Colleges in Dire Financial Straits

[spork]

Not truly dire because it's public, but Keene State continues to eliminate faculty positions and academic programs:

https://www.sentinelsource.com/news/local/keene-state-ending-6-academic-programs-after-final-faculty-cuts/article_b817/

[mamselle]

Link not working, I'll try searching directly.

M.

[spork]

Link not working, I'll try searching directly.

M.

Probably my fault. Try this one:

https://www.sentinelsource.com/news/local/keene-state-ending-6-academic-programs-after-final-faculty-cuts/article_b817fbe3-0423-597b-b602-2a3b9a5f6fb1.html

[dr_codex]

Two things in particular jumped out at me:


In addition to saving $3 million annually from the latest faculty cuts, Treadwell said Keene State is shedding a substantial sum in "curricular efficiency work" that involves reducing professors' administrative work in favor of teaching and other student engagement.

If I read that right, "curricular efficiency work" means the end of course releases for service tasks -- chairing committees, for example. My place did this during Covid, and I think people were surprised at the number of side deals that had been cut along the way.

After making what she said will be the last of those cuts, Treadwell said college officials are turning to strategic planning for the future, including the joint work with the rest of the state's university system.

It's probably just poorly phrased, but if it isn't, it's telling, putting the cart before the horse. Wouldn't you do the strategic planning before making cuts? Otherwise, you're just panic reacting. And it makes nonsense of many of the arguments for closing programs and increasing staffing of others. If you are hiring (permanent faculty, I'm assuming) for programs only to meet current demand, you aren't doing all of your job.

[Hibush]

Two things in particular jumped out at me:


In addition to saving $3 million annually from the latest faculty cuts, Treadwell said Keene State is shedding a substantial sum in "curricular efficiency work" that involves reducing professors' administrative work in favor of teaching and other student engagement.

If I read that right, "curricular efficiency work" means the end of course releases for service tasks -- chairing committees, for example. My place did this during Covid, and I think people were surprised at the number of side deals that had been cut along the way.

After making what she said will be the last of those cuts, Treadwell said college officials are turning to strategic planning for the future, including the joint work with the rest of the state's university system.

It's probably just poorly phrased, but if it isn't, it's telling, putting the cart before the horse. Wouldn't you do the strategic planning before making cuts? Otherwise, you're just panic reacting. And it makes nonsense of many of the arguments for closing programs and increasing staffing of others. If you are hiring (permanent faculty, I'm assuming) for programs only to meet current demand, you aren't doing all of your job.

Perhaps the panic reaction no is making them realize that strategic planning will be better than continuing to panic.

[spork]

Courtesy of simpeSimon's post about HigherEdDive in another thread, a story about Ohio Wesleyan University:

https://www.highereddive.com/news/inside-iowa-wesleyan-universitys-plan-to-find-better-financial-footing/603261/.

The story fails to mention the following:

• Plunkett arrived at Ohio Wesleyan after memorably quitting her job as president of Burlington College prior to its closure. (To be fair, her predecessor Jane Sanders, the wife of Bernie Sanders, bears much of the responsibility for running Burlington College into the ground.)
• Form 990s show contributions comprising ~ 20% of Ohio Wesleyan's total revenue  in FYs 2018 and 2019, which covered about 1/6 of expenses, after budget deficits in FYs 2016 and 2017. But the FY 2020 990 shows contributions falling by 1/3 and a budget deficit of $9 million on $118 million in expenses. Clearly the school is not generating sufficient revenue from operations.

[jimbogumbo]

Courtesy of simpeSimon's post about HigherEdDive in another thread, a story about Ohio Wesleyan University:

https://www.highereddive.com/news/inside-iowa-wesleyan-universitys-plan-to-find-better-financial-footing/603261/.

The story fails to mention the following:

• Plunkett arrived at Ohio Wesleyan after memorably quitting her job as president of Burlington College prior to its closure. (To be fair, her predecessor Jane Sanders, the wife of Bernie Sanders, bears much of the responsibility for running Burlington College into the ground.)
• Form 990s show contributions comprising ~ 20% of Ohio Wesleyan's total revenue  in FYs 2018 and 2019, which covered about 1/6 of expenses, after budget deficits in FYs 2016 and 2017. But the FY 2020 990 shows contributions falling by 1/3 and a budget deficit of $9 million on $118 million in expenses. Clearly the school is not generating sufficient revenue from operations.

Actually Iowa Wesleyan. Ohio Wesleyan is fine.

[spork]

Oops, my mistake. Sorry.

I don't know what crack I was smoking. I was looking at Ohio Wesleyan's Form 990s. Iowa Wesleyan's financials are even worse: deficits every year from FY 2013 through 2020. The deficits are 10-20% of total expenses. Contributions are 10-20% of total revenue. Recently, annual investment income (from endowment) has been less than $200K. In FY 2019 it was negative.

[apl68]

Oops, my mistake. Sorry.

I don't know what crack I was smoking. I was looking at Ohio Wesleyan's Form 990s. Iowa Wesleyan's financials are even worse: deficits every year from FY 2013 through 2020. The deficits are 10-20% of total expenses. Contributions are 10-20% of total revenue. Recently, annual investment income (from endowment) has been less than $200K. In FY 2019 it was negative.

That does sound dire.

The article quotes their President as saying, "We need to stop saying we need to look for better students."  That wasn't a very felicitous thing to say.  It makes them sound desperate.  I also wouldn't feel too good about that if I were a prospective student or parent that Iowa Wesleyan reached out to.

[marshwiggle]

Oops, my mistake. Sorry.

I don't know what crack I was smoking. I was looking at Ohio Wesleyan's Form 990s. Iowa Wesleyan's financials are even worse: deficits every year from FY 2013 through 2020. The deficits are 10-20% of total expenses. Contributions are 10-20% of total revenue. Recently, annual investment income (from endowment) has been less than $200K. In FY 2019 it was negative.

That does sound dire.

The article quotes their President as saying, "We need to stop saying we need to look for better students."  That wasn't a very felicitous thing to say.  It makes them sound desperate.  I also wouldn't feel too good about that if I were a prospective student or parent that Iowa Wesleyan reached out to.

But it is definitely true. Unless a place has a solid reputation for being elite, there's no way to get better students. (Elite places who get an abundance of applicants can be as selective as they want.) So the institution needs to come to grips with the students they actually can get, although stating it publicly in so many words is not going to do them any favours.

[spork]

Oops, my mistake. Sorry.

I don't know what crack I was smoking. I was looking at Ohio Wesleyan's Form 990s. Iowa Wesleyan's financials are even worse: deficits every year from FY 2013 through 2020. The deficits are 10-20% of total expenses. Contributions are 10-20% of total revenue. Recently, annual investment income (from endowment) has been less than $200K. In FY 2019 it was negative.

That does sound dire.

The article quotes their President as saying, "We need to stop saying we need to look for better students."  That wasn't a very felicitous thing to say.  It makes them sound desperate.  I also wouldn't feel too good about that if I were a prospective student or parent that Iowa Wesleyan reached out to.

But it is definitely true. Unless a place has a solid reputation for being elite, there's no way to get better students. (Elite places who get an abundance of applicants can be as selective as they want.) So the institution needs to come to grips with the students they actually can get, although stating it publicly in so many words is not going to do them any favours.

Hence the attempt by many of these struggling schools to continue selling the experience of "play the sport you played in high school" rather than an education.

[mamselle]

"Ooohhhhh----there's nothin' half-way about the Iowa way to treat you,
If we treat you which we may not do at all.."

Sorry, interthreaduality and all that. Having been in 'Music Man' twice as a kid does that to you.

Back to being dire...

M.

[Mobius]

The national AAUP is a third party, despite the president's assertions.

https://twitter.com/imulvey/status/1416446708473548801?s=20

[spork]

Bethune Cookman University:

https://hbcugameday.com/2021/07/17/sources-massive-admin-change-at-bethune-cookman/.

Highest salaried employees as of filing of the FY 2020 990:

LYNN THOMPSON (VP INTERCOLLEGIATE ATHLETICS)   $303,978
DR E LABRENT CHRITE (PRESIDENT (BEG. 07/2019))   $269,593
TERRY E SIMS (HEAD COACH)   $218,644

The school has been in deficit every year since 2014. It's got a track record of being a cesspool of fraud and embezzlement.

[TreadingLife]

The article quotes their President as saying, "We need to stop saying we need to look for better students."  That wasn't a very felicitous thing to say.  It makes them sound desperate.  I also wouldn't feel too good about that if I were a prospective student or parent that Iowa Wesleyan reached out to.

One possible translation of "we need better students" is "we need to find students who we can retain and graduate, otherwise our net tuition revenue and graduation rates will both continue to plummet" 

Another translation would be better students=full pay students. It is probably a bit of both.