It’s not only students who are accruing huge amounts of debt these days – colleges are also suffering. Cuts in state funding for higher education combined with backlash against tuition increases have left many administrators scrambling for funds. Writing in The New York Times on Monday, Andrew Martin interviewed E. Gordon Gee, the president of Ohio State University, who’s searching for a new business model.
“The notion that universities can do business the very same way has to stop,” Mr. Gee told the paper.
Technology is a big contributor to increased spending. Computers and wireless networks are just a couple of the biggest expenses. And, as competition for students has grown, colleges have been playing a game of keep-up, trying to offer the most programs, the fanciest gyms, the most delicious food, the biggest dorm rooms and much more. Cutting inefficiency has been one way in which colleges are striving to limit their outgoings, like Ohio State’s adoption of a common expense report. Martin reports that this will save the college $75 million.
Bowling Green State University is another Ohio institution that is trying to decrease expenditure. It’s doing this by laying off staff, capping pay raises and encouraging employees to take early retirement. It’s also trying to increase alumni donations. These have traditionally been a significant factor in most college’s budgets, and it’s to be expected that the pressure on alumni to contribute will increase.
Read The New York Times piece in its entirety here.
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