A new survey reports that the current financial situation for public universities in the United States is "precarious" as a result of deep cuts in state appropriations during the recession preceded by decades of declining state support. "Coping Strategies of Public Universities During the Economic Recession of 2009" reports that 85 percent of institutions reported a decrease in state appropriations in fiscal year 2009. To help close budget gaps, many universities are using a variety of short-term strategies, such as freezing out-of-state travel, mandating furloughs and suspending or eliminating professional development programs. Nearly 7 percent of responding universities asked donors to allow restricted gifts to be used for other purposes. Long-term strategies include investing in energy savings (78 percent), increasing enrollment (63 percent) and making permanent changes to staffing levels for both professional and support staff (40 percent).

Universities with cuts of 10 percent or more, about half of those surveyed, were more likely to report more drastic and permanent cost-cutting, including laying off staff, reducing or eliminating course offerings, dissolving departments and outsourcing operations and services.

Potential sources of new revenue being considered included creating industry partnerships, expanding continuing education and renewing focus on private fundraising campaigns.

Other key results:
• Fifty-five percent report that declines in state appropriations are harming their ability to hire and retain faculty and staff, invest in new technology and maintain campus infrastructure.
• More than 50 percent indicate that the cuts are affecting students by harming their ability to maintain academic programs and course offerings, student support services and graduate student support.
• More than half believe more cuts are likely; 53 percent are pessimistic about their institution's fiscal future during the next 18 months.

The Association of Public and Land-Grant Universities surveyed chief academic officers at 188 member universities about the financial situation on their campuses.

Tags: Public Universities Recession December 2009

This entry was posted on Tuesday, December 22nd, 2009 at 2:06 pm