A-State bonds receive A1 rating from Moody’s

The Arkansas State University System President Brendan Kelly told the board of trustees on Friday (Dec. 13) that since his hire he has visited every campus within the system. Kelly said he has visited with thousands of constituents during that time.

“Our job is to connect the dots for students between their current state and the multiplicity of careers that they will have. I learned that elevation and innovation is us committing to taking the ASU system to the next level. And the next level doesn’t look like this one. In order for us to get different results and different outcomes we have to do differently, and I think that’s precisely where we are headed,” said Kelly.

Higher education will face major changes in the coming years and the system needs to develop plans to tackle these key issues.

“Trying to produce great results for other people is the business we’re in. But it is a business that is changing. We are challenged in higher education, and we should be challenged to change. We need to. That’s part of where we have to go. We need to be more aligned with industry, not just aligned. We need to be integrated into industry so that we can connect the dots between students who are seeking opportunity and people and organizations who need talent. We must ensure the richest return on investment for students all of the time,” he said.

In official business, Kelly announced that Landen Crancer, assistant vice president for finance and operations in the ASU System Office, will also serve as chief of staff to the president. Crancer joined the system in 2022 and is an A-State alumnus.

System Executive Vice President Julie Bates reported on the financial condition of the system. She noted that Moody’s Ratings had reaffirmed an A1 rating for Arkansas State University bonds and upgraded Henderson State University to Baa1 with a stable outlook. Henderson’s financial stability has improved dramatically since 2019 with some $20 million in expense reductions that have resulted in progress from just 7 days’ cash on hand at the end of Fiscal Year 2019 to 98 days at the end of FY 2024, said Bates.

Trustees approved ASU Three Rivers to proceed with renovation and expansion of a campus facility that will house a new 7,900-square-foot workforce center in Malvern. The $2.97 million project will support electrical and millwright training programs with classrooms and robotics equipment.

The board elected Steve Eddington of Benton to serve as chair for 2025. Bishop Robert Rudolph of Bryant will be vice chair, and Paul Rowton of Harrisburg will serve as secretary.