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LA Decision: (1)(2)(3)(4)(5)
Response to the Louisiana Decision

Tulane's Bold Renewal
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Act 43 of 1884
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"Rebuilding" New Orleans

Union, Justice, Confidence
State Takeover and Rescue of Tulane's Academic Programs
The Louisiana Decision (Part 5)

The University of Louisiana was recast as the Tulane University of Louisiana by Act 43 of 1884, which provided that the university revert back to state control if it failed to honor certain obligations to the city of New Orleans and the citizens of Louisiana.

Tulane's recent activities in interstate commerce, foreign development, and its aggressive recruitment of out-of-state students constitute a flagrant violation of the stated franchise, thus triggering the return of Tulane's assets to state control as required by law.  A recommendation has already been made that Tulane's commercial activities be separated from its academic functions and managed by "Tulane Corporation or a similar entity," and that the university be reconstituted as a branch of the Louisiana State University System (LSU) and rededicated for the benefit of Louisiana citizens as intended by Act 43.

“I am impressed ... by Tulane's unique distinction as the only American university to be converted from state sponsorship to private status.”

--President Gerald R. Ford
Address at a Tulane University Convocation, April 23, 1975, The American Presidency Project, http://www.presidency.ucsb.edu/ws/index.php?pid=4859, accessed 09/24/08.

The Draconian measures ("Bold Renewal") recently instituted by Tulane administrators in an attempt to salvage the university's superstructure following the advent of Hurricane Katrina have caused great frustration and anxiety for students and faculty who have been impacted by those measures.  The incorporation of Tulane into the LSU System would permit the retention of many terminated faculty and the preservation of departments now slated for elimination.  Nicholas J. Altiero, newly appointed dean of the School of Science and Engineering, has already encouraged Tulane engineering students to register at the University of New Orleans (UNO, a branch of the LSU System) for classes no longer available at the Tulane campus [1].  According to Russell Trahan, dean of the College of Engineering at UNO, that school started offering 41 online courses in engineering in mid-October [2].

In a separate move designed to recruit Tulane engineering students not wishing to change their major to biomedical or chemical engineering, Johns Hopkins University has offered to accept transfers to its Whiting School of Engineering in Baltimore [3].

Now more than ever, the state of Louisiana needs to rescue one of its premier institutions as it teeters on the brink of collapse.  The proposal for state takeover should receive serious consideration before further irreversible actions are taken.  Concerned individuals can refer to the Internet-based forums listed below.  Please send an email to tulanelink@aol.com to add any other discussion groups that should be included here.

Tulane Reality Check http://tulanerealitycheck.blogspot.com
Tulane Forum (Daily Jolt) http://tulane.dailyjolt.com/forum/index.html
ReNewcomb Forum http://www.renewcomb.org/phpBB2/index.php
Save Newcomb College http://www.newcomblives.com
Save Tulane Engineering http://www.savetulaneengineering.org/forums/
E-Mails Critical of Renewal Plan http://renewal.tulane.edu/traditions_email.shtml
Inside Higher Ed http://insidehighered.com/news/2005/09/27/tulane
Concurring Opinions — Law School Forum http://www.concurringopinions.com/ archives/2006/04/leaving_tulane_1.html (delete space)
School of Medicine — SOM Forum http://www.somforum.com/index.php?showforum=39

The financial impact on the LSU System from Katrina-related damages to its Health Sciences Center in New Orleans could be a hurdle in the state takeover of Tulane [4].  While it is not clear how difficulties peculiar to the Health Sciences Center would affect other, unrelated sectors of the LSU System, it is nevertheless incumbent upon Governor Blanco to press the federal government for major state aid to salvage Louisiana's educational institutions and, failing that, to borrow from alternative sources [5].

In a move that could bring welcome relief to the LSU System, the Jefferson Parish Council, recognizing that "Tulane University will no longer offer training in civil, environmental, mechanical, electrical and computer engineering," passed a resolution on January 25, 2006, urging state and federal support for the training of engineers [6].

Resolution #104756 - requesting the Louisiana Congressional Delegation and the Jefferson Parish Legislative Delegation to support and endeavor to have enacted necessary legislation to support and encourage the training of engineers in Louisiana to effectively address the challenges unique to Louisiana and the New Orleans area for local coastal restoration, levee construction and other flood mitigation and protection systems. (Mr. Young)

Engineering students who planned to go to Tulane should seriously consider enrolling in the engineering programs offered by UNO.  Last year, nearly 1,500 graduate and undergraduate students were enrolled in UNO's College of Engineering [7].

UNO Dean Russell Trahan expects to see an increase in student enrollment because of Tulane's cuts.

"Engineering is not dead in New Orleans because Tulane has eliminated their engineering program," Trahan said.  "We've been graduating and supplying engineers to some of the top firms in the city.  We expect to see some local students who would normally go to Tulane come here.  We are undertaking an effort to enhance some of our programs to make them prominent." [7]

Tulane's Bold Renewal, which entailed extreme changes to the structure of the university, the elimination of many academic programs and the wholesale termination of employees was primarily justified by Tulane's claim of financial exigency. However, that claim may actually prove to be without merit because of insurance settlements and other sources of rebuilding income. In February 2006, Tulane Law Professor John K. Eason noted that the University would be able to keep its endowment intact [8], which reached $1 billion in 2007 [9].

Information gleaned from the public domain indicates that Tulane will succeed in recovering its financial losses. Two insurers, Lexington Insurance Co. and Zurich American Insurance Co., have already settled with Tulane for $100 million in claims, and Tulane engaged in litigation with a third insurer, Allianz Global Risks U.S. Insurance Co., for another $250 million in claims [10].

Tulane has also obtained funds from a variety of other sources for rebuilding: (1) $300,000 from the Department of Housing and Urban Development [11];  (2) $2 million from the Department of Education [12];  (3) $268,000 from the Corporation for National Community Service [13], later supplemented with another $100,000 [14];  (4) $200,000 from the Teagle Foundation [15];  (5) $750,000 from the Hurricane Katrina Fund run by former U.S. Presidents George H.W. Bush and Bill Clinton [16];  (6) $150,000 from the Fannie Mae Foundation [17];  (7) $145,000 from the Federal Emergency Management Agency (FEMA) [18];  (8) $100,000 from AmeriCares International [19];  (9) $14.8 million in federal aid allocated by Congress and distributed by the state [20];  (10) $15 million from a private foundation created by the Emir of Qatar [21];  (11) $1.25 million from the Economic Development Administration [22];  (12) $3.2 milliion from the state Board of Regents for faculty endowments [23];  (13) $5 million from the Carnegie Corporation for rebuilding [24];  (14) $11 million from the National Center for Research Resources to help develop junior research faculty [25];  and (15) $3.4 million from the U.S. Department of Education as a Hurricane Education Recovery Award [26].  Tulane officials also lobbied Congress for reimbursment of health-care related expenses, citing $6.8 million for uncompensated patient care and $3 million for other unreimbursed costs in 2005-2006 [27].

In December, 2006 Tulane University President Scott Cowen announced that the university's fund-raising campaign, dubbed "Promise and Distinction" — inaugurated just months before Katrina — had raised $600 million of its $700 million goal [28].  Tulane later reported that in 2006, it had received $76.3 million in charitable giving [29].  In 2007, Tulane's endowment reached $1 billion [9].  In 2009, Tulane announced that it will receive about $95 million from FEMA in supplementary assistance for its rebuilding program [30].  Subsequently, Tulane received $17.7 million from FEMA to repair storm damage to its library, another $16 million to replace and relocate the library's mechanical equipment, and additional funding requests for the library are being reviewed [31].

FEMA's largesse with Tulane stands in marked contrast to that agency's attitude toward Delgado Community College, the state's two-year public college in New Orleans, whose storm damaged buildings remained unchanged for more than four years after they were destroyed by the flood waters that accompanied Hurricane Katrina [32].

Tulane's financial success is difficult to reconcile with the claim of financial exigency that it used to justify its Bold Renewal plan.  Three months after the hurricane, Tulane purchased a condominium belonging to Papillon Associates for $13.2 million [33].  Moreover, Tulane's announcement that it will undertake a major expansion of its baseball stadium [34], open a new facility to manufacture stem cells [35], greatly expand its facilities in Covington, Louisiana to develop vaccines, diagnostics and therapeutics for infectious diseases [36], and extend its offerings in business administration to students in Alexandria, Louisiana [37] — where LSU already has programs in business administration [38] — lends credence to the conclusion that the severe measures forced upon the academic community by the Tulane Board of Administrators post Katrina were motivated by factors other than financial exigency.  Even Tulane's lobbying budget for 2006 ($350,000) was not diminished from previous years (which averaged $395,000 for the past nine years) [39].

Tulane will now share the expertise it has acquired by offering a new master's degree program in disaster management [40], and it has created a new, public-funding-eligible, Center for Public Service [41].

The American Association of University Professors (AAUP) agreed that Tulane was motivated by factors other than financial exigency and censured the university for its post-Katrina conduct [42].

During a convention of the American Petroleum Institute held in New Orleans in mid-October of 2007, John Felmy, the institute's chief economist, pointed out that the energy industry's aging work force could retire within 10 years and is facing a critical labor shortage.  Because their training requires a four-year degree, engineers are in particular demand, he said.  Chris John, president of the Louisiana Mid-Continent Oil & Gas Association, added: "We need to make sure to redouble our efforts to not only train students, but keep them in our state" [43].

References and Notes
  1. Dean Altiero, "School of Engineering Sophomores" [message], December 12, 2005 (http://renewal.tulane.edu/students_engineering_sophomores.shtml), accessed 12/28/05.

  2. Thomas K. Grose, Mary Lord, & Lynne Shallcross, "Down But Not Out," PRISM, Vol. 15, No. 3, November, 2005, American Society for Engineering Education (http://www.prism-magazine.org/Nov05/), accessed 01/08/06.

  3. "Announcements - Johns Hopkins Engineering," January 6, 2006 (http://engineering.jhu.edu/news-headlines/), accessed 01/08/06.

  4. Alison McCook, "Hundreds of La. faculty furloughed; In wake of Katrina, Louisiana State University Health Sciences Center releases 430 staffers without pay, benefits," The Scientist, Vol. 6, No. 1, December 9, 2005 (http://www.the-scientist.com/article/display/22855/), accessed 01/08/06.

  5. On May 1, 2006, the government of Qatar announced a $61.1 million grant to Louisiana institutions, of which $10 million was earmarked for Tulane.  Other major recipients included Xavier University ($17.5 million), Habitat for Humanity ($22 million) and LSU ($3.3 million).  See: John Pope, "Qatar gives millions in relief grants; Education, health, housing all benefit," The Times-Picayune, New Orleans, May 3, 2006, p. B-1.

  6. Jefferson Parish Council Meeting, Gretna, LA, January 25, 2006, Item 43, Resolution #104756 (http://jp-appserver.jeffparish.net/AGENDA/agenda_minutes.pdf), accessed 01/27/06.  See also: doreilly, "Jefferson Parish Resolution Passed," Save Tulane Engineering [Blog], posted January 25, 2006, 12:52 pm (http://www.savetulaneengineering.org/forums/viewtopic.php?t=284), accessed 01/27/06

  7. April Capochino, "Major Backlash; Tulane engineering cuts face opposition," New Orleans CityBusiness, January 23, 2006 (http://www.neworleanscitybusiness.com/viewStory.cfm?recID=14515), accessed 01/30/06.

  8. John K. Eason, "The Impact of Katrina on Tulane Law School" [Blog], February 9, 2006, http://taxprof.typepad.com/taxprof_blog/2006/02/eason_on_the_im.html, accessed 07/17/06.

  9. Mike Strecker, "Tulane University's Endowment Reaches Historic $1 Billion Mark," Tulane University Magazine - News, July 27, 2007, http://www2.tulane.edu/article_news_details.cfm?ArticleID=7481, accessed 07/27/07.  See also: "Letter from the President," Tulane University, September 1, 2007, http://tulane.edu/administration/president/speeches_letters/upload/preslettersep2007.pdf, accessed 04/08/08.  [Note: In 2009, Tulane shifted top administrators into high gear to chase after another $1 billion.  See: John Pope, "Tulane launching $1 billion drive; University seeking to beef up endowment," The Times-Picayune, New Orleans, September 13, 2009, Metro, p. 1.]

  10. Mike Strecker, "Tulane Countersues Insurer in $250 Million Coverage Dispute," Tulane University Magazine - News, July 14, 2006, http://www2.tulane.edu/article_news_details.cfm?ArticleID=6648, accessed 07/14/06.

  11. "Tulane University Receives $300,000 HUD Grant" [News Release], pr@tulane.edu, received 03/15/06.

  12. April Capochino, "N.O. Colleges receive $2M apiece to woo students back," New Orleans CityBusiness, January 11, 2006, http://www.neworleanscitybusiness.com/uptotheminute.cfm?recid=2053, accessed 01/11/06.

  13. Madeline Vann, "New Funding Expands Tulane Students' Rebuilding Efforts," Tulane University Magazine - News, February, 2006, http://www2.tulane.edu/article_news_details.cfm?ArticleID=6229, accessed 02/02/06.

  14. "Higher Education Initiative to Help Rebuild Gulf Coast Launched by Housing Secretary and National Service Chief" [News Release], U.S. Department of Housing and Urban Development, November 1, 2005, http://www.hud.gov/content/releases/pr05-153.cfm, accessed 07/27/06.

  15. "Teagle Foundation Announces $600,000 Grant for Hurricane Relief Efforts at Dillard and Tulane" [News Release], The Chronicle: Hurricane Update, December 7, 2005, http://chronicle.com/katrina/index.php?id=107, accessed 07/27/06.  See also: "Teagle Foundation Announces $1.5 Million in New Grants" [News Release], Standard Newswire, March 22, 2007, http://www.standardnewswire.com/news/46369813.html, accessed 03/26/07.

  16. "Bush-Clinton Katrina Fund Aids Tulane," Tulanian, Summer, 2006, p. 53.

  17. "Hurricane Relief," Philanthropy News Digest, The Foundation Center Directory, http://fdncenter.org/pnd/hurricane/corporations.jhtml, accessed 03/20/06.

  18. Brian K. Sullivan, "Tulane, Post-Katrina, Sees Enrollment Down, Bills Up," Blumberg.com, August 30, 2006, http://www.bloomberg.com/apps/news?pid=20601103&sid=aBPcxI2HlWKo&refer=us, accessed 10/05/06.

  19. "Approved Hurricane Relief Grants," AmeriCares International, http://www.americares.org/site/c.ivIYIjN3JyE/b.2664049/k.98CB/Approved_Grants.htm, accessed 06/25/07.

  20. David Epstein, "Doling Out Katrina Relief," Inside Higher Ed, February 9, 2006, http://insidehighered.com/news/2006/02/09/katrina, accessed 02/20/06. See also: Jan Moller, "Storm aid for colleges fails state panel's test; It doesn't like plan to distribute money," The Times-Picayune, New Orleans, February 18, 2006, p. A-10.

  21. Michael Strecker, "Tulane University Receives $10 Million from Qatar," Tulane University Magazine - News, May 2, 2006, http://www2.tulane.edu/article_news_details.cfm?ArticleID=6478, accessed 05/02/06.  See also: John Pope, "Qatar gives millions in relief grants; Education, health, housing all benefit," The Times-Picayune, New Orleans, May 3, 2006, p. B-1.  See also: Michael Strecker, "Tulane Receives $5 Million More from Qatar," Tulane University Magazine - News, September 8, 2006, http://www2.tulane.edu/article_news_details.cfm?ArticleID=6772, accessed 09/08/06.  See also: Alicia Duplessis, "Health Care on the Move," Tulane University New Wave, April 24, 2008, http://tulane.edu/news/newwave/042408_qatar.cfm, accessed 04/24/08.

  22. John Pope, "Higher Education Notes; Tulane health center gets grants; Federal cash goes to building, research," The Times-Picayune, New Orleans, June 10, 2006, p. B-1.

  23. Madeline Vann, "Board of Regents Funds Chairs, Professorships at Tulane," Tulane University Magazine - News, September, 2006, http://www2.tulane.edu/article_news_details.cfm?ArticleID=6822, accessed 09/27/06.  See also: Madeline Vann, "Board of Regents Funds Chairs, Professorships," Tulane University Magazine - News, October 2, 2006, http://www2.tulane.edu/article_news_details.cfm?ArticleID=6830, accessed 10/02/06.

  24. John Pope, "Grants go to Dillard, Tulane and Xavier; Carnigie Corporation invests in rebuilding," The Times-Picayune, New Orleans, September 19, 2007, Metro, p. 1.  See also: Mike Strecker, "Carnegie Funds Bolster Faculty, Public Service," Tulane University Magazine - News, September 19, 2007, http://www2.tulane.edu/article_news_details.cfm?ArticleID=7582, accessed 10/02/07.  See also: John Pope, "Cowen receives Carnegie award; He's recognized for work with schools," The Times-Picayune, New Orleans, September 22, 2009, Metro, p. 1.

  25. John Pope, "Kidney research is given millions; Hypertension studies also in Tulane grant," The Times-Picayune, New Orleans, August 15, 2007, Metro, p. 1.  See also: Arthur Nead, "Major Grant Boosts Hypertension Research," Tulane University Magazine - News, August 16, 2007, http://www2.tulane.edu/article_news_details.cfm?ArticleID=7513, accessed 08/16/07.

  26. Kathryn Hobgood, "Tulane University Awarded Nearly $3.5 Million for Hurricane Recovery," Tulane University Magazine - News, August 31, 2007, http://www2.tulane.edu/article_news_details.cfm?ArticleID=7548, accessed 08/31/07.  See also: "N.O. colleges given millions for recovery," The Times-Picayune, New Orleans, September 14, 2007, National, p. 14.

  27. Suzanne Johnson, "Taking the Healthcare Message to Washington," Tulane University Magazine - News, March 15, 2007, http://www2.tulane.edu/article_news_details.cfm?ArticleID=7192, accessed 03/16/07.

  28. Scott Cowen, "Tulane Talk," Tulane University, December 8, 2006, http://www2.tulane.edu/tulane_talk/tt_120806.cfm, accessed 12/12/06.  See also: Emily Hohenwarter, "Promise and Distinction renews goals," Hullabaloo, Tulane University, December 8, 2006, http://www.thehullabaloo.com/..., accessed 12/18/06.

  29. Bruce Nolan, "People still open wallets for N.O.; But nationally, aid for disasters falls," The Times-Picayune, New Orleans, July 2, 2007, National, p. 1,.

  30. "Tulane receives FEMA windfall; Nearly $33 million to pay for storm fixes," The Times-Picayune, July 22, 2009, Metro, p. 1.

  31. John Pope, "Tulane library getting FEMA aid; $16 million to help replace machinery," The Times-Picayune, September 3, 2009, Metro, p. 1.  See also: Casey Rasch, "FEMA grants money," Tulane Hullabaloo, September 11, 2009, http://thehullabaloo.com/..., accessed 09/14/09.

  32. John Pope, "Delgado forced to turn away students; Impasse with FEMA over repairs leaves campus short on space," The Times-Picayune, New Orleans, September 5, 2009, National, p. 1.

  33. "NEW ORLEANS REAL ESTATE TRANSFERS," The Times-Picayune, New Orleans, December 10, 2005, Inside Out, p. 21.  Note that broker, Mariposa Condominiums LLC, netted at least $3 million in that transaction.  See also: "Tulane buys apartments; Complex to house grad students," The Times-Picayune, New Orleans, December 7, 2005, Money, p. 1.  The Lower Garden District Papillon apartments (see PDF) rent for about $1,000 to $1,500 per month and are not restricted to students.

  34. Mike Strecker, "Tulane University Will Re-Start Major Expansion of Turchin Stadium," Tulane University Magazine - News, June, 2006, http://www2.tulane.edu/article_news_details.cfm?ArticleID=6620, accessed 07/01/06.  See also: "Wave of Progress for Turchin Stadium," Tulane University Magazine - News, December 14, 2006, http://www2.tulane.edu/article_news_details.cfm?ArticleID=7001, accessed 12/22/06.  See also: "New Park, New Season for Baseball," Tulane University Magazine - News, October 2, 2007, http://www2.tulane.edu/article_news_details.cfm?ArticleID=7612, accessed 10/02/07.  See also: "Play Ball! 36 Home Games in New Stadium," Tulane University New Wave, November 7, 2007, http://tulane.edu/news/newwave/110707_baseball.cfm, accessed 11/07/07.

  35. Fran Simon, "Tulane to Announce Opening of New Facility to Manufacture Adult Stem Cells," Tulane University Magazine - News, July, 2006, http://www2.tulane.edu/article_news_details.cfm?ArticleID=6653, accessed 07/17/06.

  36. Madeline Vann, "Expansion of Tulane Research Facilities Brings Money, Jobs to Northshore," Tulane University Magazine - News, January, 2007, http://www2.tulane.edu/article_news_details.cfm?ArticleID=7074, accessed 01/25/07.  See also: Madeline Vann, "Expansion of Tulane Research Facilities Brings Money, Jobs to Northshore," Tulane University Magazine - News, January 26, 2007, http://www2.tulane.edu/article_news_details.cfm?ArticleID=7082, accessed 01/26/07.  See also: Bruce Hamilton, "Tulane primate center kicking off expansion; Upgraded research facility estimated price tag is $63 million," The Times-Picayune, New Orleans, January 27, 2007, p. A-1.

  37. "Alexandria Executive MBA," Freeman School of Business, Tulane University, http://www.freeman.tulane.edu/emba/alex, accessed 08/03/06.  See also: Station KDAQ, Shreveport, 89.9 FM [Commercial Announcement], August 3, 2006.

  38. "Department of Business Administration," Louisiana State University at Alexandria, http://business.lsua.edu, accessed 08/14/06.

  39. OpenSecrets.org, "Lobbying Spending Database: Tulane University of Louisiana Summary, 2006," http://www.opensecrets.org/lobbyists/..., accessed 06/28/07.

  40. John Pope, "Tulane will offer degree in disaster management; Courses target police, emergency workers," The Times-Picayune, New Orleans, August 19, 2006, p. B-1.

  41. "Center for Public Service," Tulane University, http://cps.tulane.edu, accessed 10/03/06.

  42. Scott Jaschik, "A Flood of Censure," Inside Higher Ed, June 11, 2007, http://www.insidehighered.com/news/2007/06/11/aaup, accessed 06/11/07.  See also: Darran Simon, "Group votes to censure four local universities; Administrators dispute rights-abuse claim," The Times-Picayune, New Orleans, June 12, 2007, Metro, p. 3.  See also: Stephen Maloney, "Without Honors; Five N.O. colleges censured for post-storm firings," New Orleans CityBusiness, July 2, 2007, http://www.neworleanscitybusiness.com/viewStory.cfm?recID=19457, accessed 07/05/07.

  43. Kimberly Quillen, "Energy Industry hurting for labor; Efforts stepped up to recruit students," The Times-Picayune, New Orleans, October 17, 2007, Money, p. 1.


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