Though once seen as more financially secure than other institutions, public flagship universities are finding that they are not immune to the various challenges that threaten the nation’s colleges and universities overall, Missouri State University President Emeritus Michael T. Nietzel posits in a new piece for Forbes.
Nietzel says the “hard times” that flagships face are due to the arrival of a long-anticipated “enrollment cliff,” disillusioned international students “turning away from American schools,” the decline of federal research funding, unprofitable athletic programs and the pace of inflation.
Recently, a growing laundry list of institutions have announced staggering budget deficits; there is a $12 million budget deficit at the University of Vermont; a $65 million budget shortfall at the University of Oregon; a 10% cut in state support at the University of Maryland that led to a hiring freeze and the elimination of up to 150 jobs; and a $15 million deficit at the University of Wyoming.
The University of Oregon recently announced a $65 million budget shortfall.
The bigger picture:
While news headlines as of late are making it easier to compile a list of struggling institutions – be they public flagships or other institutions – the more pressing issue is finding actionable and effective solutions that leaders can use.
One recent report – based on a survey of higher education finance and strategy leaders that collectively represented operating budgets totaling $26 billion among public, private and community colleges – found that about three out of four institutions “lack the necessary infrastructure for efficient and streamlined financial planning.”
The Association of Governing Boards of Universities and Colleges also warns against falling into “crisis mode” and calls for institutions to “put more structures in place to help make better-informed decisions … using available data with a full understanding of the trade-offs involved.”
Some leaders at the flagship institutions that Nietzel cites are just now beginning to take that message to heart. For instance, Alicia Estay, vice president for finance, administration and human resources at the University of Vermont, and Jay Jacobs, the vice president for enrollment management, acknowledged in an email reviewed by VTDigger that the university “cannot cut its way to a sustainable future,” and vowed to position the university to “respond more effectively to a shifting enrollment landscape in the years ahead rather than relying on short-term fixes to address recurring budget pressures.”
