Colleges in Dire Financial Straits

[KamSlerm]

I say throw the book at em.  In fact, the worst ones I would charge with domestic terrorism.  They knew this would unravel and cause huge problems.  How is causing chaos for personal financial gain any different from doing it for idealogical reasons?

[downer]

I say throw the book at em.  In fact, the worst ones I would charge with domestic terrorism.  They knew this would unravel and cause huge problems.  How is causing chaos for personal financial gain any different from doing it for idealogical reasons?

I'm all for holding administrators accountable for their misdeeds and irresponsibility. However, domestic terrorism is a charge that should should be reserved for those who deploy terror and encourage hate.

[marshwiggle]

I say throw the book at em.  In fact, the worst ones I would charge with domestic terrorism.  They knew this would unravel and cause huge problems.  How is causing chaos for personal financial gain any different from doing it for idealogical reasons?

I'm all for holding administrators accountable for their misdeeds and irresponsibility. However, domestic terrorism is a charge that should should be reserved for those who deploy terror and encourage hate.

I'd even restrict it to those who use or encourage physical violence, since "encouraging hate" has been conflated to mean almost anything in our current culture.

[spork]

Not dire, but enrollment declines and a budget deficit at Columbia College Chicago: https://www.chicagobusiness.com/education/columbia-college-chicagos-uphill-climb.

What stands out to me: how many colleges out there can't build a new $55 million student center to attract students? I know mine can't.

[polly_mer]

Alaska in less dire straits: https://www.insidehighered.com/news/2019/08/14/alaskas-governor-and-university-reach-compromise-nearly-halve-budget-cut

They are phasing in a smaller cut over three years and are still going to consolidate from three universities to one university.

[Hibush]

Alaska in less dire straits: https://www.insidehighered.com/news/2019/08/14/alaskas-governor-and-university-reach-compromise-nearly-halve-budget-cut

They are phasing in a smaller cut over three years and are still going to consolidate from three universities to one university.

The notion has been clearly expressed that he flagship campus in Fairbanks should be closed because they do research there. This theme recurs in the federal adminstration, and is echoed in Alaska. I don't think it is a coincidence.

[polly_mer]

Financial exigency off in Alaska

[Hibush]

Financial exigency off in Alaska

The head regent has a weird sense of luxury: "We've been given the luxury of a three-year glide path" and a smaller reduction, Anderson said, "but remember, the reduction is $70 million."

Terminating exigency may be premature and unjustified, but the politics of the situation makes many involved suspend disbelief.

[rth253]

Any reads on the financial health of Lyon College in AR, or Erskine in SC?

[polly_mer]

Any reads on the financial health of Lyon College in AR, or Erskine in SC?

You can do the research yourself at https://guidestar.org for the last couple 990 forms and through https://nces.ed.gov. 

Even just a Google search with "<college name>" and "<accrediting body>" will often turn up concerns like:

http://www.indexjournal.com/news/state/erskine-looks-to-charters-for-needed-revenue-students/article_3d95d1e1-4096-5d57-9619-401d58330a12.html (from 2017 after notices of having been on probation for financial reasons and getting off probation in 2015)

and

https://www.hlcommission.org/component/directory/?Action=ShowBasic&Itemid=&instid=1016&lang=en (indicating a string of requests related to financial indicators)

After only 30 seconds of web search, both institutions seem to have some significant yellow flags that likely would need to be investigated further.  However, those yellow flags along with the Wikipedia pages indicating very small, religious-affiliated institutions with minimal faculty seem to reaffirm the impression of financially struggling.

[spork]

"Expert predicts 25% of colleges will fail in the next 20 years"

[spork]

Any reads on the financial health of Lyon College in AR, or Erskine in SC?

From IRS documents:

Lyon had negative net revenue in FYs 2009, 2010, 2011, 2013, and 2017.

Erskine had negative net revenue FY 2009 through FY 2016.

Both average a historical FTE undergrad enrollment of about 600. I'd say neither one is long for this world.

[Hibush]

"Expert predicts 25% of colleges will fail in the next 20 years"

The expert does not provide any rationale for the number in that short piece. The descriptions make it sound as if 25% of colleges may close, but they enroll <2% of the students. The account also does not mention the numerous ephemeral for-profit outfits that inflate the numbers. Not surprisingly, the headline is overstating the impact. It is not as if the University of California is on the verge of shutting two campuses.

[marshwiggle]

"Expert predicts 25% of colleges will fail in the next 20 years"

From the article:

"There are huge parts of society that have to shift with that," Horn said. "It's not just expectations, it's how employers hire and a huge reason people are going to school is for social reasons."

The sooner the system crashes and burns because of "social reasons", the sooner it will be possible to focus on improving the quality of education.

[rth253]

Nyack College is attempting to sell its campus in Rockland for $100 million (apparently, it has been on the market since January with no apparent takers yet, though) and will be completely shutting down the campus and moving everything to part of an office building in NYC in the coming Spring semester. According to a student quoted, this was just dropped on students with little notice or explanation. The school's in a lot of debt, and I'm wondering if they'll be able to pull off this sale and save it. https://world.wng.org/2019/08/drowning_in_red