXT CENTURY

In September 2021, Gannon launched a historic $100 million fundraising campaign: Believe. Inspire. Transform.

Gannon’s Next Century. As the university approaches its centennial anniversary in 2025, this campaign is a tribute to Gannon’s bold traditions and decades of success.

Four overarching goals were established, including foster academic excellence, enrich the student experience, enhance our growing campus landscape and leverage the Gannon Fund.

The campaign launch was announced alongside two scholarship challenge matches.

First, the university’s Board of Trustees designated $1 million to establish the Next Century Endowed Scholarship Challenge to be used as a match to support merit and needbased academic scholarships for students in Erie and Ruskin.

Second, the Inspiration Scholarship Challenge

established a $500,000 challenge match that created an additional $500,000 through donor contributions matched one-to-one.

The campaign engaged benefactors throughout the fiscal year and reached $68.7 million by June 30, 2022.

FUNDING INSTITUTIONAL PRIORITIES AND ECONOMIC DEVELOPMENT

Gannon’s comprehensive campaign integrates revenue streams from our donors, grants and additional sources to align funding with institutional priorities to ultimately shape a transformative experience for students and employees. The university received more than $10 million from grants, contracts and alternative revenue to help support academic excellence, research, community engagement and economic development.

This included $1.5 million in funding from the Appalachian Regional Commission to support the Center for Manufacturing and Technology in I-HACK. Other grants included a $1.5 million PA Redevelopment Assistance Capital Program award to help renovate the Highmark Events Center and $1.4 million from the U.S. Department of Education for the Ronald E. McNair Post-Baccalaureate Achievement Program to support under-represented, first-generation and lowincome undergraduate students pursuing graduate degrees.

ADVANCE ENROLLMENT AND STUDENT SUCCESS

STUDENT POPULATION

Today’s climate and outlook for postsecondary education holds challenges, but also opportunities for Gannon. Gannon’s global outreach never wavered through national challenges of political divisiveness and the global pandemic. We continued to extend opportunities for students to enroll at the university. This positioned Gannon well as a top choice for many students, which yielded positive impact on institutional enrollment for the 2021-22 Fiscal Year. Global enrollment reached 785 total students in the fall semester, increasing to 868 total students from more than 60 countries and U.S. Territories in the spring semester. Some of these locations are newly represented or have not been represented in more than a year, including Afghanistan, Argentina, Azerbaijan, Denmark, Hungary, Kyrgyzstan and Sweden. Enrollment projections at the end of the fiscal year anticipated that Fall 2022 would exceed graduate enrollment goals and reach a record percentage for Gannon’s global population and record overall enrollment. These expectations became the record-breaking reality in Fall 2022.

ENROLLMENT WITHIN OUR PRIORITIZED AREAS

The university was steadfast in creating the infrastructure to enhance student and employee experiences through its construction investments for I-HACK, the second academic

building at the Ruskin Campus and South Hall in Erie. These investments supported strategic focus on enrollment in Gannon’s cyber programs, graduate programs in Ruskin, as well as enrollment of oncampus residents and students attending college for the first time.

Cyber programs saw significant growth with interest from students across the globe, reaching 101 undergraduate and graduate students in Spring 2022. This reflects the worldwide demand for increased cyber security across all sectors. Gannon’s Ruskin Campus strengthened to enrolling 316 students in Fall 2021 and now offers seven programs that align with the needs of the health care industry. Investments like the renovations that led to the opening of South Hall in Fall 2022 were initiated to grow housing options that best accommodate Gannon’s evolving student population.

EXPANDING OUR ACADEMIC INFRASTRUCTURE

Gannon exemplified its dedication to delivering an optimal educational experience that meets current and future career and workforce needs by diversifying the academic infrastructure of its majors and modalities. The university launched new programs that align with industry needs and the needs identified to promote student success. These included a variety of exploratory studies programs across all three colleges for first-year students discovering

their path; bachelor’s degrees in applied intelligence, applied exercise science and business studies; five-year bachelor’sto-master’s programs in mechanical engineering and engineering management; a master’s in business essentials; and an anti-money laundering certificate program.

The modalities of several existing programs, such as master’s programs in healthcare administration and public administration, were also assessed to provide more accessible options to accommodate the needs of our global population and working professionals nationwide.

A thorough evaluation and plan for a Liberal Studies Core revision was completed and launched by a universitywide task force throughout the 2021-22 Academic Year, with implementation of new and revised courses beginning in Fall 2022. The revision supported Gannon’s identity as a Catholic University, a commitment to the Catholic Intellectual Tradition and the delivery of a quality liberal education. It provided a curricular structure that enhances the student’s academic experience by better aligning with the student’s major and by integrating broad knowledge, skills and competencies that develop intentional connections with a student’s present-day life, career and engagement as a global citizen.

GROWING EMPLOYMENT

Employment was positively impacted in Erie and Ruskin by providing jobs for 2,108 student employees and 1,005 university employees, which includes 639 full-time and 366 part-time employees.

The university’s investment in current capital projects infused $18 million into Erie and Ruskin economies through contracts awarded, and employment for construction and professional services toward the development of facilities including the third floor of the Academic Building in Ruskin, the Hatchery in I-HACK and South Hall.

Within six months of graduation, 92% of undergraduate and graduate respondents achieved employment in substantive roles or continued their education. Roughly 34% of those graduates were employed by organizations in Erie and Ruskin.

DRIVING ECONOMIC DEVELOPMENT

The university made payments within the community that reached more than $37 million for a variety of goods and services. Students and employees supported 18 Erie businesses through the GU Gold program making $180,000 in purchases.

Employee compensation injected $63 million into the local economy. This contribution was leveraged by

the amount of state and local income tax revenue supported by the university’s payroll, and by economic multiplier effects derived from the spending generated by employees that supports local businesses, charities and professionals.

Gannon is equipped with an entrepreneurial ecosystem that integrates the Dahlkemper School of Business, the Small Business Development Center, Erie Technology Incubator and NWPA Innovation Beehive Network. Collectively, these entities served more than 1,200 clients, helped form more than 50 businesses that created nearly 250 jobs, and together raised more than $12 million in capital formation. The services provided by these entrepreneurial resources extended beyond companyspecific support to also include more than 100 educational programming opportunities for the community.

SERVING OUR COMMUNITIES

Gannon’s commitment to service made significant contributions to the Erie community as students and employees completed more than 57,500 community service hours to support local organizations.

Gannon serves as the lead partner at Strong Vincent Middle School, a United Way community school, to provide resources that directly support students and their families. Gannon focused its support on enrichment and

education programming to increase attendance during the pandemic. This created a robust and successful framework for after-school and enrichment programming that yielded SVMS’ highest number of program offerings. Students and employees across the university delivered programs like Feeding Minds and Goals for Life to engage SVMS students beyond traditional academics to combat chronic absenteeism. August 2021 marked five years since the Our West Bayfront Community Plan was completed. The organization reconnected with community members to chart its course for the next five years, creating key goals including serving OWB residents equitably, improving perceptions of the neighborhoods, emphasizing safety through intentional design and celebrating the unique nature of the community. Initiatives were prioritized to focus on housing, commercial, infrastructure and service. The organization made progress on these priorities by also assisting 18 properties with more than $90,000 in home repair grant assistance, mobilizing more than 550 volunteers contributing nearly 2,500 service hours, coordinating more than 20 free community events, and facilitating three major works of public art.

FINANCIALS

Gannon University completed Fiscal Year 2021-22 with a positive financial performance. Total net assets from operating activities increased by $2.5 million.

Net tuition and fees increased by approximately $3.2 million, or 4.3%, versus the prior year. The overall tuition discount rate was 41.5%. Auxiliary enterprise revenue decreased by approximately $500,000 to a total of $13.6 million.

The historic record enrollment for Fall 2021 totaled 4,705 students, which included 3,289 undergraduate students and 1,416 graduate students. Within these populations, included a Ruskin enrollment of 315 students and a global enrollment of 782 students. Enrollment reached another record high in Fall 2022 as the university continued to experience significant growth in graduate global recruitment. Unrestricted contributions totaled approximately $1.0 million and restricted operating contributions added another $1.5 million, totaling approximately $2.5 million.

Federal, state and private grants totaled $11.1 million, a $2.2 million increase from FY21. This includes federal funds the university continued to receive from the Higher Education Emergency Relief Fund (HEERF) in response to COVID-19.

The total return on the endowment was -13.6%. The endowment fund decreased from $83.5 million at the end of FY21 to $71.0 million on June 30, 2022. Total expenses reached $104.0 million, an increase of $8.7 million from the previous year. Total operating revenue reached $108.5 million, a $5.5 million increase over the previous year.

OPERATING

Tuition

$77.2

11.1

2.4 2.5

13.6

3.6 4.1

Total $103.0 $108.5

$61.4 $63.1

21.3 28.5

3.5 3.1

6.2 6.4

2.9 2.9

Total $95.3 $104.0

EXPENSES BY FUNCTION

Instruction

$48.2 $49.5

1.9 1.5

17.6 23.0

18.0 20.0

9.6 10.0

Total $95.3 $104.0

FUNDS

2021-22

$53.6 $54.7

14.4 22.4

Retirement 1.8 2.1

0.9 1.7

Total $70.7 $80.9

of

$83.5 $71.0

BOARD OF TRUSTEES

Most Rev. Lawrence T. Persico, J.C.L. • Chairperson Bishop of Erie Erie, Pa.

Thomas C. Guelcher ’62, ’76M • Vice Chairperson Risk/Properties Director Sisters of Mercy Erie, Pa.

Gwendolyn M. (Ralph) Garbarino, Esq. ’82 Secretary Vice President and General Counsel Eden, Inc. State College, Pa.

Keith Taylor, Ph.D. • President Gannon University

Robert P. Barker ’72 Retired Executive Parker Aerospace Dana Point, Calif.

Candace D. (Horton) Battles ’93 Retired Social Worker Harborcreek Youth Services Erie, Pa.

Richard E. Beattie ’92 Owner Mechanical Engineering & Construction Corp. (MEC2) Phoenix, Md.

Rev. Msgr. Robert L. Brugger Retired Diocese of Erie Erie, Pa.

Andrew Caswell, Ph.D. • Associate Professor of Psychology President, Gannon University Faculty Senate Erie, Pa.

Walter W. Cooper ’85, ’87M President and CEO Precision Health Solutions St. Petersburg, Fla. Tina M. (Cicchetti) Donikowski ’85 Retired Vice President GE Transportation Systems Erie, Pa.

Sr. Mary Drexler, S.S.J. ’71VMC • President Sisters of Saint Joseph of Northwestern Pennsylvania Erie, Pa.

Dana M. (Kennedy) Fallon ’91 Career Services Manager Northern Virginia Community College Annandale, Va.

Very Rev. Michael Ferrick, V.F. ’94 Rector St. Peter Cathedral Parish Erie, Pa.

James Fiorenzo ’90M Retired President UPMC Hamot Erie, Pa. and Bonita Springs, Fla. James Grunke CEO

Erie Regional Chamber and Growth Partnership Erie, Pa.

Major General Timothy J. Hilty ’81 Assistant Adjutant General Army, Pennsylvania National Guard Lebanon, Pa. Rev. Scott W. Jabo Vice-Rector and Associate Director of Seminarians St. Mark Seminary Erie, Pa.

Stacy M. Juchno ’98

Executive VP and General Auditor

PNC Financial Services Group, Inc. Mars, Pa.

Scott M. Krall ’84 Corporate EHS and Senior Remediation Manager PPG Industries, Inc. Pittsburgh, Pa.

Rev. Msgr. Edward M. Lohse , J.C.D., V.G. ’84 Vicar General Canonical Services Diocese of Erie Erie, Pa.

Pierre McCormick ’79 Retired President/CEO Wisconsin Distributors, LLC Erie, Pa.

Mark J. Minnaugh ’81 Retired Executive VP

Giant Eagle, Inc. Allison Park, Pa.

Elisabeth “Betsy” (Roeback) Monsalve ’70VMC Retired Principal, E.R. Monsalve CIH, Inc. Retired Director, McManis & Monsalve Associates Ashburn, Va.

Richard G. Orlando, M.D. ’76 Retired Director, Cataract Surgery Columbus Ophthalmology Dublin, Ohio

Kiran K. Rajasenan, M.D. ’93 Medical Oncologist

UPMC Passavant Pittsburgh, Pa.

Rev. Nicholas J. Rouch, S.T.D., E.V. ’83 Vicar for Clergy Diocese of Erie Erie, Pa.

James J. Rutkowski, Jr. ’83 General Manager/Treasurer Industrial Sales and Manufacturing, Inc. Erie, Pa.

Matthew Schlessman • President, Gannon University Student Government Association Erie, Pa.

Antoinette Spevetz, M.D. ’83 Professor of Medicine Cooper Medical School of Rowan University Oxford, Pa. Rev. Marc Stockton, J.C.L. ’98 Judicial Vicar Diocese of Erie Erie, Pa.

Aaron Susmarski ’09 • LECOM

Institutional Director of Human Resources, EEO Coordinator, Title IX Coordinator President, National Alumni Board Erie, Pa.

Monica (Mangefrida) Trott ’87, ’90M Global Technical Lead/Portfolio Management Google Headquarters Fremont, Calif.

Margaret A. (Rothgery) VanderLaan ’89 Chief Marketing Officer Encore Electric, Inc. Highlands Ranch, Colo. Howard Ward, Ph.D. Associate Vice President of Auxiliary Services Rochester Institute of Technology (RIT) Rochester, N.Y.

Ex-officio Members