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Considering Economies of Scale In Louisiana's Higher Education Budgets

Economies of scale can be applicable to higher education as it is to the business world. Improving economies of scale is result of finding value through increased production. In the higher education world economies of scale could mean a number of different things depending if you are looking at a single higher education institution or a statewide system. The need to take a better look at economies of scale are becoming apparent in places like Louisiana that have a projected $300 million shortfall this year. A few ideas have been thrown around amongst legislators and each will debated soon as they scramble to make the numbers work. The debate cannot be complete without a discussion of economies of scale that discover new efficiencies while pushing for higher levels of value. A laundry list of rough ideas can spark thought on which ideas may or may not be beneficial as states struggle with budgeting criteria. Consolidate Degrees: Consolidate less popular degrees into larger degrees t

Is Higher Education on a Crash Course with State Budgets?

Credit-rating firm Moody’s Investor Service continued to keep the negative outlook for higher education into the next year ( 1 ). They cite slow job growth, an uncertain labor market, and slow revenue growth.   Such schools are fighting over revenue and have already cut greatly over the past few years leaving them little room to do more.   Personal income is not rising making it difficult with high student loan debt and interest rates to send more people to college.   According to Moody’s research spending is also expected to decline. Some universities like Minnesota State University Moorland and University of District Columbia are pondering cutting core academic programs based upon needed budget cuts ( 2 ).   The trend is part of a need to reduce expenses in expense laden campuses. Decisions include the cutting of academic programs that once made up the core of university learning.   Some are concerned about what this trend means in the long run. Indiana state universities