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'A growing percentage of our colleges and universities are in real financial trouble' | The Hechinger Report

'A growing percentage of our colleges and universities are in real financial trouble' | The Hechinger Report | E-Learning-Inclusivo (Mashup) | Scoop.it
From hechingerreport.org - September 2, 2014 10:58 AM

"

Facing skeptical customers, declining enrollment, an antiquated financial model that is hemorrhaging money, and new kinds of low-cost competition, some U.S. universities and colleges may be going the way of the music and journalism industries.


Their predicament has become so bad that financial analysts, regulators and bond-rating agencies are beginning to warn that many colleges and universities could close.


'A growing percentage of our colleges and universities are in real financial trouble,' the financial consulting firm Bain & Company concluded in a report—one-third of them, to be exact, according to Bain, which found that these institutions’ operating costs are rising faster than revenues and investment returns can cover them."


Via Society for College and University Planning (SCUP)
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Society for College and University Planning (SCUP)'s curator insight, September 2, 2014 9:38 AM

And Robert Zemsky says the faculty are sitting on the sideline: 

“We’re on the sideline. And that’s terrible that the faculty, writ large, are on the sideline.”
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A Century of Campus Planning: Past, Present, and Future —complimentary download from 'Planning for Higher Education'

A Century of Campus Planning: Past, Present, and Future —complimentary download from 'Planning for Higher Education' | E-Learning-Inclusivo (Mashup) | Scoop.it
From www.scup.org - August 18, 2014 11:04 AM
  1. This article was previously published in Facilities Manager magazine as part of APPA's 100th anniversary celebration. 
  2. It is shared here [pdf], for those who are not SCUP members, only through Sunday, August 24.
  3. Share your memories of the last 50 years of higher education planning on SCUP's 50th anniversary page.


"For most of its history, higher education in America was an experience that only the elite could enjoy. As a result, throughout the 19th century, higher education institutions became increasingly steeped in tradition and resistant to change. Things stayed about the same until World War II, which forced colleges and universities to face some huge challenges. For example, in 1944 the G.I. Bill enabled more than two million returning veterans to enter the higher education system.


'Higher education became more accessible and was no longer entirely the domain of the elite or the upper echelon,' says Persis C. Rickes, president and principal with Rickes Associates, a higher education planning firm in Attleboro, Massachusetts. 'Instead, it became the golden ticket to achieving the American Dream.' The nation’s higher education system was greatly challenged by this surge of students—in response, many institutions expanded facilities quickly, cheaply, and with minimal planning. ...


Going forward, most experts agree the pace of change will accelerate dramatically. Financial challenges, both capital and operational, will be the key drivers of facility planning in the future.


'Alternatives to the traditional higher education pipeline, such as badges and "unbundling," will lead to a reconceptualization of what it means to obtain a degree,' notes Rickes. 'While the residential collegiate experience will remain viable for some institutions, many others will be challenged to explore ways to reposition themselves in order to remain competitive, doing more with less.'”


Via Society for College and University Planning (SCUP)
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Society for College and University Planning (SCUP)'s curator insight, August 18, 2014 9:29 AM
MILESTONES IN CAMPUS AND FACILITIES PLANNING

1860s: Morrill Act of 1862 (Land-Grant School Act)

1890s: Columbian Exposition (showed America how beautiful and functional a planned campus can be)

1940s: World War II and the G.I. Bill

1940s–1950s: Colorado and California create space guidelines in an attempt to control and optimize campus space

1950s: Creation of the Western Interstate Commission of Higher Education (WICHE)

1950s: Brown vs. Board of Education eliminated segregated educational institutions

1960s: Richard P. Dober published his landmark book, Campus Planning

1960s: Higher Education Act of 1964 (created more access to higher education)

1970s–present: Widespread use of cars on campus (traffic and parking have enormous impacts on the campus environment)

1990s–present: Widespread adoption of the Internet and distance learning
Gregory A. Smith's curator insight, August 20, 2014 11:34 AM

This article provides a bird's eye view of factors have impacted college and university planning over the past century.
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The Unanswered Question: How Will We Pay for Aggressive Higher Ed Attainment Goals?

The Unanswered Question: How Will We Pay for Aggressive Higher Ed Attainment Goals? | E-Learning-Inclusivo (Mashup) | Scoop.it
From www.changemag.org - August 18, 2014 10:42 AM

"Certainly there are limitations to the model described, some of which I have identified and others which I'm sure readers will point out. It is currently being modified to eliminate some of its shortcomings.


But as flawed as it may be, it serves to point out several key points. First, different approaches to attaining goals have different cost consequences.


Second, in almost all scenarios, resources required by community colleges outstrip those that will be required by four-year institutions. This is a direct contradiction to priorities typically assigned in the appropriation process. Institutional costs can be reduced under an assumption of marginal costs being less than average costs, but this doesn't change the need to assign priority to funding for those institutions that will have to do the heavy lifting if attainment goals are to be met.


Third, the largest component of costs in both scenarios is student financial aid. The real-world examples reinforce the point made earlier in this paper that concentrated attention to the design of financial-aid programs is perhaps the key element in the development of cost-effective means of reaching aggressive attainment goals.


Finally, it drives home the point that reaching such goals will take substantial additional resources. Ways can be found to mitigate these costs, but success will be impossible without additional state investments."


Via Society for College and University Planning (SCUP)
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Society for College and University Planning (SCUP)'s curator insight, August 18, 2014 10:15 AM

"Dennis Jones, [a frequent SCUP presenter,] is president of NCHEMS, a nonprofit research-and-development center founded to improve strategic decision making in institutions and agencies of higher education. Jones is widely recognized for his work in such areas as developing public agendas to guide higher-education policymaking; financing, budgeting, and resource allocation; linking higher education with states' workforce and economic-development needs; and developing information to inform policymaking.
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Getting a Handle on Performance-Based Funding

From aascu.org - August 5, 2014 12:56 PM

Via Society for College and University Planning (SCUP)
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Society for College and University Planning (SCUP)'s curator insight, August 5, 2014 12:41 PM

Frequent SCUP speaker, Dennis P. Jones, is quoted as saying that “States are getting more sophisticated about what they’re doing and are crafting models that really reinforce institutional mission differentiation, rather than doing the same thing for everybody.” Jones is president of the National Center for Higher Education Management Systems, whose October 2013 report, “Outcomes-Based Funding: The Wave of Implementation,” examines such policies. “They’re also putting a bigger share of the allocation into outcomes-based funding.”

This author concisely organizes this brief and informative resource, from AASCU's Public Policy magazine, under the primary heading of "A More Sophisticated Model," with these bullets.


  1. An Active Role for Stakeholders
  2. Differentiate Metrics and Rewards
  3. Make the Money Meaningful
  4. Make the Penalties Reasonable
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