finances – Innoeduvation

Got a Plan? What does the college do when no one shows up in September?

I have not seen anything addressing the following issue, so here I go.

This is college/university acceptance season. The plan over the next month or two at most American colleges and universities was to build the class of 2024. Obviously, a spanner has been dropped into the works. What are the implications?

Most of us are up to our eyeballs trying to adapt to things on the time-scale of hours or days at the moment. When you see things tagged with longer time horizons there are way too many that go no further than “the next two weeks” or “the rest of the month.” The more sober ones are things like “classes online until April this” or, better, “for the rest of the semester and commencement exercises are to be rescheduled.”

But there might be a bigger wave out there beyond the one we can see: the current extraordinary situation might well become the new ordinary for a prolonged period, one that could easily stretch into the fall. If it does, colleges and universities might find themselves with no entering class of 2024. And we might expect higher than normal attrition if what we have to offer in the fall is all online. And maybe some pushback on tuition levels if that’s the product on offer. The astute student will recognize that it’s not just classes that she pays for – the very opportunity to be learning with other people is a big piece of our value proposition.

A very small college with, say, 1000 students and effective tuition revenue per student of about $15,000 would immediately be looking at a missing $3.5 million in tuition revenue from lack of a new class. Add fees and the expected shortfall is easily north of $5m before we even look at attrition among returning students. For an institution with even a moderate endowment that sort of hit means making payroll and bond payments will be difficult. For a school of 2 or 3 thousand students with a more favorable total cost per student the hit could be an even higher percentage of total revenue.*

What’s the Plan?

Maybe schools will be able to lay off all of the Non-academic staff associated with on-campus learning, but caution: that’s an operation that could be hard to rebuild from scratch in the post-Corona era. And there might not be much in the way of net-savings because they will simultaneously be staffing up to support the online alternative.

So maybe they could just layoff faculty, hire more adjuncts. Many of these institutions have already played the adjunct card so there’s not a lot of wiggle room there. And those that take this approach will figure out pretty fast that full time faculty were their product development team not just their pedagogical assembly line workers.

For a decade or two the mindset of administrators has been that online education might be either or both the cost-cutting move and cash-cow activity that they needed. I think they are about to discover that it is neither of these. The venal administrative mindset that has seen instructional faculty as a cost center may have come home to roost.

Why? Because the thing that a fully online college or university will need a lot less of is traditional administrators. Over the past several days faculty around the world have turned on a dime, struggled, and innovated. The results are almost certainly uneven, and it was not accomplished without the able assistance of centers for teaching technology and the like. But, it turns out, the work that instructional faculty do is transformable and the personnel involved are flexible. I hypothesize that the same cannot be said for the layers and layers of administration that have accumulated in most institutions.

The responsible college or university president has to go against her instincts. Those instincts are to sit with other administrators and figure out how to do the job with fewer faculty. The presidents who keep their institutions from ratifying the infamous 2013 prediction by Horn and Christensen that 25% of American colleges will fail in the next decade are the ones who will, instead, sit down with their faculty and figure out how to do the job with fewer administrators.

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Will Free Community College Put HBCUs Out of Business?

My colleague Sara Goldrick-Rab wrote a post saying “Short answer: No.” But notes it might be because “HBCUs (both public and private) are allocated $10Billion in support under America’s College Promise.” I confess to ignorance about the details of ACP, but it seems like something we should be paying attention to at tuition-driven SLACs.

See also AACC on America’s College Promise Act and this brief from democrats on the Committee on Education and the Workforce. Are the potential grants to Hispanic Serving Institutions driving some colleges to try to redefine their mission? Here are a few notes from the above document:

In order to be eligible, MSIs must have a student body that is at least 35 percent low-income, including Pell-eligible students. Additionally eligible MSIs must commit to maintain or adopt evidence-based institutional reforms designed to improve student outcomes, and to set performance goals for improving those outcomes. Eligible MSIs that enter into articulation agreements with community colleges can also receive grant funds for eligible students who transfer from those community colleges to complete their baccalaureate degrees.

This is intriguing, but one would expect a bit of careful analysis about the costs, benefits, and implications of chasing this not-yet-existing funding.

Wisconsin Center for Education Research

Can Free Tuition to Community Colleges Put Historically Black Colleges and Universities Out of Business?

T. Ramon Stuart, Ph.D.

Associate Provost and Associate Vice President for Academic Affairs,West Virginia State University

December 4, 2015 10 am – 11:00 am

During the 2015 State of the Union Address, President Barack H. Obama announced his vision to provide American citizens free access to higher education through community colleges. While President Obama failed to outline the details of his plan, there is no doubt that his plan could drastically increase the number of Americans with a college degree; however one very important detail that President Obama omitted from his statement was the cost of this initiative and the impact that funding it would have on other institutions of higher education – especially Historically Black Colleges and University. This study uses current IPEDS data to analyze the tuition cost of the 1890 land-grant institutions while also exploring the average tuition cost of the community colleges in the respective states to see if there is a substantial difference in tuition cost.

Stop Me If You’ve Heard This One

From Inside Higher Ed

What’s Expendable?

July 21, 2014
By Charlie Tyson

In March 2013, when the Faculty Senate at Mary Baldwin College met with the college’s president, tensions were running high. Professors at the private women’s college in Staunton, Va. had not received raises in six years. And a mandate from the Board of Trustees instructing faculty to examine low-enrollment majors had ignited rumors. Professors worried the college would cut certain liberal arts programs: French, Spanish, chemistry and other majors that attracted few students. Surrounded by her colleagues, Ivy Arbulú, an associate professor of Spanish, spoke.

“There are no ‘expendable’ majors, and most certainly not if what is expendable and what is not is decided by the popularity of majors amongst our students,” she said. “All majors are part of the education we offer.”

The Spanish professor, known at Mary Baldwin for her rigorous standards and dedication to students, died of leukemia six weeks later. She left behind a Spanish department with just one faculty member. In September, an interdisciplinary major in Latin American Literatures and Cultures will replace the traditional Spanish major Arbulú championed. The French major, too, has been cut, and a number of upper-level course offerings in liberal arts are being phased out.

Interviews with top college officials and a number of professors (most of whom requested anonymity for fear of reprisal), as well as a review of more than a hundred pages of internal documents obtained by Inside Higher Ed, reveal an institution in transition — and in conflict. At Mary Baldwin, the administration’s focus on enrollment growth through new programs has left some faculty members convinced that the liberal arts college no longer has liberal arts at its center.

College officials maintain the institution has not strayed from its liberal arts mission. What’s occurring at Mary Baldwin, they say, is a philosophical dispute. A handful of professors are clinging to a conception of the liberal arts grounded in discrete disciplines — an idea college officials say is outdated.

“We’re at a time in education when we’re moving beyond the disciplines that were created 100 years ago,” said Sarah Flanagan, chair of the academic affairs committee on Mary Baldwin’s Board of Trustees and vice president for government relations and policy at the National Association of Independent Colleges and Universities.

In recent years, many higher education experts have deemed many liberal arts colleges and women’s colleges — at least those without billion-dollar endowments — financially challenged, if not endangered.

Read the rest at Inside Higher Ed

Who’s a Cost Center? : The Higher Ed Work Force Report

The Delta Cost Project, a research group under the American Institutes for Research (AIR) that looks at higher education costs, has released a report titled “Labor Intensive or Labor Expensive? Changing Staffing and Compensation Patterns in Higher Education.”

Unfortunately some of the analysis in the report is easy to misinterpret because it moves back and forth between headcount, FTE, and dollars. Sometimes a trend toward more part time employees looks like growth in workforce, sometimes not. Thus, their figure 1 (here truncated) might indicate growth in workforce at private master’s and bachelor’s institutions or it might reflect a shift from full time to part time employees.

Still, I think the report deserves a close reading and that the appropriate folks at my own institution should inquire about where we stand on each of the metrics described and then initiate some critical conversations on whether we are pleased or not by the answers.

But in any case, this quote : “You can’t blame faculty salaries for the rise in tuition. Faculty salaries were ‘essentially flat’ from 2000 to 2012, the report says” from the CoHE article below will probably engender some interesting conversations.