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Rumbling in the ranks at Wartburg: Some faculty question money, projects, prez salary

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WAVERLY -- Under President Jack Ohle, Wartburg College has posted records and reached goals. Year after year.

As an administrator, Ohle appears to have the golden touch when it comes to fundraising, attracting students and adding buildings. A Harvard University study even lauds the president for setting goals and command of attack.

"Jack Ohle came in and is one of the most outstanding individuals I've ever worked with," Regent Ross Christensen said. "The college has never been stronger in its history."

Donations since 2001 have topped $80 million. Student enrollment has jumped 300 since 1998, the year Ohle took over. And $50 million worth of buildings and renovations enhance the campus -- with the promise of another hefty project on the way.

The consensus view: Wartburg is prospering under Ohle.

And yet, some faculty members are raising concerns.

The main point of contention is a proposed $30 million wellness center -- a 200,000-square-foot facility with an indoor pool, two running tracks and fitness area. Critics worry the expense and potential debt could hinder academics if bad times hit. The college's mortgage is already $50 million.

A newsletter circulated by a faculty group publicly defines the concerns: Wartburg could be submerged in too much debt by the wellness center; faculty morale is low; and Ohle's salary is too high.

How many faculty members share those views remains unclear.

The newsletter was published by Wartburg's chapter of the American Association of University Professors, a national group for academic freedom and shared governance. About half of Wartburg's faculty -- 55 professors -- belong to the group.

Professors are meeting to discuss the possibility of complaining to the board of regents -- effectively challenging Ohle's leadership.

"The faculty is a caring faculty and idealistic faculty that cares about the health of the community and expects to be an equal partner," said Paul Hedeen, an English professor.

On Monday, the debate attracted the attention of the campus newspaper, "The Trumpet." Student journalists cited what they called a "Wartburg Feud" based on a survey of faculty satisfaction by the UCLA Higher Education Research Institute.

Ohle suggests the newsletter does not paint a complete picture, but said the college will examine the issue.

Ohle declined repeated offers by the Courier to talk about the controversy. He cited a busy agenda at a conference he is attending in Washington, D.C. He did, however, answer questions relayed via e-mail. Ohle later forwarded the questions and his answers to most Wartburg campus e-mail accounts.

"The AAUP, or any other faculty group, is always welcome to express their opinions or concerns," he wrote. "My concern as president is that information disseminated about Wartburg be accurate and complete."

Administrators and regents dismiss the critics as a small group. Those questioning Ohle's leadership would like the debate to continue.

Next up

The idea for a wellness center began during the infancy of Ohle's presidency. Ohle, a former assistant football coach at Muskingum College in New Concord, Ohio, reached Wartburg's top job as an established money man.

When Ohle was a vice president at Drake University, he raised $320 million from 1987-97. Prior to that, he was a major fundraiser for two other private colleges -- Nebraska Wesleyan University in Lincoln, Neb., and Ohio Northern University in Ada, Ohio.

As Wartburg's leader, Ohle began a year-long planning process called Commission Wartburg, which engaged 235 faculty members, alumni and administrators and encouraged recommendations on improving all aspects of the college.

By 2000, goals were in place and new buildings were a priority.

Today, a new science center and student union are in use. The college also built a new dormitory and renovated the athletic field, expanding the stadium to seat 4,000.

Administrators say the proposed wellness center is the final piece.

So far, millions of dollars have been spent, mostly financed by bonds that remain as long-term debt on Wartburg's books. In 2002, just as the projects began, Wartburg's long-term debt was $10 million, according to filings with the Internal Revenue Service. By 2004, the figure swelled to $50 million. If the wellness center happens, Wartburg will owe $80 million.

"In the situation we are in, we can't do any major building for a few years after the wellness center," Regent Mark Baldwin said. "My gut feeling is that if we walk on campus in five or 10 years we won't see any more building."

That concept makes some in the dissident group uneasy.

Hedeen, the English professor, is concerned Wartburg's finances are stretched too thin. And he wants to know what will happen if funding dries up.

"We are worried if our debt service gets too high it will negatively affect students," he said.

Hedeen predicts without adequate funds, faculty numbers could shrink, class sizes might grow and the quality of education could suffer.

Gary Grace, a Wartburg vice president spearheading the wellness center, contends Wartburg administrators planned carefully.

"We have done this in a financially responsible manner. There is nothing to indicate the college is in a dire financial situation. We are in a position of strength," he said.

Wartburg owes creditors 43 cents of every dollar in assets, which gives the college the second highest debt-to-asset ratio in Iowa Intercollegiate Athletic Conference. Loras College in Dubuque is first with 53 cents.

Even so, Wartburg has a stable BBB credit rating from Standard & Poor's, which indicates the college is managing its financial affairs reasonably well. The rating also suggests adverse economic conditions or changing circumstances could weaken its ability to meet financial commitments.

Low spirits

After Commission Wartburg members identified the college's needs, refining the recommendations into tangible pursuits was largely left to Ohle, administrators and advisory boards.

The board of regents ranked the priority of projects and approved them. Ohle found the money and brought plans to the board.

Though the system appeared to work smoothly, some faculty members now say Ohle shuts them out of decision making. They contend morale is lower on campus than at peer schools, in part because professors feel they have little control over Wartburg's future.

"If buildings are the only thing that is important, then morale should be very high," said Warren Zemke, a chemistry professor. "But curriculum, students and decisions on campus help to explain morale."

Ohle made building look easy by helping to secure tens of millions of dollars in bonds and cut creative deals involving private developers, the city, Bremer County, the Waverly-Shell Rock School District and Hawkeye Community College.

Projects got done.

"Every square inch of new facilities has been designed to do one thing -- to create a better teaching/learning experience," Ohle wrote.

With everything else in place, one piece was missing: the wellness center. Ohle went to the city for help, as he did in 2003 when he wanted a $5.5 million dormitory.

At that time, Ohle tapped $1.8 million in county bonds by having a tax increment financing district established on a half-acre of Wartburg property. That never had been done locally before.

It worked. Wartburg provided the land to a developer eligible to receive government money.

Cardinal Construction of Waterloo pays taxes, which go toward repayment of the bond. Cardinal leases the space to Wartburg, which rents the rooms. In 20 years, after the debt is retired, the property will return to Wartburg.

In pursuing the wellness center, Ohle again approached the city, which benefits from Wartburg and increased enrollment.

Plans to get the city to provide up to $6 million for the facility had to be carefully conceived, Regent Ross Christensen said. Two times before Waverly residents voted down the city's attempt to build similar, but smaller centers.

Few were included in the nut-and-bolts decision-making process about Wartburg's wellness center to protect the project, Christensen said. Administrators were concerned too many players in the early going might have produced destructive misunderstandings.

The proposed plan has Waverly contributing a minimum of $1.2 million and then insuring revenue shortfalls for up to $4.8 million over eight years. In return, Wartburg will sell memberships to the public for about $50 a month.

"This has been a lengthy process that required the college and city of Waverly striking agreements that are sensitive … and could have set the whole thing back with too many negative influences," Christensen said.

Side affects

Morale on campus may reflect on Ohle's decision to restrict access to information about the center.

According to the newsletter, 45 percent of faculty members report relationships with the administration as "satisfactory" or "very satisfactory", down 3 percent from 2002. The figure is 15 percent below benchmark schools.

Fifty percent of Wartburg's faculty have considered leaving for another institution. By comparison, 37 percent at comparable schools have considered a move. At Wartburg, 56 percent of professors experience considerable "joy" in their work compared to 69 percent at other schools surveyed.

Ohle contends the newsletter highlighted only a few of the survey's questions and the college is analyzing all the results.

"Clearly, after my preliminary review of the results, I was disappointed," Ohle wrote. "I look forward to working with the faculty in understanding and improving faculty morale as reflected in the survey results."

Regent Christensen said the consensus among administrators was to let faculty members in on details about the wellness center proposal and explain the rationale after the project appeared it would fly.

But then some professors learned Wartburg officials -- including Grace, a Wartburg vice president and a Waverly city councilman -- held meetings with City Administrator Dick Crayne to hammer out fine points about the wellness center.

"It's fairly safe to say we felt slighted or bypassed," Hedeen said. "We still haven't heard what kind of real impact this will have on the academic budget."

Grace argues plenty of opportunity existed for faculty to get involved, beginning with Commission Wartburg. Administrators also held several informational meetings on campus since plans were made public in late October. And a public forum is scheduled for Monday's City Council meeting.

Too little, too late, says Hedeen, who contends the project is in motion and will likely break ground with little concern for debate.

"It's really a five-minute-past-midnight informational session," Hedeen said. "This may be the greatest deal ever, but it is hard to know that when faculty, students and other people have been left out."

President's service

Ohle's emphasis on growth makes some faculty members feel Wartburg's business side is overshadowing its function as an academic institution.

Hedeen described Ohle as an aggressive leader who moves quickly, whereas, professors are known for moving slowly and methodically.

"(Ohle) appears to have a desire to get things up and running, to streamline," Hedeen said. "If it's not his style, he at least approves of it."

Regent Mark Baldwin, however, offers a different interpretation. He praises Ohle for "finding a place at the table for everyone."

Ohle has implemented a planning structure that connects ideas from students, professors and administrators with those of several national advisory boards. Those groups, Baldwin said, are composed of "high-level people" with global vision.

Wartburg's board of regents includes the CEO of Blue Cross/Blue Shield of Illinois, a Pella Corp. vice-president and the executive vice president and chief financial officer of Hormel Food.

Regent Christensen is an orthodontist and influential developer who chaired Waterloo Mayor Tim Hurley's re-election campaign. Baldwin is CEO of Iowa Laser Technology in Cedar Falls, which serves the automotive, construction and fitness industries.

"Education at Wartburg is state of the art. Ohle doesn't miss anything societal -- he's in tune," Baldwin said.

And for that reason, Baldwin said, the board of regents pays Ohle more than $200,000 a year. Tax records show Ohle received $221,650 in 2004, but the college maintains it overreported Ohle's pay by $20,000 and is considering amending the filing.

Ohle is the second highest paid president in the Iowa Intercollegiate Athletic Conference, which is composed of Wartburg and eight other private colleges. President Jeffrey Bullock of the University of Dubuque made the largest salary in 2004 with $225,896. The lowest paid is President John Kerrigan at Loras College in Dubuque who made $151,524.

Baldwin feels Ohle is worth every penny.

"We know we've got a great individual whose marketplace is beyond the state of Iowa. We must give him a competitive salary," Baldwin said.

Some faculty members, though, maintain Ohle's salary seems too beefy when compared to amounts earned by his peers and by Wartburg employees.

The next highest paid person at Wartburg is David Ostrander, a vice president in charge of fundraising who made $114,292 in 2004.

On average, faculty members made $53,000, according to the newsletter.

Hedeen has trouble understanding how Wartburg, a college with a religious foundation, can pay Ohle the amount it does.

"I just have theoretical problems with that," he said.

Ohle appears to take the criticism with the success.

"Clearly, progress often brings rising expectations," Ohle wrote, "and one of the ongoing challenges will be to address those."

Contact Brian Spannagel at (319) 291-1570 or brian.spannagel@wcfcourier.com

Click here to read the entire e-mail interview with Wartburg President Jack Ohle»

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