Colleges in Dire Financial Straits

[dismalist]

...

The most efficient solution is to fire all faculty members so that more non-teaching staff can be hired:

https://www.theatlantic.com/ideas/archive/2024/05/bureaucratic-bloat-eating-american-universities-inside/678324/

But the source of bureaucratic bloat is that it is financed. There's too much money around.

[spork]

Ithaca College misses fall enrollment target by 15%:

https://theithacan.org/55656/news/college-announced-it-missed-enrollment-goal-during-all-college-welcome/


Look at its net revenue compared to sales of assets:

https://projects.propublica.org/nonprofits/organizations/150532204

[Hibush]

Ithaca College misses

While they missed the target, they hit the same number as the last several years. They cut expenses in a big move three years ago, to 2015 levels, and that number has stayed steady. Those numbers, from both sources, make it look as if IC is in about the same shape as the last couple years.
However, the revenue side is scary, when 10% of the 2022-23 AY total is from sale of assets.

[methodsman]

Big endowment, decent size, great student outcomes. It's not going anywhere. 

mm

Ithaca College misses fall enrollment target by 15%:

https://theithacan.org/55656/news/college-announced-it-missed-enrollment-goal-during-all-college-welcome/


Look at its net revenue compared to sales of assets:

https://projects.propublica.org/nonprofits/organizations/150532204

[Ruralguy]

Endowment is too small for 6000 students. Needs to be at least 5 times larger to matter at all for that kind of student body. I know that doesn't sound right to some, but think about what the budget likely is for 6,000 students (at least 500 million bucks) and then think what you can draw from an endowment of 350 million (maybe 15 million a year?).  They might also have an annual fund of 5-10 million. So, make it something like 20 million. The other 480 million has got to come mostly from students (and grants, but mostly, students). Even 5x the endowment is merely useful, and not a panacea if you can't attract students (although with bigger endowment also comes more attractive programs and facilities).

Its a tough business, and even the seemingly rich are in real trouble.

[dismalist]

Ithaca College misses

While they missed the target, they hit the same number as the last several years. They cut expenses in a big move three years ago, to 2015 levels, and that number has stayed steady. Those numbers, from both sources, make it look as if IC is in about the same shape as the last couple years.
However, the revenue side is scary, when 10% of the 2022-23 AY total is from sale of assets.

I have an emotional attachment to Ithaca College going back to about 1970. Visited a musician high school friend there then.

I love the names of categories in form whatever: Sale of assets is called revenue! No, sale of assets is better named as "financing the deficit".

Look, we aren't even at the so-called enrollment cliff yet, and the adjustment is proceeding apace by closing down colleges. 'Twould be better if non-profits could be bought out by other non-profits, 'ya know, a hostile takeover, or some such. That could save the best parts of a college from going down the tubes, instead of having the endowment, however large or small, spent on keeping the present board in wine, women, and song.

Putting aside rationality for affection, Cornell could take over the place! High above Cayuga's waters ... .

[spork]

Baldwin Wallace University.

For FY 2023, a $16 million deficit despite $12 million in contributions and selling $13 million in assets.

[apl68]

Baldwin Wallace University.

For FY 2023, a $16 million deficit despite $12 million in contributions and selling $13 million in assets.

They've just cut some 20% of their faculty!  That's some dramatic restructuring.  They seem to be cutting both the artsy programs that everybody is cutting (A major in jazz--like that's going to survive in today's world!) and a trendy business program or two that evidently didn't pan out. Wonder what sort of enrollment declines they've seen in recent years?

[lightning]

Baldwin Wallace University.

For FY 2023, a $16 million deficit despite $12 million in contributions and selling $13 million in assets.

They've just cut some 20% of their faculty!  That's some dramatic restructuring.  They seem to be cutting both the artsy programs that everybody is cutting (A major in jazz--like that's going to survive in today's world!) and a trendy business program or two that evidently didn't pan out. Wonder what sort of enrollment declines they've seen in recent years?

BW has suffered, for a very long time, from negligent and incompetent leadership, which made the impact of enrollment declines much worse.

It's interesting to see that all the academic dean positions got eliminated EXCEPT for the dean running the performing arts unit. I'd love to know how they got away with that.

[kaysixteen]

BW also probably made a bad choice, 5 years ago, in severing its ties to the United Methodist Church, as denominational affiliation would doubtless financially be a help.

[Hibush]

BW also probably made a bad choice, 5 years ago, in severing its ties to the United Methodist Church, as denominational affiliation would doubtless financially be a help.

UMC lost ~7500 congregations over that time, and their budget has dropped by over a billion dollars. I doubt they are in a position to help.

[dismalist]

Universities started losing it when they left the bosom of the Church! Ups and downs since then, of course.

[kaysixteen]

The denom is losing churches, largely because conservative ones are bolting, leaving the rump much more liberal.... and much more simpatico with the clear views of BW, at least as much as I could discern from the wikipedia page.  But the denom is very definitely still quite wealthy, and many of its adherents even more so.  And no one really would want to argue that having a denom affiliation, as opposed to not having one, would not be a bonus for almost any school, financially (and in terms of student recruitment)...

[FishProf]

I keep reading that as a DEMON affiliation.  Now that would be a powerful asset in trying times....

[kaysixteen]

Well, some denoms are much closer to demons than others, nowadays.