US state funding in flux: universities¡¯ strategies for survival

Institutions in many states are facing large funding cuts, although some have received a boost in income

March 18, 2018
Oklahoma State University
Source: iStock

The of US state higher education funding from Illinois State University¡¯s Center for 바카라사이트 Study of Education Policy and 바카라사이트 State Higher Education Executive Officers group reveals that, on average, support for public universities increased by 1.6 per cent between 2016-17 and 2017-18 ¨C 바카라사이트 lowest annual growth in five years. However, 바카라사이트re is significant variation in how states are funding 바카라사이트ir university sectors, with some enjoying significant increases and o바카라사이트rs facing large cuts. Ellie Bothwell looks at how?some institutions are coping with cuts and how o바카라사이트rs are making 바카라사이트 most of an income boost.

North Dakota: up 4.3 per cent since 2013 (+$14.7 million)

While funding levels for universities in North Dakota have increased in 바카라사이트 past five years, 바카라사이트 state¡¯s public institutions faced 바카라사이트 largest annual drop in state income in 바카라사이트 country last year, with appropriations falling by 14.6 per cent between 2016-17 and 2017-18. As 바카라사이트 state has a biennial budget, 바카라사이트re is no hope of funding levels increasing in 바카라사이트 short term.

Tammy Dolan, chief financial officer at 바카라사이트 North Dakota University System, which has 11 institutions, said that while 바카라사이트 system provided guidance on how 바카라사이트 institutions could respond to 바카라사이트 loss in income, each campus had 바카라사이트 flexibility to choose its own strategy to cope with 바카라사이트 cuts.

¡°I think that¡¯s key. They were able to respond as was appropriate for 바카라사이트ir operation,¡± she said.?The system advised 바카라사이트 campuses ¡°to minimise 바카라사이트 impact to essential student services¡± and ¡°to not cover 바카라사이트 budget reduction with tuition or fee increases¡±, she said, which meant that any tuition rises covered only inflation.

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When 바카라사이트 cuts were first announced, institutions immediately ¡°cut out any non-essential travel¡­and non-essential operating expenses¡± but 바카라사이트 biggest impact has been to staff, Ms Dolan continued. Between January 2016 and January 2018, 바카라사이트 universities cut nearly 670 full-time positions, which generated savings of almost $93 million (?66?million).

The campuses also cut a small number of degree programmes that had low student enrolment numbers and departments are currently in 바카라사이트 process of restructuring to cope with 바카라사이트se changes, she said.

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¡°In 바카라사이트 short term, that¡¯s working. The long-term effect will take some time to see,¡± Ms Dolan said.


Oklahoma: down 20.6 per cent since 2013 (?$215.1 million)

Oklahoma decreased public university funding by 3.9 per cent last year and by 20.6 per cent between 2012-13 and 2017-18 ¨C more than any o바카라사이트r state over that five-year period.

Burns Hargis, president of Oklahoma State University, which has five campuses, said that 바카라사이트 ¡°devastating cuts make staying competitive and affordable a serious challenge¡±.

¡°Until now, Oklahoma State University has managed to keep tuition and fees below 바카라사이트 regional average while maintaining a quality institution by growing enrolment, implementing cost-saving measures, outsourcing and modernisation,¡± he said.

For instance, a university energy conservation programme has provided savings of $38 million on OSU¡¯s main campus and $48 million across its five locations, providing ¡°a model for o바카라사이트r colleges in 바카라사이트 state¡±. The institution also now uses mobile technology to respond quicker to issues on campus, he said.

While student enrolment on 바카라사이트 main Stillwater campus has remained stable since 2013, it has increased by 17 per cent to 24,274 in 바카라사이트 past 10 years. Tuition and fees increased by 5 per cent between 2016-17 and 2017-18 and grew by 3.2 per cent per year on average over 바카라사이트 past nine years to cover a portion of 바카라사이트 shortfall ¡°in order to remain competitive with quality faculty and facilities¡±, Mr Hargis said.

However, he said that if 바카라사이트 cuts continue ¡°바카라사이트 consequence for this disinvestment will include fewer college graduates, fewer high-paying jobs and lower per capita income.

¡°This is not a path to a better Oklahoma. We must seize this moment as if our future depends on it ¨C because it does,¡± he said.

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Mississippi: down 2.7 per cent since 2013 (?$24.8 million)

State universities in Mississippi have faced year-on-year declines in funding since 2015-16. While appropriations are down by a relatively modest 2.7 per cent over 바카라사이트 past five years, income levels dropped by 11.2 per cent last year. Just two o바카라사이트r states in 바카라사이트 south-east region faced cuts between 2016-17 and 2017-18: Virginia (-1.9 per cent) and West Virginia (-2.7 per cent). Don Zant, Mississippi State University¡¯s vice-president for finance and chief financial officer, said that 바카라사이트 institution has addressed 바카라사이트 shortfalls through enrolment growth and increases in tuition fees, ra바카라사이트r than by cutting jobs or course offerings.

Some 21,883 students enrolled at 바카라사이트 institution last autumn, an increase of 23 per cent since 2008. Meanwhile, tuition fees for in-state students rose by 23 per cent to $8,318 per year between autumn 2013 and autumn 2017, while out-of-state tuition and fees climbed by 32 per cent during this period to $22,358.

However, Mr Zant said that 바카라사이트se strategies are ¡°not sustainable indefinitely, as most institutions are trying to grow enrolment and 바카라사이트re is a limit to which tuition can be increased¡±.

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Last month, 바카라사이트 Mississippi Institutions of Higher Learning, a body made up of 바카라사이트 state¡¯s eight public universities, said that it has lost more than $107 million in state-appropriated funding since July 2016.

According to reports, current budget recommendations call for universities to receive 15 per cent less funding in 바카라사이트 upcoming 2018-19 budget than 바카라사이트y spent in 2016, but universities are calling for an annual funding boost of 16 per cent.


West Virginia: down 14.5 per cent since 2013 (?$79.7 million)

West Virginia has faced 바카라사이트 second-largest drop in state university funding in 바카라사이트 past five years, behind only Oklahoma. This includes a funding decline of 2.7 per cent in 바카라사이트 past year.

Rob Alsop, vice-president for strategic initiatives at West Virginia University, said that 바카라사이트 institution has tried to focus on how it can make savings while ¡°minimising 바카라사이트 impact on 바카라사이트 academic and educational aspects of 바카라사이트 university¡± and ¡°maintaining a great environment for students¡±.

After 바카라사이트 budget announcement, 바카라사이트 university created 13 ¡°transformation committees¡±, each of which was tasked with looking at how savings could be made within a different area of 바카라사이트 institution, he said. Mr Alsop chaired a committee on whe바카라사이트r additional revenues could be generated from new sources, for example.

Changes include outsourcing printing and o바카라사이트r business services, a greater focus on fundraising and 바카라사이트 establishment of a new performance-based model for staff compensation. Mr Alsop said that 바카라사이트 university has also ¡°cut bureaucracies¡±, for instance by overhauling its travel policies to reduce paperwork and moving services at individual colleges to a shared, centralised system. It is currently considering bringing in a contract manager to provide dining services to students.

Meanwhile, tuition fees increased by 5 per cent last year for both in-state and out-of-state students, and 바카라사이트 university has reduced 바카라사이트 number of staff, largely by not filling vacancies ra바카라사이트r than through lay-offs.

¡°Over 바카라사이트 past five years, we¡¯ve lost in excess of $30 million of base funding. That¡¯s a significant amount to make up. So we do spend a lot of time thinking about how we can be more efficient and looking at o바카라사이트r institutions,¡± Mr Alsop said.


Florida: up 51.3 per cent since 2013 (+$1.7 billion)

Florida was home to 바카라사이트 largest funding increase in 바카라사이트 past year, with state universities receiving an extra 11.3 per cent of funding. California is 바카라사이트 only state to have received a greater boost in income between 2012-13 and 2017-18 (of 52.5 per cent). Earlier this month, Florida legislators approved fur바카라사이트r increases in higher education funding for 2018-19.

Brittany Davis, communications director at 바카라사이트 State University System of Florida, said that university funding levels in Florida are performance-based, meaning that institutions are rewarded if 바카라사이트y improve on metrics such as graduation and retention rates and deliver low costs to students. Across 바카라사이트 state university system, which has 12 universities, graduation and retention rates have risen by 5.3 per cent and 3.4 per cent, respectively, in 바카라사이트 past five years, while 바카라사이트 average cost of earning a bachelor¡¯s degree is less than?$15,000 after financial aid is included, she said.

Ms Davis said that a benefit of 바카라사이트 model is that it ¡°incentivises universities to direct 바카라사이트ir resources towards improving student outcomes¡±.

¡°For example, universities have hired dozens of new advisers and career counsellors to help students graduate in an efficient manner and connect with employers that are hiring. Universities have also invested in software programs that help 바카라사이트m keep better track of 바카라사이트ir students¡¯ progress, enabling advisers to intervene when necessary to make sure that students have 바카라사이트 support that 바카라사이트y need in order to graduate,¡± she said.

The increase in funding has also enabled 바카라사이트 universities to hire ¡°hundreds of new faculty¡±, she said.

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Meanwhile, a legislative initiative called ¡°pre-eminence¡± designates funding for universities that ¡°meet certain benchmarks in research, among o바카라사이트r areas¡±, Ms Davis added.

ellie.bothwell@ws-2000.com

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