Part One
Decline and Search for Direction

Introduction
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In the summer of 1995, Keystone College, a private liberal arts junior college located northeastern Pennsylvania, found itself on the verge of demise. Sharply declining enrollments, deteriorating facilities, and the resignation of the President and the Dean of the College left the college financially vulnerable and leaderless. The situation was so critical that papers outlining Keystone's "plan of dissolution" had been drawn up by the Board of Trustees and placed on file in Miller Library.

For the many loyal Keystone employees, this appeared to be the inglorious end to a once vibrant and lively institution which had served the educational needs of the local community for nearly 130 years. Keystone had been built by hand by community residents and for many years was an integral part of the local economy, not only educating the citizens but providing employment and social opportunities as well. Keystone had weathered other crises in its history and managed not only to survive but to prosper. However, the declining private junior college market, and the failure of Keystone's administration and Board of Trustees to recognize and react to this decline, brought the college to the brink of financial insolvency. This time, some faculty feared, the school was beyond salvation.

Location & Context of Keystone

Keystone College is located in La Plume, PA, a rural community 15 miles west of Scranton, PA, and 55 miles south of Binghamton, NY, in the Endless Mountains region of northeastern Pennsylvania. The campus occupies 270 lush acres adjacent to U.S. Route 6, a major east-west thoroughfare stretching from Cape Cod to Chicago. The campus proper is bordered by Route 6 to the north and Nokomis Creek to the south; much of the school's land remains undeveloped. The two closest communities of any significant size are Clarks Summit (1997 population 5,433) eight miles to the east, and Tunkhannock (1997 population 2,251) 13 miles to the west. The western edge of the campus abuts the village of Factoryville (1997 population 1,310); while Clarks Summit and Tunkhannock contain major commercial and business areas, Factoryville is essentially a settlement of modest homes with a Post Office, bar, and small grocery store. College Avenue, the primary vehicular boulevard on campus, extends west to become Main Street in Factoryville. It appears that the college alone constitutes the "town" of La Plume. The Keystone campus straddles the line dividing Lackawanna and Wyoming counties. The Endless Mountain area is characterized by thickly wooded, rolling hills and abundant wildlife. Scranton and Wilkes-Barre, 15 miles east of Keystone, are the only two metropolitan centers. The region is dotted with small villages, called "boroughs," some of which consist of a few houses clustered around an intersection. Outdoor activities such as hunting, fishing, and cross-country skiing are popular.

Lackawanna county, which extends east from Keystone's campus and includes the city of Scranton, covers 459 square miles and in 1990 had a population of 219,039, of which 97.7% classified themselves as "native population." Eighty eight point six percent of residents were born in the state of Pennsylvania; 73.3% were high school graduates and 14.3% possessed a bachelor's degree or higher. 16.8% of the population resided in rural or farm areas. The ethnic composition was more than 95% White. The U.S. census homepage lists Lackawanna county's 2000 population as 213,295 but does not yet have updated data on specific demographic categories. (www.quickfacts.census.gov/qdf/states/42/)

Wyoming county, lying west of the Keystone campus, covers 397 square miles and in 1990 had a population of 28,076, of which 99% classified themselves as "native population." Eighty one point nine percent of residents were born in the state of Pennsylvania; 77.6% were high school graduates and 13.2% possessed a bachelor's degree or higher. One hundred percent of the population resided in rural areas. Like Lackawanna county, the ethnic population was more than 95% White. Census data from 2000 shows that the population of Wyoming county has changed little over the past decade. Again, updated data for the other demographic categories is not yet available. (www.quickfacts.census.gov/qdf/states/42/)

Two private two-year colleges, three public two-year colleges, five private four-year colleges, two public four-year colleges, and three two-year "branch" campuses of Pennsylvania State University are located within a 50 mile radius of Keystone. The University of Scranton and Marywood University in Scranton, King's College and Wilkes College in Wilkes-Barre, and College Misericordia in Dallas are all private liberal arts colleges located within 25 miles of Keystone and could be viewed as its strongest competitors. Binghamton University, a comprehensive doctoral university in the State University of New York higher education system, is not considered by Keystone administrators to be a major competitor. [Appendix 1: Competitor Profiles]

Historically Keystone has maintained strong ties to the local community. Fifty nine percent of its graduates find employment within 50 miles of the college, and Keystone has made it a point to be responsive to the professional needs of the community (within its mission as a liberal arts college). As one college administrator noted, people who grow up in the Endless Mountains area tend to remain there or return after time away. The college emphasizes its history and connection to the local community, co-sponsoring numerous activities and events with local businesses and organizations. Keystone leadership actively cultivates the institutional saga of Christy Mathewson, a Factoryville native who attended Keystone Academy and went on to study at Bucknell University. Mathewson became a star pitcher for the New York Giants and was one of the first five men inducted into the Baseball Hall of Fame. Keystone's athletic teams are nicknamed "The Giants," Mathewson memorabilia is on display in the Gambal Athletic Center, and in mid-August Keystone and the community of Factoryville host "Christy Mathewson Day."

History of Keystone

Keystone College originated as Keystone Academy and was chartered in 1868 as a private institution to provide education to the children of Factoryville, PA, and neighboring communities. At the time of its founding, Keystone was the only secondary school located between Scranton, PA, and Binghamton, NY. Initially classes were held in the Factoryville Baptist Church, but in 1870 ground was broken a few blocks down the road in La Plume, and construction of Main Hall, Keystone's first building, commenced. Main Hall and several other early Keystone buildings were constructed by volunteers from Factoryville, a fact which occupies a notable place in Keystone history and has become a cornerstone in Keystone's traditional mission of responding to the educational needs of the community. The academy was co-educational and residential from the start. Students were charged tuition per academic subject and were housed with families in Factoryville. The first principal of the Academy was John Harris, a graduate of the University of Lewisburg (later Bucknell University). In 1926 Main Hall was re-christened Harris Hall in honor of Keystone's first principal.

The academy stressed education in mathematics, sciences and languages. Courses in vocal and instrumental music, and a "commercial curriculum" in banking, bookkeeping, business forms, commercial correspondence and law, and business arithmetic was also offered. The essence of those curricula remain at Keystone today, with slight modifications to incorporate changes in technology and local employment needs.

In addition to Christy Mathewson, notable graduates of Keystone Academy included Dr. L. Douglas Meredith, Vice-President of the National Life Insurance Company; Dr. Charles Bunnell, former President of the University of Alaska; and Dr. Edwin Walter Kemmerer, Princeton professor and noted world economist.

With the expansion of public secondary education in the early 1900s, Keystone saw its enrollments drop and in a situation similar to what it would face sixty years later, found itself in financial distress and facing closure. Curtis Coe, Keystone's principal at the time, suggested the school be transformed into a private junior college. A group of Scranton businessmen raised funds to pay the college's outstanding debts, and in 1934 it was re-chartered as Scranton-Keystone Junior College (ten years later the name was shortened to Keystone Junior College). Keystone retained its curricular emphasis on liberal arts, but now shifted its focus to providing solid preparation for students planning to transfer to four-year colleges. In addition, several pre-professional programs were established, the most notable in engineering. During World War II, Keystone housed a training center for the nurse cadet corps.

In the late 1960s and early 1970s, under the leadership of President Harry K. Miller, Keystone experienced significant growth and many new buildings and residence halls were constructed. In response to community needs, during the late 1960s, the curriculum was officially divided into two tracks: "transfer" liberal arts, and "terminal" associate degrees. However, the school's liberal arts emphasis was maintained even in the associate degree programs, which included required coursework in English, mathematics and science. During this decade the college developed a strong cultural arts department, including music, theatre and journalism.

In 1975, the Weekender Program was established, allowing students to pursue a traditional Keystone degree while balancing family and professional responsibilities by attending classes one weekend per month. The Weekender Program proved so successful that in 1993 a "branch" campus (Weekender Program only) was opened in the town of Towanda, located 50 miles west of La Plume. In 1978, Keystone entered into an articulation agreement with nearby Wilkes College (now Wilkes University) to provide baccalaureate degrees through the Weekender Program. In 1995 Keystone dropped the "Junior" from its name and became Keystone College, although at that time its degree offerings were still exclusively two-year.

Keystone in 1995-96
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Student Demographics

In the fall of 1995, Keystone enrolled 488 full-time students, a decrease of 36% since 1990. Roughly half the students lived on campus, leaving nearly 140 unoccupied dormitory spaces. Part-time enrollment numbered 421, down just slightly from 1990, but the majority of those students were enrolled in the Weekender Program at La Plume. Pennsylvania residents comprised 75% of the student body, with foreign students totaling 5%. Keystone's student body drew heavily from the local community, with marketing targeted toward regional high schools and "word-of-mouth" among alumni. Gender was evenly split at 50%. Several minority groups were represented; although an exact figure is not available, administrators spoke proudly of the diversity of cultures and ethnicities represented on campus and the fact that most minorities considered Keystone to be a "welcoming place." The mean composite SAT score of entering freshmen was 742. [Appendix 2: Enrollment Trends 1990-1995]

Administration and Faculty

According to the Keystone College Catalog, during the 1995-96 academic year Keystone employed a total of 32 faculty, six of whom possessed a Ph.D./Ed.D. degree, 15 of whom had received at least one degree from a local university (Marywood University, University of Scranton, Wilkes University, Binghamton University), and 5 of whom were themselves Keystone alumni. No "adjunct" faculty were listed, and the catalog did not indicate whether the faculty were full- or part-time. Keystone offers tenure, although the college has never sponsored a chapter of the AAUP.

College administration consisted of the President and four Vice Presidents (Financial Affairs, Enrollment Services, Dean of the College, and Marketing/Institutional Advancement). In late 1995 the President streamlined the Cabinet from four Vice-Presidents to two, Financial Affairs and Academic Affairs, with Enrollment Services reporting to Academic Affairs and Advancement reporting to Finance. However, this arrangement was short-lived and less than a year later the structure reverted to four Vice Presidents. [Appendix 3: 1995 organizational chart] Two of the administrators held local degrees, and one was a Keystone alumna.

Board of Trustees

The 1995-1996 Board of Trustees consisted of 37 members, 33 of whom were drawn from the greater Scranton-Wilkes Barre area, and 11 of whom were Keystone alumni. Only four were from outside the state of Pennsylvania (two from New Jersey and one each from New York City and Washington, D.C.). Five members are listed without affiliation or location. (Appendix 4: 1995-96 Keystone College Catalog).

Curriculum

Keystone's curriculum has always been focused on traditional liberal arts. The school's 1995 mission statement read, in part:

In 1995-96, Keystone offered Associate in Arts (AA), Associate in Fine Arts (AFA), Associate in Science (AS), and Associate in Applied Science (APS) degrees in 38 academic programs or "majors," some of which were designed as terminal two-year degrees and others designed specifically for transfer to a four-year baccalaureate program. Keystone's academic programs outnumbered its faculty. [appendix 4: 1995-96 degree programs]. One-year certificate programs in Business and Microcomputers were available. In addition, two "general" curricula were offered, "Undeclared" and "Liberal Arts," which were intended for students needing flexibility in their course selection and wishing to explore a wide variety of subjects. Keystone operates on the semester system; while the school's 1995-96 catalog included Fall (September-December) and Spring (January-May) calendars, no Summer schedule is listed.

Each associate degree program included a core curriculum and distribution requirement. The core curriculum, which was adopted in 1979, consisted of courses in study skills, critical and analytical reading, basic algebra, speech, two semesters of English, and three courses in physical education/wellness. The distribution requirement entailed six hours of course work in each of three academic areas: arts and humanities, social and behavioral sciences, and Mathematics and science. Students also had the option of pursuing independent study and internships for credit.

In 1996 Keystone established the Keystone Promise, which incorporates the "Keystone Experience" a four-part integrated learning program designed to "provide students with opportunities in and beyond the classroom that engage them as actives participants in the liberal arts tradition of the college." The Experience consist of a first-year College Seminar intended to help students "adjust to and bond with the college; develop a better understanding of the learning process and their role in it; and acquire the skills necessary for academic, personal and career success"; a Work Experience (on or off campus; internship, apprenticeship, cooperative education or volunteer work); Portfolio Development, which allowed students to "document their level of achievement and competency in meeting program objectives"; and a final-semester Capstone Experience "which promotes the synthesis and integration of ideas acquired in their programs of study." The Keystone Promise guarantees that students will receive a job offer or acceptance to a transfer or graduate program. If not, they may return to Keystone for additional education at no cost. It further promises that students will be taught by faculty who know them not only by their names; they know them by their dreams. (2000-2001 Keystone College Catalog).

Student Life and Activities

Given its rural setting, Keystone has always provided a rich array of student activities. In 1995-96, students could choose from 18 clubs/organizations (including chorus, theatre, science, and the campus radio station WKEY), three campus publications (student newspaper, yearbook, and literary magazine), five student government organizations, six varsity sports (Keystone is a member of the National Junior College Athletic Association) , and numerous intra-mural sports (number and activity dependent on student demand). The college did not sponsor any social fraternities or sororities, although three academic societies were available.

Resident students were housed in seven residence halls, although one of them, Ward Hall, had been closed down. As noted previously, in 1995 the halls were operating at about 65% capacity, and most were in need of repair, ranging from aesthetic (paint) to structural (new windows and wiring). Few if any Keystone students resided in "off-campus" rental housing.

Financial Situation

In June of 1995, Keystone was $762,425 in debt in operations, and $1.2 million in debt overall, on a $10 million budget. Recent annual fundraising campaigns had netted $491,150. The college did have $10 million in the bank, but it was in restricted funds and thus unavailable for general operating expenses.

Full-time tuition for 1995-96 was $8200 per academic year (two semesters). Additional required fees were $1081 per year for resident students and $951 per year for commuters (commuter students were not required to pay a health fee). Room and board was an additional $5240 per year. Thus, yearly tuition and fees for a full-time resident student totaled $14,528.

Of the $9,665,535 in total revenue for the fiscal year 1995-96 (ending May 31, 1996), student tuition and fees (net) accounted for $4,604,724 or 47.6% (during that same year Keystone's instructional budget alone was $3,478,034). During FY 1994-95 tuition had accounted for 64.3% of net revenue; in 1993-94 it had had been 61.6%. In 1995-96, private gifts and grants totaled $557,160 (5.8% of revenue), and income from investments added another $284,130 (2.9%). (Keystone College statements of current account, 1993-94, 1994-95, and 1995-96). [Appendix 5: 1995-96 financial statements]

The Decline of Keystone College
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The "boom" years of the 1970s were followed by a decade of relative calm. A few new buildings were erected, most notably the Gambal Athletic Center and the Computer Center, but for the most part the campus remained unchanged. Enrollments were solid, and the college functioned successfully in its niche.

In retrospect, the first inkling of Keystone's decline could be seen in a rapid turnover in leadership starting in the mid-1980s. Having had only three presidents in the 41 years spanning 1934-1975, during the next 20 years, Keystone had five presidents, including one interim (1994-1995) and two who remained for only two years each. The longest tenure during that time was seven years, held by President Robert Mooney, Jr. (1987-1994). Ironically, it was during the this time period that two factors converged to have a direct impact on the school's prosperity. First, due to the expansive growth of community colleges in the 1970s, and the introduction of remedial curricula in public baccalaureate colleges at roughly the same time, the market niche for traditional private junior colleges quickly evaporated. Keystone's educational hallmark - solid liberal arts preparation for students planning to transfer to four-year colleges - was now being offered by other colleges at a fraction of Keystone's private-college price. Keystone's pool of potential students evaporated. And, according to Chairman Mangan (who joined the Board in fall 1994), "… some of the board, and more importantly some of the administration, didn't see it coming that quickly, and when that happens it's like a business going downhill real quick - suddenly you wake up and you're near insolvency…"

The second factor having an impact on Keystone's viability involved communication and relations between Keystone's President, Board of Trustees, and faculty. According to Keystone administrators, lines of communication between academic and administrative leadership had "broken down" with the president becoming "increasingly isolated and removed" from the campus. This disconnect led to "strained relationships" between these bodies, and the Board of Trustees had become "isolated" from the daily activities of the college.

Lack of communication between departments on campus had an impact on recruitment and enrollment efforts, which were already in jeopardy due to the shrinking junior college market and Keystone's lack of an aggressive marketing strategy. Faculty, which had traditionally been involved in the recruitment and admissions process, found themselves on the sidelines. As enrollment dropped, tuition revenues fell, and "it got to be a little bit of a panic situation," said one administrator. Faculty morale began to fall. In a desperate attempt to fill classrooms, the school started admitting "students who don't want to be here, shouldn't be here" which further damaged morale.

Decreased enrollment also had a direct impact on campus facilities. Keystone traditionally had operated under an implicit policy of "deferred maintenance," opting for comprehensive renovations over incremental improvements. With the decline in tuition revenue, all but the most pressing needs were shelved indefinitely. Classroom and residence hall conditions deteriorated; instructors lacked chalk and podiums, and in the words of one administrator, students "were just being disrespectful" to the buildings. Boilers were broken and grass was growing in the crumbling parking lots and tennis courts. Some unused buildings were simply closed which added to Keystone's woes. Not only did it become more difficult to attract students to the dying campus, the physical environment did little to retain those who did come.

The story of Keystone's decline is illustrated by enrollment figures for the years 1990-1994. In 1990, Keystone enrolled a total of 763 full-time students, 464 of whom resided on campus. Over the following four years, those numbers shrank to 582 (349 resident), 575 (346), 570 (360), and 473 (242). During the same period, the number of non-residential full-time students decreased much less, from 299 in 1990 to 231 in 1994, perhaps underscoring the impact of Keystone's depreciating campus. Part-time enrollment, including students in the Weekender Program, decreased slightly, from 481 in 1990 to 479 in 1993, but then fell sharply to 376 in 1994.

In May 1994, the Dean of the College resigned, and in September 1994 the president resigned as well. Charles Kennedy, a retired Operations Manager from the local Procter & Gamble Paper Products Company, and a member of the Board of Trustees, volunteered to serve as interim president. Dr. Lansdale Shaffmaster, Professor of Early Childhood Education, stepped in as interim Dean of the College. Thus, at the start of the 1994-95 academic year, Keystone found itself struggling with low enrollments, deteriorating physical facilities, sinking faculty morale, two interim administrators, and a balance sheet steeped in red. At that point, the Board of Trustees felt it had two options: identify the problems and try to correct them, or declare insolvency. Unwilling to give up on a school which had such a long history of service and dedication to the community, the board chose the former. And they knew that the key to Keystone's survival lay in finding the right leader.

The Search for a New President
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The search for a new president commenced in the fall of 1994. The chairman of the search committee sent questionnaires to everyone on campus, asking what people wanted and needed in a president. The faculty, which current Vice President of Academic Affairs Charlotte Ravaioli described as "really very scared for the whole year" took the questionnaires seriously. The search committee took the suggestions seriously, and the Board of Trustees took the search seriously. Mangan recalled that the first priority was to

The search committee narrowed the list of potential candidates to four, all of whom were invited to Keystone for interviews. One of the four candidates was Dr. Edward G. Boehm, Jr., at that time senior Vice-President for Institutional Advancement at Marshall University, a private institution in West Virginia. Boehm had completed his B.S.Ed. at Frostburg State University, and M.Ed. and Ed.D. degrees at American University. Prior to coming to Marshall, he had served in administrative positions at American University and Texas Christian University. An energetic and enthusiastic man, Boehm aspired to a college presidency and enjoyed a challenge. The search committee was excited by what they saw in Boehm. Ravaioli, who participated in the interviews, recalled, "… I was just so excited because as far as I was concerned, he said all the right things. He believed in faculty representation on the Board of Trustees. He supported evaluation of the President. He called us 'colleagues'." "I think the thing that promoted Dr. Boehm the most," said Mangan,

Prior to his first interview, Boehm decide to take a closer look at Keystone in order to get a sense of the atmosphere at the college. He recalled:

As the search committee had been impressed with Boehm's energy, enthusiasm and knowledge, Boehm was equally impressed with the level of dedication and commitment he saw among members the members of the Search Committee. The Committee, led by former Board Chair Leitha Reinheimer, consisted of trustees, faculty, alumni, staff, and students. They were the most dedicated, sincere, and hopeful people he had ever met. Boehm also realized that in the eyes of the faculty and the Board of Trustees, Keystone still had a vital role to play in the community. Realizing that the survival of Keystone hinged on this decision, and with the strong belief that they had found the right man, in the summer of 1995 the Board of Trustees offered the job to Boehm and he accepted. The "Boehm Era" began in October, 1995.

As President Boehm settled into his new surroundings, he couldn't help but wonder what the future would hold, and what course of action he should pursue.