In a media interview following the announcement that St. Çï¿ûÊÓƵ and Mount Mercy University were exploring a strategic combination to bring the two storied universities together, the reporter asked to talk off the record.
Amy Novak, EdD, president of St. Çï¿ûÊÓƵ, and Todd Olson, PhD, president of Mount Mercy University, agreed and the interview continued. The reporter began asking the tough questions, trying to get to the crux of why this proposal for a new model of Catholic higher education could work when other partnerships across the country have failed. The presidents listened, then answered with honesty and enthusiasm. The reporter smiled – and the interview went on.
This moment was important because much of the reporting these days is about what happens when colleges and universities aren't able to navigate the swelling waves of challenges slamming the shores of higher education. There is frequent news of cuts to faculty, staff, and programs. Failed partnership. And closures. Lots of them.
The worst of the enrollment cliff is inching closer by the day, and the steady trend of declining first-year student numbers, coupled with rising operational costs, are forcing even the most revered and pillared institutions to make tough decisions, or even close for good.
Too many Davids are losing to Goliaths. So, Novak and Olson decided it was time to lean into their faith and work together to give the Davids a fighting chance.
"St. Ambrose is in a very strong financial position. Our work with Mount Mercy will enable St. Ambrose to further add graduate programs, strengthen enrollment, and attain brand visibility in a growing economic corridor of Iowa. With prayer and a deep faith at the center of this work, we believe this will succeed," Novak said.
The birth of a vision
It began over breakfast. Novak and Olson met inside a Perkins restaurant in January 2023 to have a conversation of possibilities in the hopes of working together to proactively address the issues plaguing higher education and other institutions across the country.
Some troubling realities were creeping closer and closer to their campuses in Davenport and Cedar Rapids, and they knew it would take groundbreaking thinking to come up with a viable long-term solution. They asked the question, ‘If other industries like health care could reinvent themselves, then why couldn’t the same be true of Catholic higher education?’
“We knew right away in those first meetings that we could be stronger if we worked together. We needed to embrace an innovative and proactive strategic approach to what we're facing,” Novak said.
That initial meeting was a kickoff to months of productive and innovative conversations which produced two exciting and distinct opportunities announced publicly in May:
First, the two Catholic universities were developing a plan to allow eligible students at either university to take courses offered by the other beginning in fall 2024.
Second, the universities would work toward a potential strategic combination to bring the two institutions fully together.
The goal? Create a groundbreaking new model of Catholic higher education to lower costs, increase administrative efficiencies and provide students with new opportunities, better access to academic pathways and improved affordability.
“We were navigating what I would consider to be liminal space. That means we don't always know exactly how it’s going to turn out,” Novak said. “But when we center our work in Jesus Christ – and when we believe firmly that this work is rooted in a higher purpose – I'm confident that the end outcome will be something we appreciate, is sustainable and vibrant, and lives into our mission with even more vibrancy.”
Problems that need solving
In the week leading up to their public announcement, two more institutions announced they were closing their doors – one in California and the other in New York. Both were out of money. One of them had operated for 156 years.
The rate of college and university closures had increased to about one per week in 2024. Many institutions’ financial woes were made worse by the global pandemic, shrinking student pools, and a general negativity towards higher education.
“Whether it’s the realities of the demographic cliff or fewer students accessing higher education, we as leaders in this space are called to think outside of the box, maybe not in the ways we've traditionally explored in the past,” Novak said. “We must think differently and engage in new and exciting ways.”
St. Ambrose and Mount Mercy entered conversations from positions of relative financial strength. Both universities are endowed with strong balance sheets. St. Ambrose’s endowment is $247.5 million, the 36th largest endowment of 187 Catholic colleges across the country. Mount Mercy’s is close to $40 million.
Still, operating revenues were on a steady decline due to enrollment gaps, inflationary pressures and the rising costs of doing business. Both schools’ prospective student pools were getting smaller by the year. Plus, an increasing number of high school graduates are choosing to attend larger state schools or community colleges. Or they are foregoing higher education altogether.
“We firmly believe in the value that Catholic higher education brings for students as life-long learners. Both Todd and I have felt over the past couple of years increasing pressure from our constituents, whether those are students or parents or the larger community, to really show the value proposition of small private higher education, and equally importantly, to demonstrate how it is that we're a Catholic institution and living into those values,” Novak said.
The vision becomes reality
Novak and Olson took their plans and faith in their collective future to their respective boards in April 2024, each receiving praise and affirmation for the path forward. Finally, a definitive agreement was signed by both presidents in August 2024 making their shared vision a reality.
“The signing of this historic agreement was a pivotal moment for not only St. Ambrose and Mount Mercy but for Catholic higher education as a whole. If we do this right, we hope to be a model for other institutions looking for a better path forward,” Novak said. “There have been a number of college and university presidents who have reached out and expressed interest in how we started the work and what it means for future possibilities.”
Under the agreement, the campuses of St. Ambrose and Mount Mercy remain separate with two separate athletic programs. St. Ambrose remains the Fighting Bees; Mount Mercy, the Mustangs. There is genuine excitement among students at both campuses about the opening up of 18 graduate pathways, and there’s energy about the possibilities to collaborate in co-curricular activities, campus ministry, and student clubs and organizations.
“My favorite part of this partnership with Mount Mercy is that we’ll still have the small school feel of St. Ambrose but we’ll have so many more opportunities," said Anna May ’25, president of St. Ambrose's Student Government Association.
Another benefit is the potential to shorten a student’s time to degree completion through additional academic pathways. Students are attending eligible courses online, in a hybrid format, or in-person.
“Students at both universities immediately affirmed for me that this is important work, and reminded me that this is student-centered work, and that fundamentally, they're eager to help us create something better and stronger, to continue to strengthen both institutions as we go forward,” Novak said.
A glimpse into the future
Novak and Olson have become intrinsically familiar with the interstates that join their campuses, nestled in two of Iowa’s largest metropolitan areas. They’ve utilized dozens of hours of windshield time over nearly two years contemplating the future and the possibilities this combination will create for students, the universities, the Quad Cities and Cedar Rapids communities, and Catholic higher education.
“At its core, this is about benefits for our students and the longevity of our institutions for decades to come. It’s about a stronger core curriculum, more opportunities for graduate pathways, and new opportunities for adult learners to complete degrees or earn certificates to be more competitive in the labor market,” Novak said.
The two presidents are busy leading a group of integration and planning teams comprised of various faculty and staff members from both universities. The combination agreement is in the first phase of a two-stage approval process.
The first stage is to secure approval through the Higher Learning Commission and other regulatory bodies. Upon approval, St. Ambrose becomes the parent company of Mount Mercy University. However, the two cannot fully merge into a single entity until the second phase of the process, which requires approval from the Department of Education. Upon approval by the Department of Education, Mount Mercy University becomes the Mount Mercy Campus of St. Çï¿ûÊÓƵ.
While the combination agreement is being reviewed, Novak and Olson are busy leading a group of integration and planning teams comprised of various faculty and staff members from both universities. And the provosts and professors are hard at work finalizing the menu of shared courses.
“I think it often takes a really significant and courageous lift on the part of leaders to think collaboratively or innovatively about how we build new models of higher education,” Novak said. “I’ve been particularly grateful for the leadership of Todd Olson. Todd and I have always known this collaboration is certainly out of the box. But we’ve always believed it’s the right pathway forward that will build long-term sustainability for both institutions.”
A little more than 80 miles separate their two campuses, but Novak and Olson are bringing them much closer together. They’re still driving those interstates from west to east, or east to west, carrying the futures of their students with them every mile of the way. Their focus is forward on what’s ahead, only looking back as a reminder of their courageous collaboration and the impact their faith and vision will have for years to come.
“What drives my leadership is a commitment to strengthening the student experience, whether that student is 50 years old or 18. I want to believe that St. Ambrose is a place that is on the forefront of thinking through how we continue to strengthen learning and the myriad of ways in which students might intersect our educational opportunities. I want to do this in a way that honors our tradition, while simultaneously examining the possibilities that may come through innovation.”
For more information and frequently asked questions about the strategic combination, please visit Education Together.