Colleges in Dire Financial Straits

[spork]

Benjamin Franklin Institute of Technology in merger discussions with Wentworth Institute of Technology:

https://www.bostonglobe.com/2020/09/20/metro/benjamin-frankin-institute-technology-wentworth-are-talking-merger-secret/.

Interesting. A friend works at BFIT. Hope they'll be OK.

M.

As usual with Boston-area colleges, the real estate deal in the mix is interesting. BFIT's plan to sell off its South End location to move to Nubian Square could be a cash windfall for Wentworth.

[mamselle]

It could also negatively affect students coming from parts of town where public transportation to the Wentworth campus is practically nil--or takes two hours.

Going from East Boston to the South End--not too bad.

Going all the way out on the Huntington Ave. line (whose cars are notoriously slow and far between)--abysmal.

Since many of those students are in vocational/prep programs like car repair, and are often not well-placed financially, it's another case where those in need of good programs, with little flexibility as to life choices and locational change, will have the rug pulled out from under them, yet again.

When trustees act more like corporate shareholders than academic stewards, things like this get really nasty.

M.

[spork]

Keuka College, negative net revenue FYs 2015-2018:

https://www.fingerlakesdailynews.com/2020/09/23/633774/.

[polly_mer]

University of Delaware faces $250M shortfall so layoffs and furloughs announced: https://www.newarkpostonline.com/news/facing-a-250-million-deficit-ud-announces-layoffs-and-furloughs/article_b3a24534-0afe-57bb-bc88-cb95f0a850da.html

[spork]

University of Delaware faces $250M shortfall so layoffs and furloughs announced: https://www.newarkpostonline.com/news/facing-a-250-million-deficit-ud-announces-layoffs-and-furloughs/article_b3a24534-0afe-57bb-bc88-cb95f0a850da.html

While cancellation of events for which campus facilities were rented undoubtedly represented a loss of revenue, I find it highly doubtful that UD normally profits from athletics ticket sales.

[Durchlässigkeitsbeiwert]

University of Delaware old financial statement are available at
https://sites.udel.edu/vpfinance/reports/audited-financial-statements/
Potential sources of revenue decrease (2019 revenue numbers):
Sales and services of auxiliary enterprises - $137 million
Grants, contracts, and other exchange transactions - $201 million
State operating appropriations - $122 million

Switching to remote essentially wipes the first source. So only moderate decrease in other revenues is needed to bring deficit to reporter quarter billion provided operating expenses remain flat.

[Hibush]

University of Delaware old financial statement are available at
https://sites.udel.edu/vpfinance/reports/audited-financial-statements/
Potential sources of revenue decrease (2019 revenue numbers):
Sales and services of auxiliary enterprises - $137 million
Grants, contracts, and other exchange transactions - $201 million
State operating appropriations - $122 million

Switching to remote essentially wipes the first source. So only moderate decrease in other revenues is needed to bring deficit to reporter quarter billion provided operating expenses remain flat.

The $250 million represents 25% of their operating budget. That's a lot. Even a 5% cut requires eliminating important functions.

The revenue from auxiliary services ($137 million) is offset by the $115 million cash outlay to provide those (housing, dining, student health; athletic tickets are not reported). They also have $18  million in legit depreciation that makes enterprise just break even, but they are worried about cash flow right now.

[spork]

Houghton College, negative net revenue for FYs 2014-2017, does tuition reset:

https://www.the-leader.com/news/20200922/houghton-college-resets-tuition-to-aid-students-during-covid-19.

Houghton's reported 12-month FTE undergraduate enrollment dropped from ~ 1,350 pre-2008 recession to under 1,000 in 2019.

[polly_mer]

UMass Amhearst Puts 850 Workers on Indefinite Furlough: https://www.wgbh.org/news/education/2020/08/27/umass-amherst-puts-850-workers-on-indefinite-furloughs

And that's the good outcome the union negotiated.

[spork]

Not truly dire given the 10,000+ enrollment, but an arbitrator has ruled that University of Akron can invoke force majeure to layoff unionized faculty:

https://www.cleveland.com/education/2020/09/arbitrator-sides-with-university-of-akron-in-layoff-of-nearly-100-union-faculty.html.

[mamselle]

UMass Amhearst Puts 850 Workers on Indefinite Furlough: https://www.wgbh.org/news/education/2020/08/27/umass-amherst-puts-850-workers-on-indefinite-furloughs

And that's the good outcome the union negotiated.

No relation to the newspaper magnate: it's Amherst.

;--}

The UMass system has held out for a while now, but it's getting more worrisome.

A friend teaches Philosophy at the Columbia Point campus; I'm curious how they're doing. 

M.

[jimbogumbo]

Again. https://www.insidehighered.com/quicktakes/2020/10/02/financial-concerns-continue-city-college-san-francisco

[apl68]

Not just a school, but students in dire financial straits--Arkansas Baptist College is one of ten schools nationally being threatened with loss of eligibility to disburse federal financial aid because they've had more than 30% of students default on student loans for three years in a row.

https://www.nwaonline.com/news/2020/oct/01/defaults-leave-college-facing-an-aid-lockout/


Can't recall whether ABC has appeared on either version of this thread before.  They're an HCBU that has had repeated financial and accreditation issues in recent years.  And of course the COVID year isn't doing them any favors.  Size-wise, they're in the Super Dinky league.

[spork]

Not just a school, but students in dire financial straits--Arkansas Baptist College is one of ten schools nationally being threatened with loss of eligibility to disburse federal financial aid because they've had more than 30% of students default on student loans for three years in a row.

https://www.nwaonline.com/news/2020/oct/01/defaults-leave-college-facing-an-aid-lockout/


Can't recall whether ABC has appeared on either version of this thread before.  They're an HCBU that has had repeated financial and accreditation issues in recent years.  And of course the COVID year isn't doing them any favors.  Size-wise, they're in the Super Dinky league.

It has a 12% graduation rate. Your tax dollars hard at work subsidizing a church.

[apl68]

Not just a school, but students in dire financial straits--Arkansas Baptist College is one of ten schools nationally being threatened with loss of eligibility to disburse federal financial aid because they've had more than 30% of students default on student loans for three years in a row.

https://www.nwaonline.com/news/2020/oct/01/defaults-leave-college-facing-an-aid-lockout/


Can't recall whether ABC has appeared on either version of this thread before.  They're an HCBU that has had repeated financial and accreditation issues in recent years.  And of course the COVID year isn't doing them any favors.  Size-wise, they're in the Super Dinky league.

It has a 12% graduation rate. Your tax dollars hard at work subsidizing a church.

Honestly, I haven't gotten the impression that the affiliated church has a better reputation than the school does.