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Showing posts with the label college costs

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

Increases in Higher Education as a Result of Non-Essential Educational Services

Higher Education is changing and may be indicative of some challenges that will need new solutions and better ways of managing the educational system. A report by the Joint Legislative and Audit and Review Commission (JLARC) to the general assembly of Virginia indicates a number of important education trends such as cost, state investment, secondary higher education services, student loan debt, and graduation rates of both Virginia and the nation. Even though the report focused on Virginia it did highlight some national trends and changes.  A Virginian report indicates that the majority of newer higher education costs are a result of auxiliary services. At 15 Virginia based higher education institutes,   spending increased from $2.6 to nearly $6 billion dollars in the past two decades. Staff salaries, benefits and maintenance were not the majority of these increased costs. Higher levels of spending were found in academic services, research, academic support, student support, h

College CFOs Increasingly Concerned about Sustainable Operations

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The 2013 Inside Higher ED Survey of College and University Business Officers surveyed 457 chief financial officers at universities and found less certainty about the sustainable future of higher education. The numbers aren’t dismal but do move into the realm of raising eyebrows and thinking of solutions. In particular, a lower percentage of CFO’s believe their organizations are financially sustainable and a higher percent are taking on debt to run operations.  -27% strongly agree that they are confident about the sustainability of their institutions financial model. -21% believe for-profit education (lower page of report) is sustainable while 51% believe elite schools are sustainable. -49% of polled officers have experienced increases in healthcare premiums. -92% say that retaining current students is a large part of their strategy. -45% believe that technology is or will help them reduce operating costs. -59% stated they were well informed about their jobs before t