ERIC Number: ED468145
Record Type: RIE
Publication Date: 2002
Weathering the Double Whammy: How Governing Boards Can Negogiate a Volatile Economy and Shifting Enrollments.
Wellman, Jane V.
Association of Governing Boards of Universities and Colleges
Public and independent colleges and universities are facing a fiscal and demographic crisis that has significant long-term implications. State revenue shortfalls are resulting in cuts for higher education as enrollments of traditional and nontraditional students are rising. This creates a double whammy situation: the challenge of doing more for many more with much less. All this must be accomplished while maintaining the integrity and value of the U.S. higher education system. The 1,600 private colleges and universities in the United States are also being hit with another twist. Some high-profile institutions have large endowments, but most independent schools have modest resources and rely heavily on tuition income to make ends meet. When a stumbling economy causes parents and prospective students to choose a public college over a private one, the already slim operating margin of the private school can narrow precipitously. Thus far, responses include: (1) raising tuition; (2) delaying capital outlays; (3) redirecting special revenues to general fund accounts; (4) postponing scheduled tax cuts; (5) increasing employee contributions to their health plans; (6) eliminating programs; (7) sweetening incentives for early retirements; and (8) laying off employees. Public and private institutions, small and large, wealthy and not-so-wealthy have all instituted one or more of these strategies. (Contains 23 references.) (SLD)
Descriptors: Budgeting, Economic Factors, Enrollment, Governing Boards, Higher Education, Private Colleges, Public Colleges, Retrenchment
Association of Governing Boards of Universities and Colleges. 1133 20th Street NW Suite 300, Washington, DC 20036. Tel: 800-356-6317; Tel: 202-296-8400; Fax: 202-223-7053; Web site: http://www.agb.org
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Lumina Foundation for Education, Indianapolis, IN.
Authoring Institution: Association of Governing Boards of Universities and Colleges, Washington, DC.
Note: Working Paper for the Annual Association of Governing Boards of Universities and Colleges National Conference on Trusteeships (Boston, MA, April 20-23, 2002).