While Plymouth State University has been impacted by the economy, it remains both financially and culturally strong, said its president, Sara Jayne Steen.

Steen addressed approximately 300 people Wednesday as she delivered her "State of the University Address" in the Silver Center for the Arts' Hanaway Theatre.

"The global economic turmoil means that this is not a normal year, not business as usual for any institution of higher education, though specific issues may vary," Steen said. "So today I want to talk with you about how we are managing the strategies that will allow us to move through the recession and emerge an even stronger university."

Areas affected by the recession include enrollment and endowments. The impact, however, has not been large in either case, Steen said.

Steen said graduate applications are up. However, undergraduate applications are down slightly. She said one reason undergraduate applications are down from their level at this time last year is that changes in federal financial aid guidelines have caused educational institutions to delay getting out their financial aid offers to students.

After the address, Steen said undergraduate enrollment could still rebound due to the delayed financial aid offers and other late applications that may result from families delaying their choice to see when the economy is going to pick up again.

As for endowment funds, Steen said the losses have been small and do not impact the operating budget. She was confident those losses will be made up within the next couple of years.

After the address she said she did not have handy a dollar amount of how much endowments are down by.

Steen said the money the university receives from the state constitutes approximately 15 percent of the annual budget. She added that the state money is used to keep tuition lower for New Hampshire residents.

Because of the state's economic shortfall, Steen said the university returned 7 percent of its state funding for 2009, though it did not impact tuition because the money was made up for by leaving some positions vacant, delaying some job reclassifications and postponing some scheduled renovations.

She said future measures to keep costs down may include not increasing salaries at the same annual percentage or even delaying some increases.

"Please know that I do not foresee layoffs," Steen said. "No one can promise that layoffs will never occur, but they are not a choice that would be anything but a last resort."

Steen said Gov. John Lynch's proposed budget for the next biennium recommends that the University System of New Hampshire, of which Plymouth State is a part, should receive 97 percent of its current allocation in fiscal year 2010 and 100 percent in 2011.

She added that the governor's office recently announced that it will use $3 million of New Hampshire's American Recovery and Reinvestment Act funds to lower the University System's operating costs.

On the plus side, Steen said the university is looking for ways to increase revenue and it has combined its fundraising, alumni and advancement offices under a recently appointed director, Sylvia Bryant, who will take the helm of the new department in June.

In an effort to keep the cost of attendance for students down, Steen said the university has invested nearly $700,000 in additional financial aid and it has moved to the federal direct lending program, which offers advantages to students and their families in terms of cost, repayment and security.

Also, the university plans to move forward with the first phase of a five-part plan for building The Center for Active Living, Learning and Wellness (ALLWell), which is largely the construction of an ice arena.

After the address, university spokesman Chris Williams said the project has been well planned and the phases will be funded and completed in a manageable way so that it does not impact the university's operating budget. He said a rough estimate for the ice arena project is $15 million, a considerable amount of which has already been raised.

During the address, Steen highlighted many of the university's accomplishments and mentioned members of the faculty, staff and student body who have been recognized on a regional, state or national level, including graduate student Nick Stevenson, who won a national research competition at a water quality conference in St. Louis; the PSU Panther football team that won the New England Football Conference Championship and Coach Paul Castonia, who was selected New England Coach of the Year for Divisions II/III; English professor Liz AHL who won the 2008 Slapering Hol Prize for Poetry; and Crystal Finefrock, associate director of financial aid, who will receive the Champion of Educational Opportunity award in recognition of her work with first generation and low-income students.

In her closing remarks, Steen said the university will continue to provide intellectual and economic enrichment to students and the wider community.

"If we make decisions wisely and strategically, both about what we cannot fund and what we should fund, we will emerge from this a stronger and even more well-focused regional comprehensive university, serving our students and our region with distinction," Steen said in her closing remarks.

Bethany Meyers from Tewksbury, Mass., a senior undergraduate student, said the address was informative.

"It's good to hear how the school is going to change and get through the tough economic times," Meyers said.

She added that she is interested to hear about the planned ice rink and thinks it will be beneficial for the university and surrounding communities.

"I was really impressed with how comprehensive her plan is for the university to run at the same standard it has been," Samantha Cate, another senior said.

Barbara Noyes, a business services assistant who has worked at the university for the past 25 years, also praised Steen's address.

"I thought the address was wonderful, we have a dynamic president," Noyes said, adding that while it is a difficult time to lead, Steen is doing it with aplomb. "She knows what needs to be done and is giving the right emphasis to the right things."