By John J. Neuhauser

Very soon, the cold beauty of winter in Vermont will be upon us, but now, the ­foliage is brilliant, and we are surrounded by the faces of students, who keep things lively throughout the year and perhaps especially as the days grow short.

While this continues to be a difficult time for the economy in general and higher education in particular, it is affecting institutions differentially. Many heavily endowed private colleges are suffering because their endowments have declined in value and they depend on investment earnings to fund operating budgets, and also because a large portion of the remaining endowment is illiquid or subject to legal spending limitations, due to a decline in overall market value.

Some of the large public universities are also not only hampered by the capacity of greatly reduced endowments to fund operations, but they have also had to cope with some drastic cuts in state funding. At the same time, demand for public higher education has increased, often dramatically, because of the lower tuition offered to in-state students.

Saint Michael’s is in a different position. While the endowment did decline over the past year and annual giving contracted slightly, we are not as dependent as others on investment earnings or annual gifts to support operations. Instead, the college relies primarily on tuition revenue, so we are directly dependent on the number of students who are interested in the type of education Saint Michael’s provides and on the ability of their families to afford such an education.

Certainly, this presents a challenge in difficult economic times, but it also forces us to examine what we do in a new light in order to be sure that we are true to the institution’s heritage and also mindful of new fiscal realities. Maintaining a full range of curriculum ­offerings, increasing financial aid and providing a high-quality residential experience are critical to continued success. We believe firmly that a liberal arts education is the best preparation for a life of learning and can best be presented in a residential setting which explicitly recognizes that young adults develop socially as well as intellectually. And, all this should occur in an environment that seriously examines issues of faith.

It remains to be seen how colleges and universities in this country will change as we move out of the recession. In the past, higher education has weathered such storms very well, but there are always some shifts after an economic shock. In the end, it will fall to all members of the Saint Michael’s community, including alumni, parents and friends, to ensure that the college can continue to deliver an education that deliberately strives to form individuals.

I believe we do a very good job in this regard, and I base my assessment on ­countless ­conversations I have had with students—their four years in Winooski Park produce a ­dramatic difference on many fronts. Yet, it is a case we must continually make. The pages that follow offer several windows into this world, a world which demands that students are educated on multiple dimensions by all members of the community. Saint Michael’s is a remarkable place to grow and learn what matters.