Date This is to certify that the thesis entitled The Church Related College: Higher Education in the Free Methodist Church During the Decade of the Seventies: . Implications for the Eighties presented by David John Gyertson has been accepted towards fulfillment of the requirements for Ph.D. degreein Higher Ed. Administration / I. 7% a/x/QW Major Meant 0-7639 2/9/81 1H HEM RY Michigan grate University ———— OVERDUE FXNES: 25¢ per day per item RETURNING LIBRARY MATERIALS: Place in book return to rmve charge from circulation records THE CHURCH RELATED COLLEGE HIGHER EDUCATION IN THE FREE METHODIST CHURCH DURING THE DECADE OF THE SEVENTIES: IMPLICATIONS FOR THE EIGHTIES By David John Gyertson A DISSERTATION Submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Administration and Higher Education 1981 ABSTRACT THE CHURCH RELATED COLLEGE HIGHER EDUCATION IN THE FREE METHODIST CHURCH DURING THE DECADE OF THE SEVENTIES: IMPLICATIONS FOR THE EIGHTIES By David John Gyertson The unique parallel system of private and public colleges has been one of the distinguishing characteristics of American higher educa- tion. For two and one half centuries, the private colleges have dominated the educational activities of the postsecondary system in the United States. During the decade of the sixties, and particularly the seventies, the private college sector began to slip in both numbers and vitality due to numerous factors including the rapid increase in educational costs, the decline in the number of students attending college and the disintegrating interest in a purely liberal arts curriculum. While the private college sector as a whole has been dramatically influenced by these and other factors, the church related subset seemed to be in the greatest danger of disintegrating and perhaps disappearing. How have church related in- stitutions responded to the enrollment, financial and academic program pressures of the last decade? What trends have developed during this period? How do these trends compare with what has happened in the over— all private sector? What are the implications for church related colleges in the decade of the eighties if these trends continue? The purpose of this study is to address some of these questions raised about the condition and future of the church related sector by David John Gyertson examining the trends in finance, enrollment and academic program and fac- ulty of a group of four colleges affiliated with the Free Methodist Church of North America. In addition, the results of these trends are compared to the national sample of private colleges researched by John Minter and Howard Bowen in their annual evaluation done for the National Institute of Independent Colleges and Universities entitled Independent Higher Education. Finally, projections for the eighties are established in each of the three afore mentioned areas and implications drawn. Using the Minter-Bowen project as a guide for the design of the study, financial, enrollment and academic program data was gathered from the standardized reports submitted by the institutions. The Higher Edu- cation General Information Survey requested by the Department of Health, Education and Welfare and the Survey of Voluntary Support gathered by the Council for Financial Aid to Education were the primary sources with in- formation from college and denominational records utilized to supplement. Interviews with the college presidents preceded actual data collection in order to delimit the issues that would be addressed. Through the use of measures of central tendency, trend line analyses and linear regress- ion, aggregate data was compiled for the colleges as a group to address the issues raised. The major findings of the study included: 1) that the decade of the seventies had been significantly more difficult for the denominational colleges as a group than for the rest of the private sample, 2) that the decade of the eighties could be significantly more challenging for the denominational group than for the rest of the private sector, 3) that the denominational colleges had increased in their dependance on govern- ment support, 4) that the denominational colleges were becoming David John Gyertson decreasingly dependent on the sponsoring denomination, 5) that there was no evidence in the study that the colleges had changed in either their ability to effectively achieve or their commitment to accomplish their historic mission, 6) that there was no conclusive evidence that financial distress had given way to quality distress on these campuses, 7) that enrollments for this church related group had been andshould continue to remain at levels supportive of a viable academic program, 8) that the church related group was able to remain financially solvent through the seventies but appeared to be in a worsening situation for the eighties, 9) that academic and instructional program expenditures did experience a serious decline, 10) that due to the way the college group was selected and the unique fraternal relationship of denominational con- trol, generalizations from this study about the rest of the church re- lated sector of private higher education would be statistically inappro- priate and finally, 11) continued investigation of the factors influenc- ing the vitality of this group of colleges is necessary if both quality and survival are to be the results of the eighties. The study concluded with a series of recommendations for additional research and comments on the importance of informed and creative leadership if the mission of these colleges is to be accomplished in the decade ahead. This study is gratefully dedicated to my wife Nancy and daughter Andrea whose loving encouragement and prayerful support never waivered throughout the completion of this project and the degree. ii ACKNOWLEDGEMENTS A debt of gratitude is owed to the members of my Doctoral Advisory Committee including Dr. Erwin Bettinghaus, Dr. George Ferree, Dr. Lou Stammatakos and, particularly, Dr. Walter Johnson who served throughout as Chairman of the Committee and Director of the dissertation. Each of these, along with other members of the faculty of the Department of Administration and Higher Education, have contributed to the personal and professional development that made this project possible. Thanks are due to the presidents and administrators of Greenville College, Robert's Wesleyan College, Seattle Pacific University and Spring Arbor College for their assistance in making the necessary data available. Dr. Lawrence Schoenhals, Dr. David McKenna and Dr. William Shoemaker contributed both insight and encouragement throughout the project. Dr. Virginia (Fadil) Hodgkinson provided permission to utilize the Minter-Bowen studies as a part of this project. Dr. Richard Gottier and Dr. Don Petry of CBN University added encouragement by allowing me time away from regular responsibilities to work on the pro- ject. Mrs. Vicki Brassfield carried the major burden for the typing of the manuscript. Finally, a special word of appreciation is extended to Dr. Ellwood Voller for his personal support, compassionate direction and un- wavering commitment to the importance of Christian higher education. His example continues as a much valued ingredient in my own growth and development. iii TABLE OF CONTENTS Chapter 1 AN INTRODUCTION TO THE STUDY ............ . ................. ..1 A Statement of the Problem. ...... ....... ...... ..... ..............1 Private Colleges in the United States - Yesterday and Today.......4 The Church Related College - Yesterday and Today....... ...........8 An Overview of the Study..... ...... .............................14 The Church Related College Group. ...........................15 Overview of the Dissertation................................18 Chapter 2 REVIEW OF THE LITERATURE.... ..... .... ..... ..................20 IntrOductTOnoo 00¢ 00.0COO...IOOQQOOQOIOQIOQIIO. OOOOOOOO 020 Selected Studies on the Private Sector. .............. ........ ...21 The Financial Condition of the Private Sector......... ...... 31 Government Impact on the Private Sector.....................33 The Issue of Quality Distress...............................35 Summary of the Selected Studies on the Private Sector.......36 Selected Studies on the Church Related Sector....................37 Studies on Free Methodist Higher Education....... ....... .........45 The Schoenhals Study.. ...... ........................ ..... ...46 The McKenna Study. ... .... . . ............53 Additional Literature on the Denominational Colleges. ......59 Summary on Free Methodist Related Literature................62 Chapter 3 METHODOLOGY ...... . ........................ ............ ..... .63 Introduction. ..................63 The Identification of the Issues to be Studied. ..................64 The Data Collection Process. . ..............................69 The Collation and Assemblying of Data............................73 Statistical Methodologies Employed...............................74 Chapter 4 TRENDS IN FREE METHODIST HIGHER EDUCATION DURING THE DECADE OF THE SEVENTIESOOQOOOOOIOQOCOIOOIIQQOOIIQIQOQIQIOOOO77 Introduction to the Trends.......................................77 Financial Trends.................................................8O Current Fund Revenues........................................80 Current Fund Expenditures....................................87 Institutional Net Worth......................................93 Summary of Financial Trends..................................95 Enrollment Trends................................................97 Academic Program and Faculty Trends.............................104 iv Chapter 4 . ..continued. Discussion of the Trends.............. .............. . ..... . ..... 117 The Financial Question.. ........... .......... .............. 118 The Enrollment Question...................... ........ . ..... 120 The Condition Question.................... ..... . ........... 122 The Mission Question. ..................... ... .124 Concluding Comments on the Trends of the Seventies... ..... .128 Chapter 5 COMPARISON OF SELECTED TRENDS WITH THE PRIVATE COLLEGE SECTOR ......................... . ..... ........ ....... . ..... .129 Introduction to the Comparisons.. .............. . ..... ...........129 Financial Comparisons...................... .......... . .......... 130 Enrollment Comparisons.. ............ ............ ..... ... .......141 Academic Program and Faculty Comparisons ....... . ...... . ........ 143 Discussion of the Comparisons...........................:.......149 The Financial Comparison Question.................. .......149 The Enrollment Comparison Question..... ..... ....... .......152 The Condition Comparison Question..........................154 The Comparative Mission Question...........................155 Concluding Comments on Comparisons.... ..................... 156 Chapter 6 IMPLICATIONS FOR THE EIGHTIES .............................. 157 Introduction to the Implications .............. .... ..... .........157 Financial Projections. ..... ................................ .160 Enrollment Projections. .............. .... ..... .... ..... .........169 Academic Program and Faculty Projections....... ........... ......173 Implications of the Projections.................................177 Chapter 7 Implications for the Financial Future... ..................179 Implications for Future Enrollments........................180 Implications for Future Condition..........................181 Implications for Future Mission............................183 Concluding Comments on the Implications....................185 FINDINGS AND CONCLUSIONS...................................187 Introduction to the Findings and Conclusions....................187 Findings Of the StUdyOOO ..... COOOOOOOOIOOOOOIOIOQOIOOOOOIOOOIOI0188 Findings from the Literature...............................189 Financial Findings of the Study............................191 Current Fund Revenue Findings.........................192 Current Fund Expenditure Findings.....................194 Net Worth Findings and Summary........................195 Enrollment Findings........ .. . . Academic Program and Faculty Findings......................197 000......IQOIOOII'OOOIIQIOIQG Chapter 7 ....continued. Conclusions of the Study............ ..... ... .............. ......201 Recommendations for Additional Research.........................207 Recommendations for Financial Research........... ..... .....207 Recommendations for Enrollment Research....................209 Recommendations for Other Research.........................210 Concluding Comments.................................. ...... .....212 APPENDICES..... ............ . ........... .... ..... .....................214 APPENDIX A. GLOSSARY................................. ........... 214 APPENDIX B. CONSTITUTION AND BYLAWS, ASSOCIATION OF FREE METHODIST EDUCATIONAL INSTITUTIONS.. ........ . ..... ..216 APPENDIX C. DATA COLLECTION AND COLLATION GUIDELINES....... ..... 219 BIBLIOGRAPHY ............ . .............. .... ....... . .................. 224 BIBLIOGRAPHIC REFERENCES ....... ....................... ....... ...224 GENERAL REFERENCES.. .................... ....... ................. 228 vi LIST OF TABLES Number Page 1. A SELECTED COMPARISON OF THE FREE METHODIST COLLEGES, 1978/79 FISCAL YEAR ....... . ..... . ..... .... ........... . ............ 79 2. TOTAL CURRENT FUND REVENUES: 1973/74 - 1978/79 ......... . .......... 81 3. PERCENTAGE DISTRIBUTION OF SELECTED CURRENT FUND REVENUES 1973/74 - 1978/79 ..................... ....... ........... . ......... 82 4. PERCENTAGE DISTRIBUTION OF PRIVATE, OPERATIONAL GIFTS 1973/74 - 1978/79.. ........... ........ ..... . ...... ..... ........... 85 5. PRIVATE, OPERATIONAL GIFTS AS A PERCENT OF TOTAL REVENUES 1973/74 - 1978/79 ............. . ........ ...........................85 6. TOTAL CURRENT FUND EXPENDITURES: 1973/74 - 1978/79 ...............88 7. CURRENT FUND EXPENDITURES AS A PERCENT OF CURRENT FUND REVENUES: 1973,74 " 1978/7goaooooaacoaoooaoaooaooaoooooacaoooooo0.88 8. EDUCATION AND GENERAL EXPENDITURES: 1973/74 - 1978/79... ....... ...9O 9. EDUCATION AND GENERAL AS A PERCENT OF TOTAL EXPENDITURES 1973/74 - 1978,790000 oooooo oooooooaoooooooooaoaooa oooooooo a ccccccc 90 10. SCHOLARSHIP AND FELLOWSHIP EXPENDITURES: 1973/74 - 1978/79... ..... 92 11. PERCENT DISTRIBUTION OF SCHOLARSHIPS AND FELLOWSHIPS 1973/74 - 1978/79 ................ . ..... ............. ..... .........92 12. INDEBTEDNESS: 1973/74 - 1978/79.... ...... ......... ..... . .......... 94 13. ASSETTS: 1973/74 - 1978/79........................................94 14. NET NORTH AND SURPLUSES: 1973/74 - 1978/79........................95 15. OPENING FALL ENROLLMENTS: HEADCOUNT AND FULL TIME EQUIVALENTS: 1969/70 - 1978/79....................................98 16. PERCENTAGE DISTRIBUTION OF TOTAL HEADCOUNT: 1969/70 - 1978/79....1OO vii LIST OF TABLES ...continued 17. ACADEMIC AND INSTRUCTIONAL EXPENDITURES: 1973/74 - 1978/79 ....... 105 18. PERCENTAGE DISTRIBUTION OF ACADEMIC AND INSTRUCTIONAL EXPENDITURES: 1973/74 - 1978/79..................................105 19. UNDERGRADUATE DEGREES AWARDED: 1969/70 — 1978/79..... ........... .108 20. TOTAL LIBRARY EXPENDITURES: 1973/74 - 1978/79.............. ...... 109 21. LIBRARY EXPENDITURES AS A PERCENT OF SELECTED EXPENDITURES: 1973/74 - 1978/79..................................109 22. TOTAL VOLUME GROWTH IN LIBRARY: 1973/74 - 1978/79 ......... .......111 23. STUDENT/FACULTY RATIOS: 1974/75 — 1978/79........................113 24. FULL TIME EQUIVALENT FACULTY (ALL RANKS) 1973/74 — 1978/79.......113 25. WOMEN FACULTY: FULL AND PART TIME: 1975/76 - 1979/80... ........ ..114 26. PER CAPITA COST TO EDUCATE A STUDENT: 1973/74 - 1978/79..........116 27. CURRENT FUND REVENUES COMPARISONS: 1973/74 - 1978/79.. ..... . ..... 131 28. COMPARISON OF PERCENTAGE DISTRIBUTION OF CURRENT FUND REVENUES: 1974/75 - 1978/79.. ........ . ........ . .................. 132 29. COMPARISON OF TOTAL CURRENT FUND EXPENDITURE TRENDS 1973/74 - 1978/79... ........... ....... ........ .......... ..... ....136 30. COMPARISON OF EDUCATION AND GENERAL EXPENDITURE TRENDS 1973/74 - 1978/79 ........... . .............. . ..... .... ............ 137 31. COMPARISON OF STUDENT AID AWARDS ...................... ...........139 32. COMPARISON OF OPENING FALL ENROLLMENTS, FULL TIME EQUIVALENTS 1969/70 - 1978/79 ......... .... ..... .... ........ . ........... . ..... 142 33. INSTRUCTIONAL SUPPORT COMPARISONS: 1973/74 - 1978/79..... ........ 144 34. COMPARISON OF CHANGES IN NUMBER OF FULL TIME EQUIVALENT FACULTY: 1973/74 - 1978/79 ..... ....................... ........... 146 35. WOMEN AS A PERCENTAGE OF ALL FACULTY (FULL AND PART TIME) 1978/79 - 1979/80 ............. ... ..... ...........................146 viii 36. LIST OF TABLES ..continued STUDENT/FACULTY RATIOS: 1974/75 - 1978/79... ................ .....148 COMPARISON OF CURRENT FUND REVENUE PROJECTIONS 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 1979,80 ' 1984/8500900000aooan.cocoa-coocoocaoaooaocaooooaa ooooo .161 COMPARISON OF PERCENTAGE DISTRIBUTION OF CURRENT FUND REVENUE PROJECTIONS: 1979/80 ' 1983/84oooaaoooooooocaoooooaoocaoccooooaoolfiz PROJECTIONS OF PERCENTAGE DISTRIBUTION OF PRIVATE, OPERATION GIFTS: 1979,80 ' 1984/85...ooaaooocoaooaaoaoacoon-oo000164 COMPARISON OF CURRENT FUND EXPENDITURE PROJECTIONS 1979/80 - 1984/85................................................166 COMPARATIVE PROJECTION OF EDUCATION AND GENERAL EXPENDITURES 1979/80 - 1984/85................................................166 PROJECTION OF EDUCATION AND GENERAL EXPENDITURES AS A PERCENTAGE OF TOTAL EXPENDITURES: 1979/80 - 1984/85..............167 PROJECTIONS OF SCHOLARSHIP AND FELLOWSHIP EXPENDITURES 1979,80 “ 1984/85....0000 aaaaa cooaooooaoaoaaoaoooooaaaoooaaccent-167 PROJECTIONS OF NET WORTH: 1979/80 — 1984/85......................168 PROJECTIONS 0F OPENING FALL ENROLLMENTS: 1979/80 — 1988/89.......17O PROJECTION OF PERCENT DISTRIBUTION OF TOTAL HEADCOUNT 1979/80'1988/890. ..... OOOOOOOOOOQQIQOOOO.........QOOQOO'OOIOO‘0171 INSTRUCTIONAL SUPPORT PROJECTIONS: 1979/80 - 1984/85.............173 COMPARISON OF FULL TIME EQUIVALENT FACULTY PROJECTIONS 1979/80 ‘ 1984/85000aoo ooooooooo ooooooaoaaooaooaooaooaooaooaaoacol75 PROJECTION OF WOMEN AS PERCENT OF TOTAL FACULTY 1979/80 - 1983/84. ooooooo cocaooaooao.aooaooaoooaoovaaooaoooo ooooo 175 COMPARISON OF STUDENT/FACULTY RATIO PROJECTIONS 1979/80 ' 1983/84 cocoaoaoooaoooooaooaaooaoooaaoaacoaooaoccoo900.176 PROJECTIONS 0F PER CAPITA COST TO EDUCATE A STUDENT 1979/80 - 1984/85” oaooaaoaaaooooooooaoaaaoooooooooooooooooa0176 ix CHAPTER 1 AN INTRODUCTION TO THE STUDY A Statement of the Problem One of the major distinquishing factors of higher education in the United States is its unique, parallel system of public and private educational enterprises. 1 Throughout the last decade, seri- ous questions regarding the viability of the private sector of higher education have been raised, discussed and evaluated. Lyman Glenny, in his article entitled "Pressures on Higher Education" 2 presents the concern that the private, and particularly, denominationally related college, is in danger of extinction due to the rapid increase in educa— tional costs, the decline in the number of students going to college and the disintegrating interest in a purely liberal arts educational emphasis. While it has been some seven years since Glenny raised these major concerns, and while the demise of the private sector has not re— sulted as many would have predicted, serious questions remain for the private college as it moves into the decade of the eighties. Minter 1 Joseph Ben-David, Trends in American Higher Education, (Chicago: The University of Chicago Press, 1972), Chapter 1. 2 Lyman Glenny, "Pressures on Hi her Education”, The College and University Journal, Vol. 12, No. 4., September 1973) 2 and Bowen, commenting on the challenges that face the private college sector in the United States to-day, state: ....the independent sector is widely believed to be in serious jeopardy. There are many reports that it faces increasing competition from hundreds of new public institutions; that it has had to raise tuitions substant- ially year after year so that the tuition gap between independent and public institutions has widened; that its income from gifts and endowments has not kept pace with rising costs; and that the pool of available students is contracting. (3) Church related colleges may well be feeling the urgency more than their colleagues in the private sector. Pressures have intensified to delimit church influence in order to attract a wider spectrum of students and financial support. Government funds are often explored as a means to help alleviate fiscal problems; with these funds comes the potential of increased outside controls and requirements to drop religious distinctives long held by these institutions. Academic pro- grams are facing major changes to make them more attractive to students and employers. How have church related institutions responded to the enroll— ment, financial and academic program pressures of the seventies? What trends have developed during this period? How do these trends compare with what has happened in the overall private college sector? What are the implications for church related colleges in the decade of the eight- ies if these trends continue? 3 W. John Minter and Howard R. Bowen, Independent Higher Educa- tion, Fourth Annual Report: (Washington, D.C., National Association of Independent Colleges and’Universities, 1978,) p.1 3 The purpose of this study is to attempt to answer, within the limitations of the resources available, such questions currently being raised regarding the past and future of private, church related higher education in the United States. More specifically, the purpose of this study can be outlined by stating the following three objectives. First, to describe and analyze, through the use of appropriate survey and statistical methodol— ogy, the trends in finance, enrollment and academic programs and faculty during the decade of the seventies of a selected group of denomination- ally affiliated and supported colleges. Second, to compare the results of the analysis to a nationally, representative group of private colleges to ascertain the similarities and differences of the denominational group to the national data base. Finally, to discuss, through the use of appropriate trend line and regression analyses, implications for the future of the selected denominational colleges in areas of enrollment and financial support. Throughout the remainder of this chapter a step by step ration- ale is developed for such a study. An overview of the private college in the United States with an emphasis on historical foundations is presented,followed by a consideration of the history and present circum- stances of church related higher education. The chapter concludes with a general overview of the study and a description of the content of this dissertation. Attention is drawn to Appendix A where a glossary of terms and definitions is presented which will clarify terminology utilized throughout this study. 4 Private Colleges in the United States - Yesterday and Today For over two centuries the private liberal arts college dominated higher education in the United States of America. Founded primarily on the basis of religious concern and zeal, the early fathers of the republic turned their attention to educational activ- ities at all academic levels that would prepare the people of the "new world" for the challenges of settlement and expansion. For the past century, however, the private college has experienced comparative decline as the need for a broader base of educational experience and opportunity emerged. Today, private institutions, once the predomi— nant educational forum of the country, now enroll approximately one in five of all students involved in higher education. 4 The liberal arts colleges, however, continue to hold a place of considerable influence and even leadership. Clark Kerr, previous Carnegie Commission head, indicates, "They (private colleges) are the principle source of diver— sity and innovation. They set standards for concern with the welfare of the individual student. They serve as models for institutional autonomy."5 According to a Congressional Report published by the Controll— er General’s Office, approximately 1600 private colleges and universi- ties were operating in the United States during the academic year 1976—77. 4 Clark Kerr, introduction to Morris T. Keaton, Models and Mavericks: A Profile of Private Liberal Arts Colleges, (New York: McGraw-Hill Book Company, 1971) p.vii 5 Ibid. p.vii 5 These institutions enrolled nearly 2.4 million students ranging in size from 21 to a total student body of more than 30,000. Their functions varied from specialized, professional schools and liberal arts colleges to research and doctoral granting universities with extensive graduate and professional programs. The institutions could be found in all geo— graphic locations representing forty-nine of the fifty States in rural, suburban and urban areas. 6 An analysis of the private colleges in the United States during the decade of the seventies published by the National Institute of In- dependent Colleges and Universities 7 revealed that during the decade, 76 new institutions opened and 141 were merged or closed. Typically, the colleges that closed were small, church related, and coeducational in nature. Throughout the decade of the seventies, many challenges faced the private sector leading to the results noted above. Adding to the problems previously noted by Minter and Bowen which included increasing competition, climbing tuition rates, a slowing of private philanthropy and a decline in available students, were the problems of increasing government controls and intensified competition between the private and the public sectors. In reference to government interference, Bartlett 6 General Accounting Office. "Problems and Outlooks of Small Private Liberal Arts Colleges." Report to the Congress of the United States by the Controller General. (Washington: Aug. 25, 1978) 7 Virginia Ann Fadil and Nancy A. Carter, 0 enin s 'Closi ‘s Mergers and Accreditation Status of Independent Colleges aha UOIY§F51%19§- Winter 1970 through Summer 1979,(Washington: National Institute of Inde— pendent COTTeges and Universities, July 1980.) 6 Giametti concluded that private higher education may well become one 8 of the most highly regulated industries in contemporary society. In response to the observation of increased competition between the public and private sectors, Cameron West commented, ...today there is evidence of divisiveness with demands from some areas of the public sector that state aid to private higher educational institutions be reduced or even eliminated. In short, there was no divisiveness between the public and private sectors when they were not in competition for state dollars. (9) Such observations about the trends of the seventies led many, such as Earl Cheit, to conclude that the decade ushered in the age of the "new depression in higher education" 10 particularly for the private sector. Government research tended to reinforce this pessimistic view of the decade and the future given the projected increases in pay- roll taxes, energy costs, hyper-inflation and enrollment declines for 11 the eighties. While other studies found most college and university 8 Bartlett A. Giametti, "The Private University and the Public Interest", Speech given before the Department of Health, Education and Welfare, (Washington, D.C., March 15, 1979). 9 Cameron West, "The Public Interest in Private Colleges and Universities", Speech presented at the Society for College and University Planning - Long Range Planning Conference entitled Public Policy and the Rglztionship of Private and Public Higher Education, (New York: Feb. 7, 1 10 Earl F. Cheit, The New Depression in Higher Education, (New York: McGraw-Hill Pub., 1971) 11 General Accounting Office, "Problems and Outlooks...“ 7 officials of the private sector guardedly optimistic expecting that the better institutions to adapt and adjust, 12 the general tone for the seventies and the eighties has been one of discouragement over the anticipated declines and retrenchments. In the light of what has happened in the seventies and what might happen in the eighties, is it reasonable to expect that the private sector of higher education can continue to survive? Minter and Bowen conclude that it must survive. Private higher education is an important...even indispensable...part of the higher educational system. It adds diversity, it offers competition to an otherwise all embracing public system, it provides a center of academic freedom removed from political influence, it is deeply committed to liberal learning, it is concerned for human scale and individual personality, it sets standands, it provides educational leadership, and it saves money for taxpayers. Not every private college or univer- sity achieves all of these results, but enough institutions do achieve some of them to make sur- vival of a strong private sector a major goal in the broad public interest. (13) 12 Ibid. 13 Minter and Bowen. Independent...p.1 8 The Church Related College: Yesterday and Today Having briefly addressed the nature, condition and general value of the private sector of American higher education, we now turn to a consideration of what many believe to be the most vulnerable and endangered subset of the private college segment...the small, church related, liberal arts college. The church related colleges of this country fit primarily under the Carnegie Commission classification of institutions as "Lib- eral Arts Colleges II". 14 They tend to be under 1200 students in enrollment (some are larger but most significantly smaller), primarily liberal arts oriented in curricular emphases with few professional or technical programs and visibly affiliated with a particular religious denomination. The affiliation of these schools may range from direct control and supervision by the sponsoring religious body as is true of institutions connected with the Wesleyan, Nazarene and other conser— vative denominations, to those endorsed by, but independent of, a re- ligious body such as the United Methodist and Episcopalian denomin— ations. Most church related institutions maintain their affiliation with the supporting denomination through an agreed upon compliance of doctrinal, liturgical or behavioral guidelines established by the denomination and accepted by the institution. 14 Carnegie Commission on Higher Education, A Classification of Institutions of Higher Education, (Berkley, California: Carnegie Commission on Higher Education, 1973) 9 Private higher education today in the United States owes much of its history to the activities of denominationally related in— stitutions. Robert Pace, in his book entitled Education and Evangel- j§m_indicates: Evangelical Christianity was one of the major forces in the development of higher education in America and, indeed, in the spread of education throughout the world. The Ameri- can colonies were a refuge for persecuted Puritans. John Harvard, a puritan land owner, bequeathed a sum of money toward the pious work of building a college...The College of William and Mary was established with the avowed purpose of furnishing a seminary for ministers of the gospel and for training youth in good manners.(15) Pace traces the development of higher education through the three centuries of America's history illustrating how the denominations of the Christian faith were responsible for the development and promotion of an education that was both religiously moral and pragmatic in its presentation. Some of the major institutions, still in existence today, with a denominationally related starting point include Harvard, Princeton, Yale, William and Mary, Dartmouth, Amherst, Oberlin, Western Reserve, Antioch, Hiram, Wittenberg, Heidelberg and numerous others. Denominations active in the founding of such institutions have included the Church of England (Episcopalian), Baptists, Congre- gationalists, Lutherans, Methodists, Presbyterians, United Brethren, 16 Reformed and numerous smaller conservative denominations. 15 Robert C. Pace, Education and Evangelism: A Profile of Protestant College§_(New York: McGraw—Hill Book Co., 1972) pg. 9 16 Ibid. pg. 10 10 Pace shatters the contemporary misunderstanding of the purposes of denominationally related institutions by stating "Thus, far from being 17 anti-intellectual, evangelism provoked educational enterprise". Pace's own summary brings us to the current state of affairs of denom- inationally related colleges in America. The history...reminds us of a significant strand in the development of higher education in the United States and of a powerful current in the American character. Within the past 20 years higher educa- tion has become so dominantly secular that many of us tend to forget about, and perhaps some of us are unaware of, the strength of these Protestant antecedents. From the mid-seventeenth century to the twentieth century, higher education was mainly private and Protestant. The 1950 census showed, for the first time, that the number of students en- rolled in public institutions reached equality with the number enrolled in private ones. In the 20 years following 1950, as enrollments grew from 3 million to 8 million, the growth was primarily in the public sector...so that now the public sector outnumbers the private by a factor of nearly 3 to 1. Moreover, since the private sector includes Catholic and nonsectarian colleges as well as Protestant colleges, the proportionate share of total students that can be claimed by Protestant colleges today is approximately one-tenth.(18) Today the small, church affiliated college, is facing the same types of crises that its colleagues in the private sector are confronting. As of 1975/76, the small, private liberal arts colleges have experienced some of the severest financial crises in the history of the movement. Extensive deficit operations, heavy borrowing to cover current operating deficits and postponement and delinquency in debt service have resulted from insufficient revenues attributable to T17 Ibid. p. 10 18 Ibid. p. 14-15 11 declining enrollments, inflation, rising costs and a lack of prompt 19 and effective administrative controls. Cameron West's analysis of the private colleges in Illinois reinforces the current challenges facing such schools and adds another dimension. ...it was discovered that many private institutions had financial problems and that stringencies were manifested in deferred maintenance of buildings, inadequate salaries and other deficiencies. These institutions were in less danger of total collapse than they were in declining in quality to a level that would not be attractive to potential students.(20) This concept of "quality distress" as set over against "financial distress" has become an increasingly dominant theme in con- cerns expressed regarding the private, and particularly church related, colleges during the seventies. Richard G. Wynn, in his study of 21 forty-eight liberal arts colleges has much to say about this aspect of "quality distress". In this report Wynn noted that the accelerating expenditure growth that outstripped income growth producing larger de- ficits in 1969/70 had reversed itself as of 1973 with expenditure growth declining rapidly. These expenditure trends suggest that "quality distress" may well have replaced "financial distress" in the decade of the seventies. He indicated that survival may become the dominant operating principle of the small college with quality deterioration a byproduct. 19 General Accounting Office, "Problems and Outlooks." pg. i 20 Cameron West, Public, p.12 21 Richard G. Wynn. At the Crossroads. (Ann Arbor, Mi.: The University of Michigan, Center for the Study of Higher Education, April 1974 12 Increased vulnerability and potential failure are the first dangers of these expenditure trends. Another danger, more subtle and pernicious for higher education, can be obsured by an over emphasis on traditionally analyzed data. We reach an unfortunate equilibrium where few colleges run deficits, but many more undergo a largely invisible loss in the quality of their educa- tional program. Financial distress may give way to quality distress. (22) Wynn goes on to provide a fuller definition of the concept of quality distress and presents an alternative approach to the analysis of fis- cal data to indicate the occurence of this phenomenon that will be discussed later. David L. McKenna, in a speech given to the Association of Free Methodist Educational Institutions, summarizes the concerns of the small, private, church related institutions under five basic headings: 1. Inflationary demands that place a major burden on faculty salaries, tuition, utilities and deferred maintenance Increased federal pressures limiting tax credits and imposing "sunset laws" on charitable giving Decreasing student aid by requiring larger institutional shares for qualification Continued decrease in the quality of education as attention is focused on economic survival and . Changing relationships between the colleges and their supporting denominations. 23 01-90079 In the light of these challenges should the church related college survive in the decade of the eighties? Earl McGrath affirms that such colleges should survive because they can potentially achieve 22 Ibid. p.16-17 23 . David L. McKenna: "Implications for Free Methodist Colleges in the Decade of the Eighties", Keynote address given to the annual Ineeting of the Association of Free Methodist Educational Institutions, (Orlando, Florida, Feb. 29, 1980) 13 certain desireable objectives more effectively than larger insti- tutions. 24 The small college can often offer clarity and singleness of purpose by placing limitations on its objectives, curriculum and students. The primary aim of the small college can be the education of students for a fuller personal life and sensitive participation in a democracy. The small college is uniquely equipped to meet the indi— vidual developmental needs of its students. Gannon states that the church related, religiously oriented college can provide a unique educational perspective. "Aware of the cultural history of both the Church and the country, a Christian college is in an excellent position to be a critic, prophet, and historian of Christian culture and of the interplay of religion, politics, culture and technology." 25 Gannon goes on to define Christian education not as the "Church teaching" but the "Church learning". Christian education, she emphasizes, is not the attempt of a church to impart its peculiar doctrines or theology but a context in which those committed to a Christian life view can learn and explore all truth. William Koelsch also answers in the affirmative about the need for the survival of the Christian college and adds, "The survival of small, religiously oriented colleges will depend on the capacity 21 Earl J. McGrath. "What Does the Small College Have to Sell?", (Washington: Council for the Advancement of Small Colleges, Aug. 5, 1968) 25 Ann Ida Gannon. "The Future of the Church Related Colleges: The Impact of Vatican II", Liberal Education, Vol. 58, (May 1972)p.274 14 of their leadership to adjust and fashion programs both practical and imaginative". 26 As the pressures of inflation, government control, charitable giving, and quality distress continue can the Church related college survive? How have church related institutions responded to the enrollment and financial pressures of the seventies? What trends have developed during this period? How do these trends compare with what has happened in the overall private sector? What are the impli— cations for the denominationally affiliated college in the decade of the eighties if these trends continue? Given the factors considered, is it reasonable to expect that these colleges have the resources necessary "to adjust and fashion programs both practical and imagin- ative"? An Overview of the Study It is in response to this myriad of seeming imponderable questions regarding the private, church related college that the direction and incentive for this study emerged. Having provided a rationale for the importance of such a study, attention is now turned to the details surrounding the design and development of a research project that might address and provide some direction for the investigation of data that could meaningfully comment on these questions. In this final section of the introductory chapter, details surrounding the development of a study of a selected group of church related colleges in presented. A discuss- ion of the rationale for selecting the four, accredited liberal arts 26 William Koelsch. "Should the Christian College Survive?", Soundings, Vol. 52, (Summer 1969.) p.232 15 colleges of the Free Methodist Church is given followed by a brief con- sideration of the reasons for selecting the Minter-Bowen studies as the data base for the comparison of the denominational group to a represent- ative private college sample. The three objectives of the study are once more presented to provide a reminder for the direction of the study; first, to describe and analyze the trends in finance, enrollment and academic program and faculty that emerged in the Free Methodist colleges during the decade of the seventies. The second purpose is to compare these trends to similar trends in the national private college sample represented by Minter and Bowen; and third, to offer some pro- jections in these areas for the decade of the eighties should these trends continue. The Church Related College Group The selection of an adequate set of church related colleges was made on the following criteria. First, the colleges must have a specific relationship to an established denomination in the United States. Second, the church denomination should have a history of active support of its related institutions. Thirdly, the colleges should be fully accredited by the appropriate Regional agencies, be liberal arts in emphasis and have a substantial record of academic offerings and program performance. Finally, the total number of qualified institutions in the denomination must be large enough to make the study significant from a statistical vantage point but not so large as to make the study unmanageable. The Free Methodist Church of North America with its four fully accredited four year liberal arts colleges was selected on the basis of the criteria outlined above. A major factor in this choice was the decided advantage these schools 16 presented due to the researcher's familiarity with the institutions and their administration. From the denomination's inception in 1860, there has been a commitment to the importance of strong, church affiliated liberal arts institutions for the training of both clergy and laity. The Free Methodist Church was among the first to establish coreducational, liberal arts institutions according to the research of Lawrence Schoenhals. In his study, he cites numerous references from the early church "Minutes". Two will be sufficient here to catch the flavor of the church's commitments. No church can meet its obligations without making provisions for the education of children under her care. Our church needs one or more literary institutions... Education is the handmaid of true religion. Ignorance and superstition go hand in hand...Without education, it is impossible for us to accomplish our mission. (27) Out of this early emphasis, the Free Methodist Church devel- oped a number of higher educational institutions. After a number of years of additions, closing and consolidations, four schools remain that meet the criteria for inclusion. The following enumerates these colleges: 27 I Lawrence Russell Schoenhals, "Higher Education in the Free Methodist Church in the United States: 1860—1954," (A Ph.D. thesis, University of Washington, 1955,) p.10 17 ACCREDITED LIBERAL ARTS COLLEGES AFFILIATED WITH THE FREE METHODIST CHURCH Name and Location Date Founded 78/79 Enrollment 1. Greenville College 1892 870 Greenville, Illinois 2. Robert's Wesleyan College 1866 635 North Chili, New York 3. Seattle Pacific University 1891 2300 Seattle, Washington 4. Spring Arbor College 1873 800 Spring Arbor, Michigan A fifth school, Azusa Pacific College, is loosely affiliated with the Free Methodist Church. It was originally Los Angeles Pacific College founded in 1899; today, it is a merger of two additional schools representing the Church of God and the Wesleyan Church. Since it is not a full member of the Association of Free Methodist Educational Institutions and since it was not possible to collect all of the necessary data for the study from this school, it was deleted from the project. Appendix B provides a copy of the most recent "articles" of the Association of Free Methodist Educational Institutions. The National Private College Sample While there are a few national studies that have been done on the private college sector, the Minter—Bowen study entitled Independent Higher Education,28 represents the best data base for the comparison purposes of this study. The report covers data on a stratified sample of one hundred institutions representing all parts of the independent 28 John W. Minter and Howard R. Bowen, Independent Higher Educa- tjpn: Fifth Annual Report. (WaShington: National Association of Indepen- dent Colleges and Universities, 1980.) 18 sector except two year colleges, research universities and autonomous professional schools. The reports, beginning with the years 1969/70, cover a wide variety of topics including comprehensive information on enrollments, financial stability, academic programs and numerous other indices of private college health. It is important to note that none of the four Free Methodist related colleges are included in the Minter— Bowen data base. Overview of the Dissertation Chapter 2 contains a review of the relevant literature applicable to the study under consideration. The first two phases of the review consider literature on the private sector as a whole and on the church related subset in particular. Most of this review will be limited to that which was published during the decade of the seventies. The third section deals with literature and research on Free Methodist higher education and its individual institutions. Histories, dissertations, theses and some "self—studies" will be in- cluded. 19 In Chapter 3, the methodology employed in the study is outlined with an emphasis on the identification of major issues, the data collection process and the collation and statistical manipulation of the data. In Chapter 4, the major trends in finance, enrollment and academic program and faculty of the colleges as a group are identified while in Chapter 5 these trends are compared with the national sample. Discussion of the results of each will be provided at the conclusions of the chapters. In Chapter 6 projections for the eighties based on the trends of the seventies are presented and implications, particularly in the area of church support and quality distress, are inferred. In Chapter 7, results are summarized and conclusions drawn; emphasis is placed on the limitations of the study and recommendations for future research are offered. CHAPTER 2 REVIEW OF THE LITERATURE Introduction In this chapter, a review of the literature related to the study will be presented. The published materials on the past, current circumstances and future of private higher education is voluminous. In the first section of this chapter, only literature published during the late sixties and throughout the decade of the seventies will be consid— ered. Due to the smaller volume of material available on church related higher education, particularly that which addresses the development and future of Protestant institutions, a broader time frame of literature will be considered. Major emphasis, however, will be on those articles, books and other studies which concentrate on the church affiliated col— lege during the past decade. The final section of this review will cover the significant materials published on Free Methodist higher education throughout its 114 year history. Chapter 1 contained numerous references and citations from literature that addressed the private and church related sectors. The purpose for inclusion of such material in that chapter was to provide a framework for the study of a particular denomination and its related colleges. Reference will be made to some of those sources already quoted; however, for the most part, this chapter will address those ma~ terials not previously considered. 20 21 Selected Studies on the Private Sector General Resources for the Study of the Private College: A significant debt of gratitude is owed by all who would re- search the field of private higher education to the Council for the Advancement of Small Colleges for the publication of Askew's The Small 29 College: A Bibliographic Handbook. This publication contains a compre- hensive bibliography devoted primarily to the private sector in general and the small, private college in particular. Askew has culled out of the research between 1956 and 1971, some 575 articles, papers, books and dissertations that address the major concerns of private college presi- dents as identified through a 1968 C.A.S.C. survey. Groupings include general studies on the small college, curriculum and philosophy, pedagogy, libraries, faculty, students, governance, administration, finance and budgeting, long range planning, physical facilities and consortia. This publication provided the starting point for a survey of the literature for both the private and church related sectors. It helped delimit the massive materials on the private sector at large to those items that spoke to the small college as a subset of the private sector. A suggest- ion for future research would be the updating of the Askew study to in- clude those materials published during the decade of the seventies. 29 Thomas A. Askew, The Small College: A Bibliographic Handbook, (Washington: Council for the Advancement of Small Colleges. 1973) 22 A second major source of information and bibliographies was found in the 1978 Congressional Report entitled "Problems and Outlooks of the Small Private Liberal Arts Colleges." 30 In this report, the major problems and future outlooks of the small college are examined. The study addresses the small, liberal arts college as the major component of the private sector that seems to be in the greatest trouble financi- ally and educationally. The causes for the current dilemma facing these schools is attributed to a pattern of declining enrollment growth, the increasing tuition gap between the public and the private sectors and the growth of the community college systems. The major focus of this study is on the financial crises facing these smaller institutions. Efforts to improve the financial condition are discussed and steps for increasing revenues, reducing expenditures and improving the financial situation are offered. The major conclusion of the report is that from 25% to 35% of private higher educational institutions are facing financial difficulty; as a result, it was recommended that the Congress periodically review, through the Secretary of Education, these institutions as a group to assess the general financial condition of this important sector of higher education. The most valuable aspect of the report, from the per- spective of this study, was the glossary and summary of federal programs to assist post secondary education. 30 General Accounting Office, "Problems and Outlooks..." 23 Earl Cheit's study entitled The New Depression in Higher Edu- 31 " 32' ' cation-Two Years Later is a follow-up to his previous study of 41 colleges and universities during the decade of the sixties. That pre- vious study concluded that, at the end of the sixties, higher education, particularly in the private sector, had moved from the "Golden Years" of prosperity into a period of entrenchment and no growth. Two years later, the follow-up study of the same group of colleges revealed a condition of fragile stability. The conclusion was drawn that private colleges seem to have adjusted more quickly and adequately than their public counterparts. Two major developments noted by Cheit during the follow—up included the more central role accorded to administration in the new environment and the securing of change by the process of epbstitutipp_ rather than through growth. lkilight of the first, governance and de- cision making was shifting from a participative approach which actively involved faculty, students and other members of the campus constituencies to a more centralized, administration-based approach. The second change showed that, while the colleges were able to adapt to some of the changes of the academic environment, adaptation was primarily occuring through the elimination of some programs in order to implement new ones rather than through the addition approach noted in the sixties. 31 Earl F. Cheit. The New Depression in Higher Education — Two Year? Later, (Berkley, Calif: Carnegie COmmission on HigherTEducatTon 1973 32 Earl F. Cheit. The New DepresSiOn in Higher EducatiOn, (New- York: McGraw-Hill Publishers, 1971)" it . 24 Implications for qpality distress were hinted at in the study. While it appeared that the private colleges had begun to readily adapt to the seventies, serious problems would result if income support in particular did not improve. "If this level of income support for higher education is not achieved (that is at least 2.5% growth per year) the crisis nature of the problem will reappear. Then, given the deep level of expenditure cuts, the postponed faculty salary adjustments and the deferred mainten- ance, the stakes will be very high." 33 Concerns over the financial and enrollment factors, caused many to predict the merging and/or closing of a number of private colleges during the decade. The National Institute of Independent Colleges and Universities study published in July of 1980 revealed that 141 private colleges failed to survive the decade of the seventies. 34 During the first half of the decade, 69 private colleges opened; during the last half, only seven. Among the 141 private institutions that were closed during the period were included 57 four-year colleges, 45 two-year colleges and 39 specialized institutions. The colleges that closed were typically small, church related and 62% were coeducational. Of the 78 church related institutions that closed, 24 were seminaries or other special purpose religious schools. The study showed that 47 schools had merged with other institutions; two-thirds of the mergers were church related institutions with 64% of these having less than 500 students. 33 Cheit, The New Depression....Two Years Later. p.72 34 Virginia Ann Fadil and Nancy A. Carter. Openings, Closings, Mergers and Accreditation Status of Independent Colleges and Universities Winter 1970 through Summer 1979,(Washington D.C., July 1980.) NationaT' Institute of Independent Colleges and Universities 25 Nineteen of the institutions shifted from private to public control. Of the 358 institutions that became either accredited or candidates for accreditation, 168 were four-year institutions. While a sizeable num- ber of private institutions did not survive the decade, it appears that the private sector, as a whole, did much better during the decade than expected. Most, at the close of the period, might be catagorized as "leaner but stronger". The Carnegie Commission report Three Thousand Futures confirmed the strength of the private sector by reporting that during the decade the student full time equivalent for the private sec- tor increased about 16% and that spending per student, believed to be an indicator of strength and quality, held at one third more per student credit hour than in the public counterparts. 35 The most comprehensive and significant of the research done during the decade of the seventies on the private sector overall are the 36 Minter-Bowen studies entitled Independent Higher Education. The~studies, begun under the sponsorship of the Association of American Colleges, are based on a stratafied sample of 127 accredited institutions representing a universe of about 1,155 private colleges and universities. 35 Carnegie Council on Policy Studies in Higher Education, Three Thousand Futures: The Next Twenty Years in Higher Education,(San Francisco: Jossey-Bass Pub., Inc., 1980.) p.p. 10-12 36 John W. Minter and Howard R. Bowen. Independent Higher Educa- tion a series of five annual reports published by the National Institute of Independent Colleges and Universities, Washington D.C. with the most recent being "Fifth Report on Financial and Educational Trends in the Independent Sector of American Higher Education", 1980. 26 All parts of the private sector are represented except for autonomous professional schools such as seminaries and music conservatories. The sample was drawn to insure representation from four broad regions of the country and from various sizes of institutions as measured by en- rollments. The major sources of data for the study came from copies of reports submitted by the selected institutions to the Higher Education General Information Survey (HEGIS), salary information as submitted to the American Association of University Professors, audited institutional financial statements and supporting schedules and the Voluntary Support surveys as submitted to the Council for Financial Aid to Education. In the analysis of the data, emphasis is given to indicators reflecting changes over time in the condition of the independent sector. The basic question to be answered is: In what ways are the independent colleges and universities gaining ground, holding their own or losing ground? The analysis is in three parts: (1) consolidated trends for all institutions; and (2) com- parative trends for different types of institutions; and (3) estimates of the overall condition of each institution included in the sample. (37) The analysis offered speaks to enrollment and admissions, faculty and other staff, educational program content and quality, operating revenues and expenditures, undergraduate student financial aid, assets liabilities and net worth, selected financial ratios, an analysis of the condition of institutions individually and some summary conclusions about the in— dependent sector as a whole. Since the research project represented by this dissertation uses a large segment of Minter-Bowen data, time will be spent in discussing the various sections of their study. 37 Minter-Bowen. Independent...p.3 27 The report asserts that "perhaps the most conspicuous mark of a healthy college or university is the capacity to attract and hold 38 students". In the section on enrollment and admissions, the study shows that throughout the period from Fall 1969 to Fall 1979, the pri- vate sector showed a slow, upward trend in enrollments. Admission of undergraduate students has held fairly steady. A slight decline in the number of entering freshman as a percentage of admissions offered was noted. The size of the admission's staff has continued to increase with the rate of attrition of admitted students leveling off at about 10% The overall enrollment situation remains uncertain, particularly in light of the demographic changes due in the 1980's. However, up to the very beginning of that decade, the independent sector did on the whole maintain its position in both the numbers and academic qualifications of its students. The aggregate figures, however, obscure wide variations in the experiences of individual insti- tutions. (39) The conclusions offered by Minter and Bowen, in the area of faculty and staff for the period, showed that the size of faculty is keeping pace with enrollments and perhaps moving slightly ahead. In the salary area, faculty have lost about 12% of their purchasing power over the decade due to inflation and the inability of institutions to raise salaries at a rate consistent with the cost of living index. The percentage of part time and women faculty has grown with the percent of tenured faculty drifting slowly upward. The number of faculty separa- tions has decreased while the number of new appointments has edged upward 38 Ibid p.8 39 Ibid p.19 28 slightly. Administrative staff, has increased dramatically during the period. Wages and salary of administrative and general services staff have risen more rapidly than those of the faculty. 40 Educational program content and quality has always been a difficult factor to evaluate. Considerable effort was made by the re- searchers to identify educational trends as important indicators of in- stitutional progress. Data collected for this section was based on a survey methodology that asked various individuals at selected institu- tions to comment on aspects of the academic program. Qualifications, competence and performance of the faculty was judged to be generally im- proving. The academic potential of students measured by SAT scores and rank in class data seemed to be steady over the period. The independent sector appears to have been involved in considerable innovation particu- larly in methods of instruction. A large majority of institutions, according to their presidents, seem to be holding their own or gaining ground slightly in finances, academic excellence and student services. The expectations for the next several years were overwhelmingly opti- mistic. "The general inferences from the reports is that the private sector is not deteriorating significantly in its overall performance..."41 The next phase of the study considered the trends in operating revenues and expenditures for the period 1973-74 through 1978-79. 40 Ibid p. 21-34 41 Ibid p. 43 29 Changes in current fund revenues and expenditures were analysed and the percentage distribution of educational and general expenditures for 1974- 75 through 1978-79 noted. The following tentative conclusions about the financial position and progress of independent higher education were offered: 1. During the period, current revenues approximately kept pace with the combined effects of inflation and enrollment growth....However, this allowed little room for the improvement of faculty and staff com- pensation beyond the cost of living increases...More- over, there was little room for improvement in educa- tional programs and quality except as these could be squeezed into constrained budgets. 2. The redistribution of revenues from various sources remained relatively constant over the past five years. 3. The allocation of expenditures among various purposes has been stable and suggests that annual budgeting occurs on the basis of across-the-board increases. 4. The financial situation in recent years as revealed by data on current fund has changed, if at all, marginally. There are, however, a few signs of greater stringency but few, if any, indications of improvement. There has however, been no financial debacle. (42) "A major factor in the staying power of the independent sector of American higher education has been the growth of funds for student financial aid." 43 The data reveals that the decision of federal and state governments to become massively involved in financial aid to students has enabled the private sector to stabalize institutional ex- penditures for student aid and thus reduce the percentage of dollars from unrestricted funds for this purpose. 42 Ibid. p.p. 69-70 43 Ibid. p. 71 30 While Minter-Bowen indicate that these recent developments have, on the whole, been favorable for the private sector there is no doubt that in the area of financial aid in particular, the private college has greatly increased its dependency on the government for funding support. Since the largest percentage of tuition revenues for the individual student comes from financial aid, the private sector faces major enrollment and finan- cial declines should this aid be reduced or eliminated. The analysis of assets, liabilities and net worth of the pri- vate sector revealed that: 1. Over recent years, the growth in assets did not keep pace with inflation. 2. Liabilities increased somewhat more rapidly than the book value of assets. 3. The slow, steady trends toward increasing fund balances accelerated in recent years from a rate of about 5% per year to 6 to 7% but did not keep pace with inflation. 4. The changes in assets, liabilities and net worth were small during the past two years. Our main impression is one of stability. (44) The study concludes with a suggested plan and method for pro- viding an analysis of individual institutions through the use of a ser- ies of financial ratios which, when applied, may help measure such im- portant characteristics as financial independance, debt burden, liquidity, adequacy of revenues and assets. The study concludes with the assertion that while the independent sector as a whole is relatively stabilized, the greatest financial strengths lie in the group of colleges described as Liberal Arts Colleges I and the least, with the Liberal Arts College II. Most of the private, church related colleges fall into the second catagory. Deferred maintenance of both the physical and the human capi- tal of the private sector as a whole is the greatest concern expressed by Minter and Bowen for the future. 44 Ibid p.86 31 The Financial Condition of the Private Sector: Having looked at some of the resources selected for an over— view of the independent sector, attention is next turned to some speci- fic studies that speak primarily to the financial condition of the pri- vate college. "Numerous studies have been conducted or planned which seek to determine why colleges and universities are in financial diffi- culty. Many studies conclude that all of higher education has suffered financial distress but that the private institutions have been the hard— est hit." 45 According to a report given to the Congress by the Controller General's Office, during 1975-76, small private liberal arts colleges (Carnegie group Liberal Arts Colleges II) faced their most severe finan- cial situation. Extensive deficit operations, heavy borrowing to cover current operating deficits and delinquencies in debt service were the result of insufficient revenues due to declining enrollments, inflation and rising costs and a serious lack of prompt and effective administra- tive controls. 46 William Jellema's study 47 on the private college sec— tor early in the seventies documented what perceptive viewers of higher education had feared...that much of private higher education had been undergoing a financial crisis of grave proportions. Jellema concluded that some institutions were still riding out the crisis, most would ride through it if it didn't last too long and still others had succumbed or would soon succumb to it. 45* "Problems and Outlooks" pg.i 46 Ibid pg. 1 47 William W. Jellema From Red to Black, (San Francisco: Jossey- Bass Pub., 1973) 32 Some specific regional studies of the financial conditions of the private sector showed that the financial crisis was a generalized one across all regions and states. Cameron West, in a detailed analy- sis of the private colleges in the State of Illinois discovered that: ...many private institutions had financial problems and that the stringencies were manifested in deferred maintenance of buildings, inadequate salaries, impoverished libraries and other deficiencies. These institutions were in less danger of total collapse than they were in declining in quality to a level that would not be attractive to the potential student. (48) In response to these obvious concerns about the financial future of the 49 independent sector William Arthur designed an instrument to help translate educational objectives into financial strategies. As resources become more scarce, Arthur emphasized that decisions on what to fund and not fund will have to be made on sound strategies which have their found- ation in the overall educational objectives of the institution. His three stage financial planning model is applied to five private college and university settings. Numerous other studies reinforce the concern that, while the private college was generally able to survive during the decade of the seventies, financial pressures were great enough to give major concerns about what would be left to cut in the decade of the eighties if revenue, inflation and expenditure trends were to continue. 48* Cameron West. "The Public Interest in Private Colleges and Universities", speech presented at the Society for College and University Planning-Long Range Planning Conference: PPublic Policy and the Relation— ship of Private and Public Higher Education" (New York City: Feb.7,1974) p. 12 49 William Arthur. "The Development of a System of Administering and Measuring Strategic Expenditures in Private Colleges", (Lynchburg, Virginia: Lynchburg College, 1969) 33 Government Impact on the Private Sector: At the 1978 meeting of the American Association of Presidents of Independent Colleges and Universities, the role and impact of the 50 Federal and State governments on the independent sector was discussed. Major focus, at that meeting, was on the conflicts faced by Bringham Young, Academy of the New Church, Grove City College, Mississippi College and Hillsdale College with the various federal regulations including equal opportunity, housing, Title IX and others. The discussion center- ed around the concern of increased federal intervention on campuses that received and utilized government funds. The mood of the conference was in direct contrast to the attitude of presidents in 1969 of 31 private colleges and universities in Ohio who saw federal funding as a desire- able means for supplementing financial income. 51 Concern over the loss of freedom, so crucial to the operation of the private college, had re— placed the former desire to have government support financially. As government resources decline or are unable to keep up with the demand, increasing competition between the public and private sectors for available funds has intensified. As was noted in Chapter 1, Today there is evidence of divisiveness (between the public and private) with demands from some areas of the public sector that state aid to private higher education institutions be reduced or eliminated. On the other hand, many private insti— tutions are requesting increased financial aid from the state, especially as traditional private sources of funding are limited and as student tuition charges reach maximum limits. In short, there was no divisiveness between the public and private sec- tors when they were not in competition for State dollars. (52) 50 American Association of Presidents of Independent Colleges and Universities. Private Higher Education: The Job Ahead, Annual Meeting, Volume 7, (Scottsdale, Arizona. Dec. 1978)’ ' ’ 51 Hugh Lee Thompson, "Presidents of Liberal Arts Colleges and Federal Aid, A Study of College Administrative Financial Decision-making“, Ph.D. dissertation, (Case Western Reserve University, 1969.) 52 Cameron West, p.2 34 The private sector has had to increase its dependance on the state and local government much to its own detriment. However, as Giametti points out: The fault of this is not really the government's. Private colleges and universities have never adequately educated government or any number of other segments of society, in the nature of educational institutions whether public or private, while it is in the nature of government to assume that all institutions in a society ought to look like governments. (53) Private colleges are beginning to realize, as a result of the financial pressures and government regulations of the seventies, that they can not rely on government to save them from disaster. The best role for government, from the private sector's perspective according to 54 Bolling is to explore avenues of direct aid to students and tuition tax credits. He further suggests that the hope for the private sector lies not with government but with improved educational programs, improved financial management policies and a re-examination of the role these institutions should play in changing and improving public policy for the independent sector. 53 Bartlett A. Giametti. The Private University and the Public Interest, speech given before the Department of Health, Education and Welfare, (Washington D.C., March 15, 1979) 54 . Landrum R. Bolling. "Possible Solutions for the Financial Cr1ses of the Private Sector of Higher Education", (Washington: American Association of Higher Education. 1970) 35 The Issue of Quality Distress: Before concluding this overview of some of the selected literature on the private college sector, one additional theme needs to be discussed...the issue of "quality distress". It was noted earlier that West indicated that the private college seems less in danger of total collapse and more likely to face the major issue of declining quality. Students often choose the private sector for reasons of qual- ity, be it academic, social, cultural or spiritual. If the stringencies faced by the private college have an observable, qualitative impact on the private sector, then enrollments, private philanthropic support and alumni loyalties may well decline and lead to the eventual demise of the institution. 55 addressed him- At the beginning of the decade, Richard Wynn self to the major concern, expressed later by many, of the quality of private education. In his comprehensive study of 48 liberal arts colleges he noted that accelerating expenditure growth had seriously outstripped income growth producing numerous and larger deficits in 1969-70. These trends reversed themselves in the period of 1971-73 leading him to con- clude that "quality distress" might well replace "financial stress" in the decade of the seventies. Survival might well become the dominant operating principle for the private sector with quality deterioration a byproduct. The theme of concern for financial survival at the expense of quality education is one that traces through the literature on the pri- vate college during the decade of the seventies. 55 G. Richard Wynn. "At the Crossroads. A Report on the Financial Condition of the Forty-eight Liberal Arts Colleges Previously Studied in the Golden Years, the Turning Point". (The University of Michigan: Center for the Study of Higher Education, April 1974.) 36 Summary of the Selected Studies on the Private Sector: No attempt was made in this section to be thoroughly exhaust- ive of the numerous articles, books, research projects and dissertations published on the private college in the United States during the decade of the seventies. What has been attempted is to select those publica- tions that are representative of the major concerns and issues raised during the decade. Financial studies dominate the literature raising serious concerns about the funding of the various components necessary to a quality private educational effort. Deferred maintenance, program en- trenchment, employee morale, increased dependance on the government and quality distress are all products of the financial pressures faced by the independent sector during the past decade. Declining enrollments have not resulted as some would have expected; however, student atten- dance at colleges did level off during the decade...a phenomenon that is not expected to improve in the decade ahead. While the private sector has survived the decade better than many had expected, the challenges that faced these institutions in the seventies are expected to continue into the decade of the eighties. The major question now facing many researchers of the private college sector is, "What will happen to these institutions in the ten years ahead?" Will the predictions that began the seventies now come true in the eighties? 37 Selected Studies on the Church Related Sector In Chapter 1, major attention was given to the review of a number of pieces of literature that spoke specifically to the role, history and future of the church related institutions of the American higher educational system. This material was presented in the first chapter in order to provide an unfolding rationale for the overall study of the topic of higher education in the Free Methodist Church during the decade of the seventies. While much of that material could be repeated here, it is assumed that having reminded the reader of its presence is sufficient for the purposes of this section. What remains to be done is to draw attention to the remaining selected studies not mentioned earlier. Much of Pace's book 56 on the history of Protestant higher ed- ucation in the United States was drawn from the dissertation project en- 57 titled Evapgelical Awakenings in Collegiate Communities done by J. Edwin Orr. This study traced the revival movement of spiritual emphasis through a number of denominationally related colleges and universities emphasizing the importance of the religious heritage of each of these institutions. The material on the history of the Protestant higher ed- ucational movement, mentioned in Chapter 1, is of considerable value to those attempting to understand the motivations behind the Church communi- ties in the establishment of educational institutions. The conclusion of 56 Robert C. Pace, Education and Evangelism 57 J. Edwin Orr,“Evangelical Awakenings in Collegiate Communities" (An Ed.D. dissertation, University of California-L05 Angeles, 1971) 38 the study is that evangelism and education are both central components of the Christian faith and thus are inextricably related. It was this basic understanding of the Christian faith that motivated a number of denominations to sponsor and support religiously oriented institutions. Pace goes on in his adaptation of the Orr research to suggest a helpful, four catagory grouping of Protestant Colleges. 58 The first: those that had their roots in Protestant Christianity but are now no longer directly related to those roots. The second: those who are nom- inally related to Protestantism but are probably on the verge of dis- engagement. The Christian heritage on these campuses is a controversial topic and rarely discussed. The largest group is the third catagory: church-sponsored institutions that retain an active relationship to a particular denomination. These tend ppt_to be strongly fundamental or evangelical. The final catagory includes those institutions visibly identified with the evangelical, fundamentalist or inter—denominational churches. Pace notes that these are the fastest growing group of schools in terms of enrollment and new institutions. Another excellent history of the church related college in the 59 United States is Peterson's The Church-Related College. Here an emphasis 58 Robert Pace, Education and Evangelism 59 Charles E. Peterson Jr., The Church-Related College: Whence Before Whither (Washington: Association of American Colleges., 1980) ' 39 is provided on the important role the various denominations play in the founding of these institutions, the circumstances surrounding the foundings and a discussion of the varying financial support these in— stitutions have as a result of their denominational affiliations. Pattillo and MacKenzie, in a 1966 study 60 of the church affil— iated sector overviewed the purposes and positions of 817 colleges con- nected with some sixty-four religious bodies. Their general conclusion was that these campuses have the potential to develop a more meaningful and experimental approach to living, learning and leadership in higher education. In order to accomplish this, they suggested that there is a major need for better institutional cooperation, a clearer statement of objectives and philosophies, more intellectual leadership for church constituencies and a general need for change in administrative forms and procedures. Ann Ida Gannon's article, while dealing primarily with the higher educational movement within the framework of the Roman Catholic Church, has much to say to the Protestant higher educational movement particularly in the area of purpose, philosophy and objectives. As was mentioned previously, she summarizes the role of the Christian college from a contribution-to-society perspective rather than a retreat-from society vantage point. "Aware of the cultural history of both the 60 Manning M. Pattillo and Donald M. MacKenzie. Church Sponsored Higher Education in the United States (Washington: American ounc1 on Education., 1966) ' ‘7 40 Church and the country, a Christian college is in an excellent position to be a critic, prophet and historian of Christian culture and of the interplay of religion, politics, culture and technology." 61 Holmes' book entitled The Idea of the Christian College pre- sents an excellent perspective on the philosophical and methodolical approaches of those institutions that fall into Pace's fourth group of the evangelical, fundamental and interdenominational. From his perspec- tive as Chairman of the Department of Philosophy at Wheaton College, the leading institution in this set of colleges, he addresses the historical and contemporary reasons behind the existence of the conservative, Christian college. He lays a basis for the founding of these schools and emphasizes the theological foundations that undergird them. He provides a perspective on the importance of the liberal arts and address- es two of the most troubling issues confronting the conservative Christ- ian college...the effective integration of faith and learning and the issue of academic freedom. The fundamental purpose of this group of Christian colleges, Holmes suggests, is to cultivate a meaningful aca- demic experience by stressing the integration of faith and learning and by religiously treating all learning as a religious process. 61 Ann Ida Gannon. "The Future of the Church-Related Colleges: the Impact of Vatican 11", Liberal Education, Vol. 58 (May 1972) 41 Then why a Christian college? Its distinctive should be an education that cultivates the creative and active integration of faith and learning, of faith and culture. This is its unique task in higher education today. While the reality is often more an interaction of faith and learning, a dialog, than a completely idealiintegration, it must under no cir- cumstance become a disjunction between piety and scholarship, faith and reason, religion and science, Christianity and the arts, theology and philosophy or whatever the differing points of reference may be. The Christian college will not settle for a militant polemic against secular learning and science and culture......All truth is God's truth, no matter where it is found, and we can thank him for it all. (62) Ramm's synthesis of the writings and contributions to Christian higher education of Aurelius Augustine, Phillip Melanchthon, John Henry Newman, Abraham Kuyper and Sir Walter Moberly provides an historical focus for the work and role of the church related college today. The first two lectures lay a foundation for Christian higher education with the last three addressing what Ramm views, as the major problems facing the Christian college in the twentieth century.....the interaction of Christianity with culture, the relationship between the college and the church and the conflict between the technological and applied with the liberal arts. Ramm summarizes the writings of the five men he has dis— cussed under the following: 1. A university is Christian only as it is Christian throughout. 2. A Christian university has the Liberal Arts at the center of its curriculum. 3. A Christian university, within the common grace of God, shares in the transmission of culture. 4. A Christian University relates itself vitally to the Christ- ian Church. i. the church must recognize the necessity of scholarship and academic freedom within the university ii. the Church must be careful regarding its creed iii. the professor must not confuse the freedom of speech with academic freedom 62 Arthur F. Holmes. The Idea of a Christian College_(Grand Rapids: Wm. B. Eerdman's Publishing Co., 1977) p.p. 16—17 42 iv. the professor must realize that academic freedom is also a set of responsibilities. v. if the gift to the professor by the Church and the univern sity is academic freedom, the gift of the professor to the Church and the university is integrity. (63) Both Holmes and Ramm have excellent bibliographies of articles and books on the philosophical and theological foundations of the Chris— tian college that were considered in this study. Note the bibliography in this dissertation for other sources considered. Donald Scott's dissertation 64 is representative of a number of the studies that have been conducted on the small, church related college. In this study, seven small colleges which had recently received regional accreditation were analyzed in areas of physical plant, budget, library, teaching methodology, services to students, staff, administra- tion, charter, governing body and the curriculum. The area of greatest change and improvement was in the library. Scott concluded that the key factors in the achievement of accreditation for these schools were the implementation of proven methods and the demonstration of quality ed- ucation. Robert's Wesleyan College was one of the colleges in this par— ticular study. One of the major concerns raised during the decade of the seventies was a consideration of the impact of church related colleges severing their relationship with the sponsoring/supporting denomination. 63 Bernard Ramm. The Christian College in the Twentieth CentUry (Grand Rapids: Wm. B. Eerdmans Publishing Co., 1963) p.p. 115-123 7" 64 Donald Griggs Scott. "Small Colleges in Transition: Case Stu—_ dies of Small Colleges Which Have Recently Achieved Regional Accredita-' tion for the First Time". Ph.D. Dissertation. (Florida State University,1966) 43 In a study done by the Association of American Colleges 55 it was noted that such separation could well lead to a greater dependance on the federal, state and outside philanthropic interests for needed revenues. The impact on enrollments could also be severe if the denominations were providing large numbers of students. Such an increased dependance on government support could well lead to the loss of important autonomy through increased controls. Throughout the literature on the church related sector of pri— vate higher education a number of concepts, concerns and questions have arisen. The Church established institutions of higher learning, not as a bastion from which to escape the problems and needs of the world but as a laboratory in which those problems and needs could be examined from a Christian perspective and the role of the Church in meeting those needs could be considered. While some Christian colleges have strayed from this original mission, many are discovering the importance of main- taining this important focus. Those that commit themselves to this miss- ion may be among the ones most likely to maintain a standard of excell- ence and effectiveness in the future. It is clear from the literature that the college and the Church are inextricably related. Since evangelism and education are two complementary aspects of the Christian faith, the churCh related college can no more sever its relationship with the Church and be faithful to its mission than the Church can sever its relationship to the college and remain faithful to its call. Both are seen as necessary, completing components of the other. 65 Charles S. McCoy The Church Related College in American Society (Washington: The Association of American Colleges., 1980) 44 The private, church related institution appears to have a unique opportunity to explore, develop and implement meaningful appro- ches to living and learning based on the moral and ethical teachings of the Christian faith. Its ability to accomplish this hinges on a number of factors common to the other colleges and universities in the private sector. The church related sector is facing serious chatlenges in areas of finances, enrollment, capital construction, debt service, em- ployee and program retrenchment. Can the church related segment respond as quickly to these pressures as its private college counterparts? Many believe that the very nature of the church related college will make it less capable of responding quickly and effectively to the challenges that lie ahead. What does appear to be clear from the literature is that the survival of this subset of private colleges will continue to hinge on their clarity of and commitment to a unique mission and a cap— acity to adapt and adjust rapidly to changing environmental influences without sacraficing historical distinctives and educational quality. 45 Studies on Free Methodist Higher Education V'v“"'fi In this final section of the literature review, attention will be focused on the major studies available on the higher educational sys- tem of the Free Methodist Church of North America. Numerous articles, papers and studies have been done on the various colleges of the denomin— ation both individually and collectively. Most of these have been ade- quately summarized in the research conducted by Lawrence Schoenhals and David McKenna. A comprehensive review of the work of these two men along with some limited references to materials published since the McKenna study should provide an adequate, representative review of the literature directly related to the nature and purpose of this dissertation. The main summary available on literature related to the Free Methodist Church is Francine Walls' The Free Methodist Church A Biblio— g:aphy_. 66 This 100 page publication indexes many of the historical, doc- trinal, biographical and programmatical aspects of the Free Methodist Church from its inception in 1860 through 1977. The section on higher education is limited to approximately twenty-five references on or con- taining information about the higher educational institutions of the denomination. It appears that no significant information on the denomin— ational schools has been developed since 1977 except for Steven's ABridge to Our World which will be considered later. Some institutional self 66 Francine E. Walls. The Free Methodist Church: A Bibliography, (Winona Lake, Ind: Free Methodist Histor1cal Center, Free Methodist World Headquarters. , 1977) 46 studies were conducted during the seventies, such as Spring Arbor's, for the purpose of re-accreditation. The office of Higher Education and the Ministry published, throughout the last decade, a summary re- port on enrollments, revenues and expenditures, libraries and net worth; no analysis was offered. These studies included the five liberal arts institutions, the one junior college and the Canadian Bible College at Moose Jaw, Saskatchewan. The Schoenhals' Study: The most significant of the studies done on the history and development of higher education in the denomination is the doctoral diss— 67 ertation entitled Higher Education in the Free Methodist Church:1860-1955. Schoenhal's states the purposes of his study as follows: 1) to inquire into the origin, developing objectives, and present position of higher education in the Free Methodist Church from the standpoint of the denomination as a whole; 2) to trace the development of the individual colleges officially recognized as Free Methodist schools; 3) to appraise the present status of Free Methodist Colleges with reference to their organization and control, adminis- tration, faculty and student body; 4) to examine the objectives and the educational philosophies of the various schools; and 5) to investigate certain aspects of the educational product of the two senior colleges. (68) Considerable time was spent by Schoenhals in researching through denomin- ational histories, institutional records, General Church and area Confer- ence "Minutes" in order to trace the development and organizational patt- erns of the higher educational activities of the church. 67 Lawrence R. Schoenhals. Higher Education... 68 . , Ibid p.2 47 Perhaps the single greatest contribution of the Schoenhal's study is the treatment of the rationale behind the development of higher education in the denomination and the history of each individual college. He begins his study of the rationale by providing a perspective on who the Free Methodists purported to be and what distinguished them among other denominational groups. The Free Methodists are a body of Christians who profess to be in earnest to get to heaven by conforming to all the will of God, as made known in His Word. In doctrine they are Methodists. They look upon practical godliness as the never- failing result of genuine religious experience....Hence they insist that those who profess to be the disciples of Christ should come out from unbelievers and be separate; abstaining from all secret societies, renouncing all vain pomp and glory, adorning themselves with modest apparel and not with gold, or pearls or costly array. The government is not aristocratic, but lay members have an equal voice with the ministers in all the councils of the church. They endeavor to promote spirituality and simplicity in worship. (69) In regards to the attitude of Free Methodists toward the impor— tance and role of education, Schoenhals lifts numerous references from the various constitutional documents of the Church in general and its institutions in particular. A few of these have been selected and placed in the body of this study to provide a perspective for the denomination's attitude toward its colleges. 69 Ibid p.3, Note: some of what is contained in this quote Schoen- hals lifted from the 1951 version of Doctrines and Discipline of the Free Methodist Church of North America 1951. (Winona Lake, Indiana 19517' 48 No church can meet its obligations without making provision for the education of the children under her care. Our church needs one or more literary institutions....Education is the handmaid of true religion. Ignorance and superstition go hand in hand....Without education, it is impossible for us to accomplish our goals....Our great and leading want, as a denomination is a school in which sound learning may be promoted and true piety encouraged....hence it is the duty of the Church to do all in her power to educate the rising generation; first, in knowledge of the Scriptures and secondly, in that of the sciences. (70) The attitude that pervaded the early years of the church in the area of education is best revealed in the following quote taken from the 1874 "Minutes" of the General Conference of the denomination: We regard, as too evident to need supporting arguments, the following propositions. 1. A well educated Christian is capable of much greater usefulness....than an ignorant one. 2. That to neglect the proper cultivation of our mental powers is sinful 3. That human intellect can only obtain its greatest perfection of development when controlled and inspired by the saving grace of God. We believe, therefore, it is our imperative duty to secure for ourselves, and our children, such means of education as shall be pervaded most eminently by the salvation element. (71) While the early church sought to work out its beliefs in this area pri- marily through the development of "seminaries" or, what would be called to-day, residential elementary and secondary institutions, their activi— ties soon expanded to Bible, Junior and Senior colleges. 70 these quotations were lifted from various sources that Schoen- hal identified including records dating from 1870 to 1875 and referenced on pages 10-12 of his dissertation. 71 Ibid p.13 49 Of interest is Schoenhals' noting that the denomination did not develop a centralized educational system under the direct control of the General Church. Area Conferences took up the challenge of education at the local level, leaving the institutions somewhat autonomous in their direction and operation. The schools were affiliated with, but not under the control of, the denomination. Continued affiliation depended on the school's willingness to honor the specific doctrinal, theological and behavioral expectations of the denomination. That same system of affili- ation persists to—day with all of the colleges related to the denomination. Major events of historical significance are mentioned in the study including the development of the Board of Education, the constitu- tion of the Commission on Christian Education and the influence of the denominational schools on the establishment of higher standards of train- ing for the clergy. After dealing with the important events in higher education at the denominational level, Schoenhals turns to‘a discussion of each of the collegesirlexistence at the time of his study. He traces the history and adds comments about curricular and administrative mileposts for Roberts Wesleyan College, Spring Arbor Junior College, Central College, Wessington Springs College, Seattle Pacific College, Greenville College and Los Angeles Pacific College. He concludes this massive historical analysis by mentioning the discontinued schools including Evansville, McKinney and the Seminaries. The last section of the Schoenhals' project involved an analysis of the educational product of two of the senior colleges of the denomin— ation, Seattle Pacific College and Greenville College. Surveys were sent 50 to graduates of the two institutions in an attempt to gather feedback on attitudes about the educational experience, current location, education and vocation of the graduates, and reasons for selecting the colleges. An attempt was made through this survey technique to obtain an indication of the impact that the colleges were having on the denomination in terms of the services rendered by the graduates. Chapter XII of the study summarized the findings, conclusions and recommendations that grew out of the research. Among the findings that Schoenhals indicated was the fact that the denomination never intend- ed to establish a parochial educational system. Second, that the demand for a higher education system in the denomination did not develop until 1893 when the first college level work was offered. 72 A third observa- tion was that in spite of the denomination's conservative Christian position, it rejected the Bible Institute approach to higher education in favor of stressing the importance of a liberal education in the arts and sciences. It was noted earlier that these would be studied from a Christian perspective. Fourthly, ministerial training was not the moti— vation for the establishment of these schools since independent study was the main mechanism by which the clergy were trained and qualified until 1938. 73 A fifth observation was that schools were started and run by individual and local Conference incentive rather than by direct sponsor- ship from the denominational headquarters. Sixthly, Schoenhals observed that by 1954, according to his analysis of catalogs and other official 72 Ibid. p.437 73 Ibid p.438 51 institutional materials, the colleges had not departed from their original ideals which emphasized a concern for the moral and spiritual as well as the intellectual development of the student. These ideals appeared to be shared equally by the supporting constituencies, the administrations, the controlling boards and the faculties of these colleges. By 1954, he noted as his seventh observation, that the colleges had a uniformity of purpose in spite of the fact that there was still very little centralized control from the denomination. This was accounted for by the fact that the colleges often had a great deal of overlap as they shared presidents and other key personnel throughout their history. Other observations regarding the function and make-up of govern- ing boards, the descriptors of college presidents and the faculties makes interesting reading. The average tenure for presidents in 1953-54 was 9.5 years with the average tenure of faculty in the senior colleges being 9.7 years. Only two of the presidents had been recruited from the Gospel ministry. There were more men than women on the faculties and the median number of Free Methodists on the faculties was approximately seventy-five percent. 74 The range of Free Methodist students in the junior colleges was from 69.8% to 88.3% with the senior colleges ranging from 26.6% to 66.0%. 75 74 Ibid. p.445-6 75 Ibid. p.446 52 In conclusion, Schoenhals noted that there was a distinct trend toward a greater centralization of educational authority with the denomination exhibiting an increasing desire to control the various in- stitutions by asking local boards to voluntarily relinquish legal powers. A second conclusion was that a denominational-centered emphasis might be a major hinderance to a dynamic growth pattern due to the small size of the denomination at the time. Schoenhals also observed that social and religious conservatism did not seem to be a deterrent to growth; Free Methodist schools increased at a rate comparable to the national average.76 Five recommendations were offered by Schoenhals as a result of his comprehensive study. They included the suggestion that a uniform method of student enrollment data gathering be implemented, that histori- cal resources and materials should be exploited and preserved, that follow—up studies of graduates should be carried on at the denominational level, that patterns of college organization and control should be stud- ied and that officers of the denominations headquarters should not have vested interests in any school. An interesting sidelight and follow-up to this review of Schoenhal's study is, that after a successful tenure as a Free Methodist college faculty member, administrator and president, he would finally come to denominational headquarters as the General Secretary for Higher Education and the Ministry and be instrumental in implementing a number of his own recommendations and suggestions before his retirement in December of 1980. 76 Ibid. p.449 53 The McKenna Study: In the Fall of 1960 a project to study Free Methodist higher education was conceived under the joint sponsorship of the Commission on Christian Education of the Free Methodist Church and the Association of Free Methodist Colleges. A sum of $8,000 was set aside and Dr. David L. McKenna, then Coordinator of the Center for the Study of Higher Edu- cation at The Ohio State University, was named as Study Director. A joint committee from the two sponsoring organizations was assigned to assist with the project and individual study directors for each of the campuses established. The purpose of the study was to provide the de— nomination and the colleges with a report on the present conditions and future prospects for higher education within the framework of the Free Methodist Church. The final report, presented to the Church~School Relations Committee in June of 1962 was entitled The Study of Free Methpfj 77 dist Higher Education. Due to the thoroughness and significance of the study, it will be reviewed in detail. Additional references will be made in Chapter 4 and again in Chapter 7 as a means of providing a long range perspective for the summary and conclusions offered by the current project. 77 David L. McKenna. The Study of Free Methodist Higher Education (Winona Lake, Ind: The Commission on Christian Edhcation andiTheiASSociaL tion of Free Methodist Colleges, 1962) 54 McKenna outlined the five major steps for the study as follows: 1) a survey of Free Methodist ministers, under church appoint- ment, for identifying the present and future college popu- lation within the church. 2) the completion of Institutional Study Reports from the individual colleges 3) visits to the colleges by the Study Director 4) compilation and analysis of the collected data; and 5) preparation of the Study report. (78) The survey included a study of the present college age population of the denomination, the colleges these students were attending and reasons for their choices, the present population of the Sunday Schools and the college plans of the high school youth with an inquiry as to the reasons for those plans. About 56% of the ministers surveyed returned the report. The Institutional Study Reports requested information on "purposes, con- stituency, curriculum, administration, faculty, library, physical plant, 79 finance and long-range planning". The visits to the campuses by the Director attempted to clarify and standardize data between the schools since, at that time, no uniform method of data collection and reporting had been established. McKenna's first section deals with the historical and present purposes of Free Methodist higher education. He provides a helpful sum- mary of the historical purposes of the denomination by synthesizing Schoenhals' previous work with other institutional histories. 78 Ibid p.65 79 Ibid p.65 55 First, each of the histories of the Free Methodist Church stresses the fact that the founders of the Church and their predecessors were actively interested in the education of the membership through formal means....Second, each of the schools was founded by individual or annual conference initiative and the persistent attempts to bring the schools under centralizedflcontrol have failed....Third, in spite of the lack of coordination among the colleges, Free Methodist higher education has maintained a uniformity of purpose.(80) In terms of the present purposes of the colleges, McKenna noted that the educational objectives demonstrated a concern for the develop- ment of a Christian philosophy of life among students, a three-fold em- phasis on individualized instruction, liberal education and scholarship and a concern for social, vocational and physical health needs that were 81 typical of the small, private college. The relationship between the colleges and the Church were more informal and voluntary; McKenna noted that words such as "auspices", "sponsorship" and "approval" were charac— teristic in reports and other documents where the relationship between 82 the colleges and the church was described. He concludes that "The relationship of the colleges to the church is, therefore, moral rather 83 than legal". Two additional observations about the downward shifts in the percentages of Free Methodists on the Boards of Trustees and the de- creasing percentage of Free Methodist students as the colleges look to the broader, evangelical constituency, noted that those shifts had not seriously changed the overall purposes of the colleges. 80 Ibid p.2—5 Ibid p.13-14 83 Ibid p.15 56 The second dimension of the McKenna study dealt with an analy— sis of the present and future enrollments of Free Methodist colleges as it related to the numbers of students identified with the denomination. The Minister's Questionnaire was sent to the clergy of the denomination for the purpose of determining: 1) What is the college age population in the Free Methodist Church? 2) How many Free Methodist youth in the college age population of the Church are enrolled in institutions of higher education? 3) How many are enrolled in Free Methodist colleges in contrast to other types of institutions? 4) What is the potential college age population in the Free Methodist Church based on projections to 1972? 5) What are the college plans of high school youth in the Free Methodist Church at the present time? (84) More detailed reference to the findings in this area will be mentioned later in this project as a discussion of enrollments during the decade of the seventies is attempted. 0f the fifteen findings of the study, McKenna concluded that: First, the Free Methodist Colleges are drawing denominational college age youth from a depleted, but relatively select population....Second, the service potential of the Free Methodist colleges for college age youth in the Sunday School population is already close to the maximum based on comparable national and church population figures...Third, unless there are significant changes in the Sunday School and Church populations, the potential enrollments in Free Methodist colleges from among college age Free Methodist youth will be seriously limited. (85) 84 Ibid p.24 85 Ibid p.38-39 57 Based on the information gleaned from the individual campus reports and the personal visits made by the Director to each college, an evaluation of the Free Methodist colleges was offered in the areas of the quantity and quality of students, curriculum content and emphasis, library resources, administration, faculty, finances, facilities and long range planning. Students, library, finances and facilities will be mentioned again later as comparisons are offered. McKenna offered the following observations on strengths and weaknesses: Strengths which immediately come forward are the purposes of the colleges, the educational and religious heritage, the faith of their leadership, the dedication of the faculties and long standing pattern of survival under adverse con- ditions. Counterbalancing these strengths, however, are some glaring weaknesses, such as the limitations of potential Free Methodist enrollments, the duplication and proliferation of the curriculums, the low faculty salaries, the unstable financial status, the serious need for new facilities and the inadequate basis for long-range planning. In other words, most of the Free Methodist colleges are fairly good denominational colleges. Serious questions arise, however, about the colleges having that element of distinctive quality which would put them on a competitive basis for recruiting non-Free Methodist students who may seek an outstanding Christian college. (86) McKenna concludes the study with some fourty—seven different findings which he groups under the catagories of the purposes of the colleges, populations for the colleges, and programs of the colleges. Some of the conclusions coming out of the study included the observation that higher education in the Free Methodist church was changing from a strict denominational view point to a broader evangelical one; 86 Ibid p.61 58 that the shift in the percentage of students from outside the denomination indicated that the church was unable to sustain seven colleges; that the service potential of the colleges to the denomination was close to its maximum; that unless the denomination saw major growth in its Sunday School and youth program it would not be able to provide the needed stu- dents for the colleges; that the concept of "Free Methodists Higher Edu- cation" is more accurately expressed as a "fraternal affiliation" since the colleges, as a group, are essentially uncoordinated and independent; that the long-range planning of the colleges for future growth and ex- pansion were unrealistic in terms of the current evidence and information; that the church was "neither highly sensitive to the needs of the colleges nor fully aware of the contributions the colleges make to the church" 87 and that the key to improving the relationship between the college and the denomination was increased financial support from the denomination. The study concludes with a series of recommendations designed to improve the awareness of the church about its colleges, establish better coordination between the colleges and implement research activities that would provide information fer both the colleges and the denomination to assist with more accurate and realistic planning. It is observed that the McKenna study provided a milestone in the development of higher edu- cation in the Free Methodist Church. The results of his study were diss- eminated among various organizations within the denomination and provided important incentive, it appears, for the colleges individually and collec- tively. Later it will be noted that the colleges did take major steps to 87 Ibid p.79 59 improve in the areas where McKenna expressed concern. Additional Literature on the Denominational Colleges: In the period following the McKenna study, the colleges and the denomination made major strides. The Association of Free Methodist Educational Institutions took on an important coordinational task pro- viding a focus for individual institutional mission and programs while not limiting the autonomy of the colleges. In 1965, Los Angeles Pacific College merged with Azusa College to become Azusa Pacific College; in 1968 Arlington College, a Church of God school, affiliated with Azusa giving the college more of an interdenominational relationship while remaining affiliated with the Free Methodist Church. Under the leader— ship of David L. McKenna, appointed as President in 1961, Spring Arbor moved from a junior college to a senior college with regional accredita- tion accomplished by 1965. Robert's Wesleyan College celebrated its centennial of service in 1966 with Spring Arbor celebrating its centen- nial in 1973. A significant history of Spring Arbor College 80 was published in 1973 to commemorate this event. Greenville College contin- ued to prosper during the sixties and into the seventies adding, as did the other colleges, significantly to the academic programs, physical facilities and student enrollments. Azusa Pacific and Seattle Pacific added some limited graduate level programs with Seattle Pacific College changing its name to Seattle Pacific University in the mid-seventies. The years following the McKenna study into the mid-seventies were unques- tionably the "Golden Years" of higher education in the Free Methodist Church. 80 Howard A Snyder. 100 Years at Smipg Arbor: AHistopy of Spring Arbor College 1873-1973. (Spring Arbor, Mich. 1973) 60 As the decade of the seventies drew to a close, leveling en- rollments, financial difficulties and changing academic interests began to raise concerns about the future of higher education in the denomina— tion. Church growth had levelled off and the number of college age stu- dents in the denomination had begun to decline. In August of 1979, W. Richard Stephens, President of Greenville College, addressed the World Convocation meeting of the Free Methodist Church on the issues facing the denomination's institutions. In an address entitled A Bridge to Our 81 World Stephens reminded the Convocation of the 120 year history of commitment by the denomination to education; "In fact, our principal ex- pression of Christian witness and service outside of America has been in the form of schools and in more recent years in the provision of medical 82 services". Based on some research, Stephen's developed in preparation for the speech he noted the following: First, all of our existing colleges now meet the highest accreditation standards..Second, more than 30,000 people have earned degrees at these schools and they have serviced an alumni group that totals 145,000....Of the 2,300 living Pastors and missionaries listed in the 1978 yearbook, 65 percent are alumni of one or more of our colleges and 50% are graduates....it is significant to note that the colleges have iven directly to this present group approximately 1.3 million h1financial aid to help forward their preparation as ministerial leaders. (83) 81 W. Richard Stephens A Bridge to Our World, speech given before the World Convocation of the Free Methodist Church August 21, 1979. (Winona Lake, Ind., Department of Higher Education and the Ministry, 1979) 8 Ibid p.2 83 Ibid p.3-4 61 Stephens summarizes the current resources of the colleges noting that the combined book value of the physical plants was $55,000,000; that total Fall enrollments for 1978/79 were 7,000 students; that the faculty to- talled 450; that operating budgets exceeded $30,000,000 and that library 84 resources included some 550,000 volumes. He adds, however, that "there 85 are some foreboding factors which dim the glow of their potential". First, there will be a 25 percent decline in the number of college age youth by the year 1990....The figures from 1971 through 1977 show drops of 2,866 in the junior Sunday School, 2,021 young teens and a drop of 1,736 senior highs in our church ..... Second, that runaway inflation pushes up college costs (with the result being) our colleges become increasingly involved with the government. Hence, the third factor of government regulations and issues of church and state are ever before us. Fourth is the continued seculari- zation of the cultures of the world on one hand and the rapid rise of subjectivism and mysticism in religion, on the other.(86) Stephens proceeds to emphasize the interdependance necessary for-the denomination and colleges if both are to accomplish their respective missions in the years ahead. He concludes his address with some recommen- dations on how the church and the colleges might improve their relation- ship including the importance of mutual trust and respect for each others mission, the call for the colleges to maintain high academic quality, the importance of the colleges developing programs for the improved churchmanship of the laity, the fact that the churches need to actively recruit college age students into membership and that each qualified Free Methodist student should receive scholarship assistance made available 87 from General Church endowment funds. Stephens summarizes and concludes with the following: 84 Ibid p.5 Ibid p.7-1O 62 While the church plans new forms and strategies of ministry, it must not commit the error of ignoring or neglecting the programs of ministry that already have strengthened it...but the strong point remains that the church will not go nearly as far alone in doing the work of Christ as it otherwise will with a creative, cooperative program of intense support for an utilization of its colleges. Our urbanized and com- plex world and its people require a ministry from the church and the colleges that calls for the service and caring of Christian people who are growing in spiritual depth, in competency of thought and skill and in cultural sensitivity.(88) Summary on Free Methodist Related Literature Throughout the literature reviewed in this chapter, it has been noted that the denomination has retained a strong commitment to the importance of a "liberal education" for its people. The educational ex- perience was not to be sectarian but multi-denominational in nature. The clarity of purpose and mission for the colleges individually and collect- ively has persisted throughout the history down to the present. It should be noted that the growth periods of the denomination's colleges have followed, for the most part the growth and development patterns of the public sector of higher education in general and the private sector in particular. The same influences that are currently impacting these sectors are believed to be having an equal effect on the Free Methodist colleges. What has been their impact on the denomination's colleges during this last, difficult decade for higher education and what will be the future? After a consideration of the methodology employed in this study, attention will be turned to these important questions. 88 Ibid p.11—12 CHAPTER 3 METHODOLOGY Introduction The purpose of this chapter is to outline the methodology em- ployed in the study by describing the procedures used to identify the major issues to be addressed, the data collection, assimilation and coll- ation process and the statistical analyses utilized to infer conclusions and make projections. Each dissertation appears to begin with the struggle to balance the ingredients of personal interest, scholarly excellence and pragmatic expediency. It was assumed, in the case of this study, that the closer aligned the project was with the personal interests and professional goals of the researcher the more likely would be its long term meaning and value. Scholarly excellence came to be defined as the demonstrated abil- ity to do acceptable research through appropriate survey and statistical methodology and to communicate that research in a cogent and effective style. Expediency played an important role in that the project needed to be completed within the parameters of available personal resources and time frames. The result, it is believed, is a study that achieves an acceptable balance between personal/professional interests, scholarly excellence and expediency. 63 64 The Identification of the Issues to befiStudied Based on the criteria of personal and professional interest the nature of the study was delimited to a consideration of the private church related colleges of the Free Methodist Church of North America. Having spent most of my career within the context of this group of schools during the decade of the seventies and having familiarity with the oper- ations, administrations, programs and challenges of the colleges during that period, it was decided to study the major issues impacting these schools during the period of 1969/70 through 1978/79. More detailed ra- tionale for selecting the Free Methodist Church as the denominational context for the study was explained previously in the first chapter. Having delimited the denominational group and the time frame for the study, attention was turned to a survey of the literature pub- lished during the seventies on the private college sector in general and the church related segment in particular. An ERIC search of the two major indexes Resources in Education 89 and Current Index to Journals in 90 Education was conducted to identify materials published during the decade in the areas of "Private Higher Education“, "Church Related Higher Education", "Independent Higher Education", "Private Colleges and Univer- sities", "Christian Colleges" and other related materials. The review of the relevant materials discovered in this search is found in Chapter 2. 89 Resources in Education (Washington: U.S. Dept. of Health, Edu- cation and Welfare, NationaT'Institute of Education) 90 Current Index to Journals in Education, (Phoenix, AZ., The Oryx Press) 65 A HDatrix II"91computer search of theses and dissertations on file with University Microfilms International is recommended to identify additional research done on this topic if this study should be replicated or expanded in the future. It was not done for this study since sufficient sources had been identified through manual means. Dr. William Shoemaker, Vice President for Research of the Council for the Advancement of Small Colleges in Washington, D.C. was contacted; advice was sought on what he believed to be the major issues facing the private and particularly church related colleges during the seventies.Projections for the eighties on the future of these schools were also solicited. Dr. Virginia (Fadil) Hodgkinson, Executive Director of the National Institute of Independent Colleges and Universities, was contacted for the same purpose. Information from Dr. Hodgkinson on the Minter-Bowen studies was received and her own research on the openings, closings and mergers of private colleges during the decade was obtained. Permission to quote extensively from the Minter-Bowen studies was received. Both organizations provided bibliographies of materials thought to be of relevance to the study. In order to have meaningful comparison of the group of denom- inational schools to a national group, it was decided to utilize the research done by John Minter and Howard Bowen on a stratafied sample of private colleges for the period under consideration. The annual reports on financial and educational trends in the independent sector are highly respected and valued among all who were consulted on this topic.Much of the literature reviewed contained comments and references 91 University Microfilms International,"Datrix II: A Computer Search and Retrieval System for Dissertatins and Theses" (Ann Arbor, Mi., University Microfilms, 1979.) 66 to this study of 100 private colleges and universities. It was decided to delimit the study to many of the same issues addressed by Minter-Bowen in order to facilitate meaningful comparisons. With this as a part of the study, the three elements for the dissertation emerged as trends during the decade of the seventies; a comparison of trends with the private college sample, and projections for the eighties. The Historical Center of the Free Methodist Church provided a bibliography of materials, available in their archives, that addressed the colleges in the denomination. The colleges were asked about histori- cal, self—study and other materials that they deemed to be relevant. Dr. Lawrence Schoenhals, General Secretary for the Association of Free Metho— dist Educational Institutions, was interviewed; he provided statistical summaries of research his office had done on the colleges, comments on his own dissertation on the topic and suggestions on issues that would be of value for consideration in the study. Dr. David McKenna, President of Seattle Pacific University and President of the Association of Free Methodist Educational Institutions for the 1979/80 academic year was interviewed. His observations on what had happened to the private colleges during the decade and the Free Meth- odist schools were solicited. Dr. McKenna also assisted in enumerating a number of the major trends impacting these schools during the decade and suggested a number of major issues that might face the private church related sector in the eighties. Advice on delimiting major issues for this study was also received. The results of the literature review, the interviews, and the Minter-Bowen studies were collated into a working paper of possible issues to be addressed in the study. This was mailed to each of the colleges 67 presidents for the purpose of soliciting input and comments on their willingness to participate in such a study. The feedback was assimi— lated and a dissertation proposal presented to the Doctoral Advisory Committee for review, comment and approval. A time frame was estab- lished at the February 1980 meeting of the Committee which was subse- quently modified due to family illness. The revised proposal was resubmitted to the college Presidents at the Spring, semi-annual meeting of the A.F.M.E.I. held in Orlando, Florida in March of 1980. Azusa Pacific College was not represented at this meeting thus adding to the rationale mentioned in Chapter 1 for their exclusion from the study. At a lengthy breakfast meeting, the procedures for collecting the data were established. Major concerns about how the data would be published and the nature of institutional comparisons within the group were resolved when the decision was made to aggregate data and show it in a format similar to the Minter-Bowen studies. A time table for campus visitation was explored and a tenta- tive schedule for data collection agreed upon. The major issues to be addressed by this study were grouped under three main headings; revenue and expenditures, enrollment, and academic program and faculty. An analysis of trends in each of these areas for the decade of the seventies and a projection of trends for the eighties was then planned. The trends and projections were developed in such a way as to address, in question form, the concerns discovered from the literature search, the personal interviews and the Association meeting. The three main headings included the following: 68 A) Revenue and Expenditure Analyses 1. tomVO‘lm-bwh) H O B) Enrollment Analyses #90 NH What have been the tuition and revenue trends for the period? What have been the endowment growth and yield trends? What are Is there What are What are What are What are What has the indebtedness trends for the period? an increasing dependency on government assistance? the trends in the denominational financial support? the trends in student financial aid? the trends in alumni support? the trends in corporate and foundation support? happened to the net worth of the colleges during this period? What has student? What are What are with the What are What are happened to the per capita costs to educate a the trends in undergraduate enrollments? the trends in the % of the student body identified supporting denomination? the trends in new students? the trends in male vs. female enrollment? C) Academic Program and Faculty Analyses 1. 0-1-wa What are academic What are What are What are What are the trends in the % of the budget utilized for and instructional support purposes? the trends in the number of degrees awarded? the trends in library expenditures and additions? the trends in the student/faculty f.t.e. model? the trends in the number of women faculty? Each of these questions was formulated to address the overall concern for the "health" of the institutions in the study, compared to the national data base, during the decade of the seventies and the possible health of these in the decade of the eighties. 69 The Data Collection Process In this next section, a description of the data collection process is provided detailing the use of standardized forms, pilot testing of the instrument and the on-campus visits and mail collection procedures. Having identified the major issues and worked out the cooper- ation of the various colleges , attention turned to the process of collecting the appropriate data elements needed to meaningfully address the issues. Previous experience had shown that, while most institutions followed data collection and reporting procedures outlined by the National Association of College and University Business Officers(NACUBO) and prescribed by the Higher Education General Information Survey (H.E.G.I.S.) distributed by the Department of Health, Education and Wel— fare, there was a major tendency to repackage and present data in dif- ferent ways in order to meet the information needs of the various college publics. For example, fund raising data often would be calcu- lated in such a way as to demonstrate to the Board of Trustees the maxi— mum effort made by the Development Office and may or may not include monies raised for capital as well as annual gifts. In some cases an individual donor could be catagorized as an alumnus, an employee of the institution and a friend of the college; a single contribution could show up in all three catagories thus significantly inflating revenues. Similar variations could be found in the expenditure reporting process as well as in enrollment records. After considering the various nuances present in the collec- tion and reporting of data by the colleges, it was decided to design a 70 collection instrument utilizing data elements and definitions that were common to higher education reports. Since all private colleges are ex- pected to file the various reports annually requested in the H.E.G.I.S. data, the decision was made to utilize these reports and definitions as a major component of the data collection activity. The following H.E.G.I.S. sub reports were utilized for the development of the data collection instrument: "Financial Statistics of Institutions of Higher Education", "Salaries, Tenure and Fringe Benefits of Full Time Instructional Faculty", "College and University Libraries", "Fall Enrollment in Institutions of Higher Education", and "Degrees and Other Formal Awards Conferred". Each of the above reports for the yearsl969/7O through 1978/79 were reviewed and a por- tion of the data collection instrument developed based on these semantics and definitions. Due to a major revision in the "Financial Statistics" report in 1973/74 it was discovered that data before 1973 was not as reliable as that for the period 1973/74 through 1978/79. After reviewing Minter-Bowen, it was decided, as a result of this problem, to collect and analyze fiscal data for the period 1973/74 through 1978/79 only. While the H.E.G.I.S. reports provided most of the data elements for the study, it was necessary to utilize a second source of information for the details needed on the revenue aspect of the analysis. The coun— cil for Financial Aid to Education published an annual report of volun— tary giving based on data submitted from private and public institutions across the United States. While institutions are not required to submit information, most do in order to provide a national comparison in the 71 fund raising area. The Council graciously made available all of their published reports for the years 1971/72 through 1978/79. 92 A review of these reports revealed that most of the colleges in the denominational group had submitted data during this period. After reviewing the report, it was decided to collect information on private gifts for operational and capital purposes in the catagories of: 1) Corporations, Foundations, Business Concerns, 2) Religious Denomination, 3) Alumni, and 4) Other Voluntary Sources. In addition, information reported on endowments, endowments yields, current fund revenues and expenditures were recorded. Finally, data needed on denominational contribution factors including finances and student enrollments was collected utilizing the annual reports published by the Association of Free Methodist Educational Institutions and checked against the records of the colleges. A data collection instrument, was finally formulated as the major tool for the collection of the information necessary to address the major issues. Appendix C contains a copy of the data collection device and a set of guidelines for transferring data from the data source to the form. 92 Council for Financial Aid to Education, Voluntary Support of Education (New York: Annual Reports 1971/72 through 1978/79.) 72 The completed data collection instrument was taken to Spring Arbor College for pilot testing and adjustment. During the collection process it was discovered that a major change in definitions and formats occurred in the H.E.G.I.S. reports during the 1973/74 year as previously mentioned. Considerable time was spent in attempting to reconcile the differences in order that an appropriate analysis of financial data for the full ten year period could be attempted. The decision was finally reached, and subsequently born out by future use, that financial data for the last half of the decade would be sufficient to answer the questions addressed by the issues of the study. Few changes were necessary in the overall design of the form. A schedule and procedure for collecting and verifying data was established for use on the other campuses. Mrs. Euretta Ward, research assistant at Spring Arbor College, was very help- ful in clarifying H.E.G.I.S. data collection procedures and definitions having worked with this data throughout the decade covered by the study. At the Spring meeting of the Association of Free Methodist Educational Institutions, a tentative schedule for the visitation of each of the campuses was established which would have completed the data coll- ection process by mid-May. A major family illness interrupted those plans and postponed most work on the project until early June. Subse- quent phone calls with the colleges during this period surfaced the possi- bility of collecting the data by mail with the possibility of later phone follow-ups and visitations if necessary. The mail collection process was tested with Robert's Wesleyan College and proved to be workable in their case. Greenville College was unable to provide a staff member to work 73 on the data; a visit was scheduled for mid-August and completed with all data necessary being collected. Seattle Pacific proved to be the most difficult in the collection process. A convenient time to visit the campus could not be worked out; in November, after numerous phone calls, Dr. Don Kerley at Seattle was given the task of pulling the needed data together and forwarding it for analysis and completion. In retrospect, the planned visitations to the campuses were, without question, the most effective and efficient way to collect the data. The time frame for this phase of the project could have been shortened considerably had the personal visit schedule been adhered to in total. However, the final accuracy of the data does not appear to be seriously affected by the mail and phone solicitation process. The Collation and Assemblying of Data With the necessary data collected, final display formats were constructed to address the issues. Minter-Bowen displays provided the major design pattern for the data formats. Each colleges'data was transferred to an interim collation page to allow for the statistical manipulations necessary to achieve the outcomes for the final displays. A sample of the interim collation page is included for information in the Appendix C. Gaps in the collected data were noted and evaluated. Where missing information appeared to be central to the meaningful pro- cessing of data, phone calls were made to the respective schools and information or clarification solicited. 74 Due to the nature of the project and the relatively limited volume of the data utilized, the collation and assembly procedure was handled manually. While data processing support could have been utilized, it was decided, given the nature of the statistical procedures employed, that the costs in time and finance did not warrant the transfer of data to computer manipulation at this point in the study. Statistical Methodologies Employed Perhaps the most difficult aspect of the development of the research methodology for this project was the decision regarding the nature and level of sophistication statistically necessary to accomplish the objectives. The first step in the decision process was to review the basic elements of statistical research and design. The major tools used in this review were Anderson's Encyclopedia of Educational Evalua— 93 '94 tion and Kerlinger's Behavioral Research: A Conceptual Approach. Step two involved a thorough review of the methodology of analyses em- ployed by Minter and Bowen 95 in their study of the private college sec- tor. Since Chapters 4 and 5 were to make major use of the data from the Minter-Bowen project, it was decided to let their statistical methodology guide the design for these two chapters. Chapter 6 required a higher level of statistical procedure for the projections into the eighties; as a result step three involved an in-depth review of the methods employed in trend line analyses, linear regression and least squares. While it is 93 Scarvia B. Anderson, Samuel Ball, Richard T. Murphy and Assoc., Egggglopedia of Educational Evaluation (San Francisco: Jossey-Bass Pub. 94 Fred M. Kerlinger. Behavioral Research: A Conceptual Approach (New York: Holt, Rhinehart and Winston, 1979) 7* 95 Minter and Bowen, Independent Higher Education 75 assumed that most individuals reading this dissertation will have a high level of statistical awareness, for the purpose of clarity, time will be spent in describing and defining the major components of the statistical methodology employed. Since the size of the sample utilized in this study was small enough to include all four of the full member institutions, it is noted that in statistical terms that the sampling is from a "finite population" utilizing the "total universe" of subjects available in the population. (N=4) 96 Further study concluded that due to the small nature of the sample, "non-parametric statistics" (a test whose model does not specify conditions about the parameters of the population from which the sample was drawn 97) would be employed. In chapters 4 and 5, based on the approach utilized by Minter and Bowen, an emphasis would be placed on the "measures of central tendency" including the "mode and median" but, most meaningfully the arithmetic "mean". (M) Since the data that is used in this study is from the "ratio scale", the mean as the measure of central tendency is an appropriate descriptive statistic. 98 Through- out the study the mean is calculated as the total sum of the raw scores divided by the total number in the sample (usually 4 since N=4). 96 William Hays, Statistics for the Social Sciences, Second Edition, (New York: Holt, Rhinehart and Winston, Pub. 1973) p.287 97 Fred N. Kerlinger3Foundations of Behavioral Research Second Edition, (New York: Holt, Rhinehart and Winston, Pub. 1973) p. 283 98 Herbert Terrace and Scott Parker, Psyghological Statistics (San Rafael, Calif., Individual Learning System, 1971) p. 3l11 76 Due to the agreement reached with the college presidents, data is reported in aggregate form only in order to protect the confidentiality of some of the data reported. Index numbers were employed, particularly in Chapter 5, in order to provide a meaningful comparison with Minter- Bowen. An index number is a measure of relative change in a group of numbers from a base period to another period. An unweighted, aggregate index number is utilized in this study. Chapter 6 of this study relies heavily on the statistical pro— cedures utilized to make predictions called "trend line analysis." Trend lines depend on linear relationships and regression analysis. The re- gression formula utilized in Chapter 6 for prediction purposes can be stated in words as follows where Y=the year and X=the particular value represented such as dollars, enrollments, library volumes etc.: Y predicted = the mean of Y + (coefficient of correlation) times (ratio standard deviation Y to that of X) times (the deviation of X from the mean) 99 or in terms of statistical formula: Y' = Y + r ”Sy. (X-X) Sx While it was noted that computer assistance was not employed in this study, the trend line analysis was simplified greatly by the use of a desk top calculator, the Texas Instrument SR-51-II, which was capable of calcula- ting the regression formula from the raw data that was entered. While some thought was given to the utilization of correlation coefficients in order to calculate levels of significance (the Pearson— Product Moment for example) it was felt that these were neither necessary norappropriate to the nature and outcome of the study. Further explana- tion of statistical procedures will be noted in chapters 4 through 6 where necessary. gibid. p.8-22 CHAPTER 4 TRENDS IN FREE METHODIST HIGHER EDUCATION DURING THE DECADE OF THE SEVENTIES Introduction to the Trends In this chapter, the data will be collated and presented in such a way as to address some of the major trends faced by the Free Methodist colleges during the decade of the seventies. The first con- sideration is given to selected financial trends that developed during the period; the second section, addresses undergraduate enrollments in— cluding trends in both headcount and full time equivalent students, the number of students identified with the denomination and an analysis of the percentages of new, part time and female students. In the third section, the trends selected to address concerns in the area of academic programs and faculty will be observed, including the percent of budget utilized for academic and instructional purposes, the total number of degrees awarded, expenditures and total volume growth in the library, student/faculty ratios, the number of women faculty, the growth in full time equivalent faculty and the per capita costs to educate students. This chapter will conclude with a summary discussion of the trends dis- covered during the years under consideration. Table 1 provides a comparative perspective under the eight major headings of current fund revenues, current fund expenditures, 77 78 endowment market value, physical plant assets, indebtedness, student full time equivalency, faculty full time equivalency and the number of degrees awarded. All information presented is for the 1978/79 fiscal year. This display of information is necessary to give the reader a perspective on the four institutions in order to make the presentation and interpretation of data more meaningful. As was noted earlier, all data will be presented in aggregate terms utilizing either index numbers or percentages so as to comply with the requests of the college presidents that data be kept confidential and that comparisons between schools not be made. Raw data is presented in Table 1, however, to illustrate the range that exists between the institutions in each of the major cata- gories. Seattle Pacific University is significantly larger than its sister institutions; it also has a graduate level curriculum not charac- teristic of the others. The aggregating of data, due to the differences between Seattle and the others, tends to produce a mean picture that is somewhat skewed. The totals in Table 1 also serve to provide a collective pic- ture of the four Free Methodist colleges which is important for compari- sons the reader may want to make with other denominationally related colleges, private colleges or public institutions. The colleges as a group, represent resources and assets comparable to a small public in- stitution or some of the larger private colleges in the Minter-Bowen group. 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