It isn't just that. If the economy slows, state tax revenue slows and appropriations will be reduced. |
| Look at the staggering growth in non-instructional staff over the last 30 years when the enrollments at most privates has been intentionally capped. Incredible that non teaching staff is bloated. Long overdue for better fiscal management. |
This contrasts fairly sharply with the 28% of attending students who did at Middlebury. |
| Are Hamilton, Colby or Borodin have these type of financial issues? I’ve heard murmurs about Bates which given their endowment isn’t surprising. |
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What? The literally article says it's because of FIFTEEN YEARS of deficits. "The college attributed the changes to 15 years of consistent deficits, culminating in the unexpectedly high $14.1 million shortfall this fiscal year, a large portion of which is due to lower enrollment at the Middlebury Institute of International Studies at Monterey. |
Agreed. Too many administrators to pay. |
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This is one of the challenges for small schools. They are much more dependent on tuition and fees. When enrollment was constantly growing without question it wasn’t an issue. But if we’ve hit a peak, this will become much more challenging going forward. |
Most top schools are terribly bloated. They spend everything they bring in, so they are overextended. However, they can right size themselves, but it will be painful. |
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When was the last time colleges really tried to cut costs?
There was never ever any pressure for the top 250 universities at least. |
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I'm an academic at an R1. I don't think that there is a college or university in the country that isn't deeply worried about its finances right now. What makes it very complicated is that the threats to higher ed are coming from a variety of places, meaning that each institution's risk profile is different. There's the long-feared demographic cliff on the horizon, and now the Trump administration has deliberately created utter chaos. It's a time of exceptional uncertainty, more so than any I can remember in decades of being in higher ed.
Here are the main (current!) threats, in no particular order: --Federal grants rescinded because some algorithm decided they were too "woke" or because of incredibly clumsy DOGE cuts. Institutions that do lots of medical and scientific research have been hit especially hard by these cuts. Note that it affects not just the NIH and the NSF, but also things like the USDA, which funds a lot of things at state land-grant schools. Lots of these are in court, but even if institutions win, there's no guarantee that the grants will get reinstated. --The slash of the indirect cost rate for NIH and NEH grants. Perhaps some of this can be recouped if the rules are rewritten to allow more things as direct costs, but no one knows. In the short-term, it's a huge budget hit for research universities. --The threat of visa revocations and border detainment for international students. Students have traditionally come from all over the world to do undergraduate and graduate work at US universities. Understandably, many of them are increasingly hesitant. For institutions that depend on international student tuition money, this is potentially a massive financial hit. Higher ed is a major US export, and not just at fancy R1 schools. --Greatly increased/expanded endowment tax. This affects mostly wealthy universities, but should that happen, it would have a massive effective on operating budgets. Note that some state university systems have huge endowments. --Loss of tax-exempt status. Still hypothetical, but would be a major financial hit. --Loss of accreditation. Also hypothetical, but it would mean the loss of eligibility for federal student loan programs--a very big deal. --General Trump administration animosity of the kind that Harvard is dealing with. Any school that gets into the crosshairs of this administration is in for it. The legal fees alone would break many schools. --The threat of recession, which affects endowment income and state budget allocations. --Last, but not least, declining enrollments because of demographic changes. This has been long expected and will likely mean the closure of any number of schools. All the rest of the uncertainty may just hasten that along. I think it's hard to predict what this will mean for undergrads over the next few years. The cuts to NIH and NEH grants are likely to reduce undergraduate research opportunities in STEM fields. US universities are also in danger of losing international faculty, who may well prefer to work in a country that isn't actively trying to undermine their work. Financial aid will probably take a hit, since that standardly comes out of endowment interest income. All in all, it's not a great time for higher ed. Mind you, none of this is really aimed at *reforming* institutions. If it were, it would have been done much differently. Alas, the Trump administration's desire to wreak havoc on the nation's research universities will mean that the entire country suffers. |
UVA doesn’t have close the sports $ of the SEC, nor the donors. These schools are rich and notably well-run. |
The projects in Virginia that were paused were paused by the state of Virginia, not the schools. None of them were related to athletics. Athletics projects do not receive general fund funding. |