Hebrew College Update

Rabbi Daniel L. Lehmann, President
June 4, 2010

Dear Friends,

On the heels of a very successful tribute dinner held on May 23 and in anticipation of our 85th commencement, I want to share with you some of the major accomplishments of the last year, and highlight some changes that are on the Hebrew College horizon.

Many have worked hard, throughout these difficult economic times, to achieve dramatically improved financial results for the College and a financial restructuring that puts the College on stable footing for the first time in many years. Further, Hebrew College’s strong new financial management team significantly improved our financial controls, forecasting and reporting. At the same time, the College refocused and enriched programming and is plotting out a bright future.

While we draw on the College’s 90 year heritage, this is not the College of the recent past. I hope that you join me in feeling relief at the stability we achieved for the College, that you will rekindle your passion for the College with its refined mission and solid programming foundation, and that you will engage in the exciting possibilities that exist for our future.

Financial Leadership
Over the last two years, we at Hebrew College recognized that the long term financial health of the institution required a steadfast commitment to our fiscal responsibility. We took a series of steps to reinforce and professionalize our resources at all levels, bringing in new financial leadership. Our high functioning business office now provides financial transparency and tight management, as well as a high level of engagement and collaboration with CJP. In addition, we added many new board members who brought strong business acumen, experience and talent and who provide frequent and vigilant oversight. They have been supplemented by the establishment of an active board of overseers. We have been tremendously blessed to have all these bright minds working on our behalf. Our financial results are a direct result of the collaboration of this superlative dedicated team.

Financial Improvements
We recently terminated our $2 million interest rate liability (swap) at a significant discount. By eliminating this onerous contract, we successfully wiped the slate clean on a significant element of our real estate debt.

Perhaps the most exciting news on the financial front is that we are making great progress on a negotiated resolution of our real estate debt, the single largest challenge to our long-term financial stability. Based on the detailed discussions with our creditors, it is our clear expectation that our campus and our various programs will remain on “the hill” in Newton Centre as we finalize an agreement that will terminate our debt obligation. We are grateful for the cooperation of our creditors and CJP in working with us to achieve this important milestone in our financial recovery.

We will begin FY 2011 anew with a break-even budget based on realistic revenue assumptions and a new cost structure. This is the culmination of a two-year systematic and judicious cost cutting program made possible by our new financial team and strong board leadership. In total, we decreased expenses by 50% between FY 2008 (actual) and FY 2011 (projected budget), or approximately $9 million.

The community’s generosity continues to support the College. In the last three months alone we raised over $1.4 million to facilitate our debt resolution and provide annual operating needs and we are extremely grateful to our loyal donors and supporters. The proceeds of the tribute dinner in honor of Ted and Joan Cutler also exceeded our budgeted goal. The dinner raised $500,000 in support of our current operating expenses.

Expanded and Enriched Programming
One of the things I find most remarkable is that we have been cutting costs and resolving debt issues without eliminating core programming. Simultaneously, we have initiated a number of exciting new endeavors. They include: 

• Launching a new EdD program in collaboration with Northeastern University; 
• Increasing the enrollment of the Rabbinical School and successfully placing our first graduating class; 
• Expanding our Adult Education (Me’ah) programs in collaboration with CJP; 
• Expanding our Jewish Special Education program and our leadership role in this developing field; 
• Strengthening our partnerships with the Pardes Institute and BBYO; 
• Establishing the School of Jewish Music from the Jewish Music Institute; 
• Expanding our online degree and certificate offerings; 
• Strengthening our relationship with Andover Newton Theological School and expanding our interfaith activities; 
• Expanding our leadership in youth programming including the establishment of the Makor middle school program in partnership with local congregations. 

This Year’s Commencement

At the College’s commencement at Congregation Mishkan Tefila in Chestnut Hill this Sunday, Edgar Bronfman, renowned businessman, Jewish leader and philanthropist, will receive an honorary doctorate as will Betty Brudnick and Paula Hyman. Ms. Brudnick established the College’s Irving Brudnick Chair, is a Prozdor graduate, was an active College Board member from 2001 to 2008 and is now a Trustee Emerita. Dr. Hyman, a renowned Jewish history professor at Yale University and successful advocate for raising the status of women in Judaism, is a graduate of Prozdor and earned a bachelor’s degree in Jewish education from Hebrew College.

With one of the largest groups of graduates in our 89 years, the College will grant masters degrees, bachelors degrees and certificates to 63 students, ordain 13 rabbis and one cantor, award 120 Me’ah certificates and graduate 143 Prozdor students. This group will join other Hebrew College trained Rabbis, Cantors and Jewish educators who are leading synagogues, schools and institutions as well as the many Prozdor and Me’ah graduates who are so actively contributing to Jewish life.

Bright Future
Hebrew College has accomplished an extraordinary amount in the past few months, as well as in the past two years. From a position of financial stability, we are also considering strategic partnership alternatives with a variety of well established academic institutions. We will continue to retain, expand and enrich our programming, as we continue long term strategic planning.

I want to thank the many community members who have worked so diligently to ensure that Hebrew College remains a vibrant institution. We appreciate your hard work, your dedication to this beloved institution and your many contributions. We will keep you apprised as plans unfold and new details emerge.

Shabbat Shalom,

Rabbi Daniel Lehmann
President