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A new analysis of spending by liberal arts colleges | Inside Higher Ed

A study of how money is spent at three different liberal arts colleges.


Inside Higher Ed Story


PDF of the Report


From IHE: "The three (kept anonymous in the study to encourage full release of data) are similar in their size (1,560 to 1,648 enrollments), mission, academic offerings, the breadth of student activities and athletics, and loyal alumni. Students at all three institutions say that they picked them for their personalized approach to education and close contact with faculty members. Students give all three institutions high marks. (Lapovsky consults with colleges on their financial strategies; she said only one of the three colleges is a client.)


But the three institutions are also very different: in what they charge students, in their expectations of faculty, in their support for student activities, and in their admissions competitiveness."

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A Sobering Look at College Affordability - Head Count - The Chronicle of Higher Education

"So where does that leave colleges? Back in the day, tuition discounting was a way for colleges to get ahead, Mr. Zucker said, bringing in a better class than they otherwise could. Now, he said, with all of those economic forces working against students and their families, discounting is “necessary to live to fight another day.”"

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California Cuts Threaten the Status of Universities

California Cuts Threaten the Status of Universities | SCUP Links | Scoop.it

Nathan Brostrom, executive vice president of business operations for the University of California, said the system was now in the middle of the worst financial crisis since the Great Depression. In the last year, the state has cut $750 million from the system’s budget. This year, for the first time, the system receives more money from tuition than from state aid — but that only makes up for roughly a quarter of the cuts from the state. Over all, the budget is the same as it was in 2007, when there were 75,000 fewer students enrolled.


In recent years, many campuses have made a more concerted effort to recruit out-of-state students, who pay more in tuition. But some have criticized the practice, and last month one state lawmaker introduced legislation to cap the number of out-of-state students.


Part of the problem, officials say, is that the amount of money provided by the state has been unpredictable, making long-term planning difficult.


“If we don’t get some kind of change this year, we are going to have an immediate unfathomable situation that really has the potential to completely change the university,” Mr. Brostrom said. [end quote; emphasis added]

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4 Ways Technology Can Reduce Higher Ed Costs | Inside Higher Ed

Provocative:


"Senior campus technology leaders should be held accountable for developing and delivering on plans to:

  • Increase Quality
  • Increase Access
  • Reduce Costs

Every project that technology touches (which now means most things we do in higher ed) should be looked at through the lenses of quality, access and costs. It is no longer adequate to address one or two legs of this three legged stool."

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Response to the Challenge | University Business Magazine

Response to the Challenge | University Business Magazine | SCUP Links | Scoop.it

Roy Flores, chancellor of Pima County Community Colleges on preserving the institution and achieving its mission despite the new economic "normal."


"Underlying the cuts seems to be a shift in culture, a change in the tenor of the public conversation regarding higher learning. Of course, some of the talk is mere political theater, such as characterizing as “snobs” those who think everyone could benefit from some postsecondary education. But the trend seems to be that education is fair game when attempting to advance political agendas for short-term, tactical gain.


Now, I am not so naïve or nostalgic to believe that the good old days were free of hard dealing in education. But underneath the Realpolitik was a core belief that having people attending college is a public good. In statehouses, in some quarters of the nation’s capital and elsewhere, that fundamental proposition is being assailed."

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Learning Disabled Students Welcome | University Business Magazine

A nice review of leading-edge practices aimed at being inclusive:


"The learning problems for these undergrads range from ADHD and dyslexia to dyscalculia (the dyslexic equivalent of dealing with mathematics). Students receive ongoing, often daily support to navigate the regular college curriculum, with an emphasis on individualized learning techniques.


For generations, untold numbers of people with these very disabilities, many without knowing they had them, have attended and graduated college and pursued successful careers. But, experts in the field say, even greater numbers may not have made it to—or through—an undergraduate career.


Academic resource centers, study skills help, and accommodations such as untimed tests are commonly offered but don’t go far enough for students with LD, Strichart says. “Those resource centers are set up for the general college population and usually have no personnel to work with a special needs population,” he points out. 'You’re not getting specialized tutors or people certified in learning disabilities.'"

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Community college leaders told privatization is wave of the future | Inside Higher Ed

"Some say they are already functionally "private": Both Curtis and Glasper referenced a table created by D. Bruce Johnstone, a leading scholar of higher education who is former chancellor of the State University of New York. In the table, Johnstone looked at various qualities such as 'mission,' 'ownership,' and 'sources of revenue,' and established a continuum from "high 'publicness' " to 'high "privateness."'" For sources of revenue, the continuum goes from public funds as the primary source of college budgets to tuition funds as the primary source.


By such measures, Curtis said, his college is private. By next year, he said, the college will be close to having two-thirds of its revenue come from tuition revenue. But Curtis stressed that his college is embracing many other characteristics of privatization 'and they are not all bad.'"

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In conversation: UC Berkeley Chancellor Robert Birgeneau – Macleans OnCampus

In conversation: UC Berkeley Chancellor Robert Birgeneau – Macleans OnCampus | SCUP Links | Scoop.it

UC Berkeley chancellor stepping down. He's a former U of Toronto president. He's interviewed in Macleans On Campus, covering a broad range of issues about the UC system, Canadian higher education, and the challenges of the chancellor's roll. Planners will find it worth a quick read.


"Q: Just how bad did it get at Berkeley?


A: When I arrived there was a commitment from the government that our funding for paying faculty and staff salaries would go up four to five per cent a year. If that compact had held we would have $600 million this year. In fact, we have $240 million. So in five years, we’ve lost more than half of our money from the government to pay those salaries.


Q: How did you bridge that shortfall?


A: We were not naive about the budget. We whined somewhat, but we also knuckled down and said, “Okay, we need a comprehensive financial strategy.” I was president of U of T for four years, and I learned a lot. Some of the good management practices we introduced at Berkeley we had already introduced in Toronto.


Q: What did you borrow from U of T?


A: One thing is that every large institution like Berkeley and the U of T always has a large amount of money sitting waiting to be spent. Typically these amounts were of the order of [$750 million] to a billion dollars, and they’re sitting in accounts yielding the lowest interest rate. In Toronto we realized we were wasting money and began aggressively investing about half—$400 million or so. We introduced that at Berkeley and ended up generating an additional $30 million to $40 million a year in income."

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Survey finds 2 percent increase in mid-level administrative salaries | Inside Higher Ed

"Most mid-level administrators won't be seeing an increase in purchasing power, however, because the growth in inflation (3.2 percent) outpaced their raises. Consistent with recent CUPA-HR surveys on the salaries of senior administrators and of faculty members, the increases were larger at private institutions (2.2 percent) than at publics (1.4 percent)."

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College & University Financial Planning: Strategies and Lessons Recently Learned

College & University Financial Planning: Strategies and Lessons Recently Learned | SCUP Links | Scoop.it

Download this Planning for Higher Education article for free, through Friday only, in MOBI (Kindle), EPUB (iPad), and PDF formats.


"As colleges and universities face serious if not unprecedented financial challenges, financial planning is more important than ever. The authors reflect on their many years of experience in the financial planning game, thinking through the basics of the function and offering advice for going forward. The core image in this article illustrates the usefulness of the contents."

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Report on college loan delinquency rate raises alarms

Report on college loan delinquency rate raises alarms | SCUP Links | Scoop.it
Some experts have called the nation's soaring college debt load a "ticking time bomb" — a looming crisis threatening young adults, their families and the broader economy.


You could say that investment in higher education is our Number One resource, yet many forces are working against any such thing:


"Economists, meanwhile, have differing opinions about the strain of student loans to the broader economy. But there's reason to be concerned on this front.


When asked about such risks by a lawmaker in a hearing last week, Federal Reserve Chairman Ben S. Bernanke replied, 'Well, student loans are becoming a very large category of loans.'


Indeed, the New York Fed put the latest outstanding student loan balance at $870 billion. That's more than the total credit card debt, $693 billion, and car loan debt, $730 billion."

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Why Tuition Has Skyrocketed at State Schools

Why Tuition Has Skyrocketed at State Schools | SCUP Links | Scoop.it
The reason college tuition at public schools has grown so quickly in recent decades is that states have shifted more of the cost of education away from taxpayers and onto students.


“If you’re a state legislator, you look at all your state’s programs and you say, ‘Well, we can’t make prisoners pay, but we can make college students pay,’” said Ronald Ehrenberg, the director of the Cornell Higher Education Research Institute and a trustee of the State University of New York System.

College students do end up paying more. But in the past, after the economy recovered, most states did not fully restore the funds that were cut. As cuts accumulated in each business cycle, so did tuition increases.

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Digital Treasures | University Business Magazine

Digital Treasures | University Business Magazine | SCUP Links | Scoop.it
Monetizing digital assets translates to revenue potential, but an institution’s leaders must weigh the challenges and risks of charging for access to captured audio, video, and images.
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Leaner, Meaner State U—Kevin Kiley Reports on NACUBO 2012

Leaner, Meaner State U—Kevin Kiley Reports on NACUBO 2012 | SCUP Links | Scoop.it

Kevin Kiley’s must-read summary of NACUBO 2012 tells of other fast-moving change coming at us. This is a must-read!

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Ohio State Gets $483 Million Bid for Parking Lease

Ohio State Gets $483 Million Bid for Parking Lease | SCUP Links | Scoop.it

"“We can’t go on raising tuition forever. We’re looking at all our assets and asking, ‘If they’re nonessential assets, how can we turn them into revenue?’ ”


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book: Fundraising Strategies for Community Colleges: The Definitive Guide for Advancement (9781579227319): Steve Klingaman: Books

Fundraising Strategies for Community Colleges: The Definitive Guide for Advancement

~ Steve Klingaman (author) More about this product
List Price: $35.95
Price: $29.69
You Save: $6.26 (17%)

 Fundraising Strategies for Community Colleges is a hands-on, step-by-step guide to building a million-dollar-a-year development office.


Community colleges educate nearly half the undergraduates in America yet receive as little as two percent of all gifts to higher education. Private philanthropy is now essential to the mission of community colleges. In order to gain a fair share, community colleges can rely on this book to deploy strategies effectively used by 4-year colleges. The author, Steve Klingaman, has raised over $40 million dollars for two-year and four-year colleges over a 25-year development career.


With its emphasis on planning the work and working the plan, Fundraising Strategies for Community Colleges offers practical advice and concrete steps on how to build a strong advancement team with robust Annual Fund, grants, major gifts, planned giving programs.[end quote]

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As Elite Colleges Invite the World Online, Questions Remain on Their Business Plans - Planning News & Resources

As Elite Colleges Invite the World Online, Questions Remain on Their Business Plans - Planning News & Resources | SCUP Links | Scoop.it

"They're exciting. Yes. But we, also, have wondered what the business plan is."

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California facing higher $16 billion shortfall

California facing higher $16 billion shortfall | SCUP Links | Scoop.it

California's budget deficit has swelled to $16 billion and will force severe cuts to schools and public safety if voters fail to approve tax increases in November, warns Gov. Jerry Brown.


More pain for our colleagues in California. 

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#SCUP47 Presenter Heze Simmons Receives the 2011 Financial Executive of the Year Award

Simmons is presenting "Integrated Planning and Resource Allocation to Meet Changing Fiscal Realities" on Tuesday, July 10 at 10:45 am. Register for SCUP–47 by Monday, April 30 for early bird savings!


"Rochester Business Journal and Financial Executives International award this distinction to individuals who make significant contributions to their organizations and the community during the past year. Heze was recognized for student focused financial decision making, empowering and developing employees and leading efforts for the very successful shuttle between campuses. Outside of MCC, Simmons was recognized for his contributions to Jefferson Avenue Childhood Development Center.


In an article in the Rochester Business Journal, Heze said 'I see this award as a tribute to my staff and an extension of all the hard work they do, too.'"

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Is This the Answer to the Student Debt Crisis? FixUC's 5% Solution - DailyFinance

Is This the Answer to the Student Debt Crisis? FixUC's 5% Solution - DailyFinance | SCUP Links | Scoop.it
College tuition just keeps rising, and student loan debt is at an all-time high, leading to hefty loan payments that can overwhelm earners early in their careers.


What if students were indebted for 5% of the annual income for the 20 years after graduation?

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What's More Expensive Than College? Not Going to College

What's More Expensive Than College? Not Going to College | SCUP Links | Scoop.it
There is a cost to not educating young people. The evidence is literally all around us.


The International Youth Foundation's new Opportunity for Action (PDF) paper, according to The atlantic's Derek Thompson:


"Focusing on the United States and Europe, the IYF authors focus on the so-called "NEETs" of the developed world: those Not Engaged in Employment/education, or Training. A 2012 U.S. study put the social cost per NEET youth at $37,450, when you factored in lost earnings, public health spending, and other factors. That brings the total cost of 6.7 million NEET American youths to $4.75 trillion, equal to nearly a third of GDP, or half of U.S. public debt.


Statistics like this are a good reminder that, even though college tuition is famously outpacing median incomes, there is still something more expensive than going to school. Very often, that is not going to school."

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Fish? Check. Barrel? Check. | Inside Higher Ed

Dean Dad boils down the reasons behind the higher education cost spiral:


"The first, which is easy to explain, is cuts in public appropriations. My own college gets about five million per year less from the state than it got four years ago. (That’s over ten percent of its total budget.) That’s before adjusting for inflation. In many other states, it’s considerably worse. You simply cannot remove that much money that quickly without consequences.


The only problem with this theory is that while it’s unassailable in explaining the last few years, it isn’t as strong in explaining the preceding decades. Yes, the recent fiscal sinkhole matters, but tuition went up fast during better years, too.


The longer-term issue is productivity. And no, that’s not a euphemism for “you’re too lazy.” It’s simply to say that if you continue to measure learning in units of time, and those units don’t change, then your productivity increases will forever be zero, by definition. When the rest of the economy grows a few percent per year for decades, the gap compounds. It’s called “Baumol’s cost disease,” and it’s endemic to education and health care. And that’s true whether the professors or doctors are lazy, conscientious, or even heroic. It’s not about them."

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Piled Higher & Deeper | University Business Magazine

Piled Higher & Deeper | University Business Magazine | SCUP Links | Scoop.it

Graduate student debt runs out of control. in University Business magazine, Ann C. Logue shares some interesting observations:


"As of July 2012, graduate student loans will carry higher interest rates than in years past, and they won’t be subsidized. Another round of changes that increase borrowing costs are set for July 2013, and they won’t be the last. The reason is simple: The federal government is broke. 'Undergraduate is seen as somewhat of an entitlement,' says student loan debt management expert Paul Garrard of PG Presents in West Virginia. Hence, the brunt of cuts go to those who are older and stand to make more money from their additional education. Garrad is also a consultant to NSLP, the nonprofit financial aid solutions provider."

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Harvard And Yale Now Less Costly Than Public California Universities

Harvard And Yale Now Less Costly Than Public California Universities | SCUP Links | Scoop.it
Going to school at Harvard University is cheaper than attending a public university in California.


It depends on how you add it up, but it's real. Education as a public good is dissipating.

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State Cutbacks Curb Training in Jobs Critical to Economy

State Cutbacks Curb Training in Jobs Critical to Economy | SCUP Links | Scoop.it
State colleges are cutting financing for technical, engineering and health care programs as the need for training in those fields grows.


Not a good thing.

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