Baylor's Financial Position
The decade in which Baylor 2012 guided University operations saw the institution make significant progress toward fulfilling its aim to be a preeminent research university with a vigorous Christian commitment. However, as we prepared to implement this successor strategic vision, it was readily apparent that the principal tactics employed to finance much of the growth and improvement realized during Baylor 2012 — substantial increases in undergraduate tuition and accessing the institution’s previously under-utilized debt capacity — no longer constituted opportunities for significant growth as was the case a decade ago.
Pro Futuris emphasizes that efforts will need to be redoubled to grow substantially the University’s endowment and diversify Baylor’s revenue streams, including increasing funded research and expanding professional education initiatives. Additionally, it will be incumbent upon the University to embark on a deliberate process of ongoing programmatic and financial self-examination to allow for strategic reinvestments in itself. Therefore, it is imperative for the University to endeavor to reduce dependency on undergraduate tuition income, especially in areas of the University that do not enhance undergraduate educational experiences.
The University is undergirded by a strong financial position. Our credit rating agencies have recently confirmed our AA- bond rating based on the strength of the demand for a Baylor education and the sound management practices that we follow. We have been able to offer competitive faculty and staff salaries as well as provide modest annual raises to attract and retain the best employees who embrace our mission.