As administrators of public universities wait for federal and state rescues, a number of private schools don’t have that luxury and are crafting cost-cutting initiatives. With their endowments down by 20-30 percent or more, and with little help expected from the “stimulus” package, these schools must cope with a drop in donations and possible resistance to raising tuition.
So far, the responses are varied. Perhaps the most strategic effort is the one announced in January by the president of Boston University, which faces an annual budget deficit of $10 million beginning in July. Robert Brown said that the university will review the centers and institutes that have proliferated over the years.
Like many universities, B. U. has on-campus organizations ranging from the Center for Anxiety and Related Disorders to the Center for the Study of the Longer-Range Future. Those that are not self-sufficient and that do not directly correlate with the university’s mission could be cut. Wendy Mariner, chair of the Faculty Council told the publication InsideHigherEd that if they are not considered “essential,” and if they need university money, “then I think they’re vulnerable.”
Boston University’s approach looks like a scalpel when compared with Brandeis University’s. The Waltham, Massachusetts, school put its art museum on the chopping block—or tried to. The Board of Trustees has announced plans to sell off a portion, though initially it seemed the entirety, of the university’s famous Rose Art Museum.
The decision to sell the art in the Rose aroused ire. Nearly 300 people met in a town-hall-styled meeting on February 11 to protest the decision. Some feel that selling art is contrary to the philosophy of Louis Brandeis, others don’t want the university to sell donated art, and still others believe that the decision violates the ethical codes of art museums. Despite all that, Brandeis appears to be moving forward. The entire collection is estimated to be worth $300 million, and any proceeds would help Brandeis cover a projected $10 million budget deficit.
Some of the richest of universities anticipate cuts. Stanford University’s endowment of $17.2 billion has been falling and is forecasted to drop 20 to 30 percent. On February 25, Stanford’s athletic department announced plans to reduce its budget by 13 percent. These plans included reducing travel expenses, a freeze in hiring for open positions and cutting 21 staff positions. The university announced earlier this year that it would look into cuts that might include eliminating entire sports programs; the latest announcement added that those cuts may still be an option.
Even Harvard is short of money–its endowment has dropped 22 percent to $28.8 billion. Drew Faust, president of Harvard, announced a few cash-saving plans. One is to offer early retirement to 1,600 employees; another is a substantial delay in building a $1 billion science complex in the Allston neighborhood of Boston, part of a major 350-acre redevelopment project. Slowing the construction frees up money without actually affecting students or faculty, although it perpetuates a decayed industrial wasteland that Allston residents want Harvard to clean up.
Smaller liberal arts colleges are also facing difficult times. Blackburn College, with 600 students, and Principia College, with 530, are Illinois colleges that have decided to drop their NCAA Division-III football teams. Blackburn is making the cut for financial reasons; Principia simply had a non-competitive team. Blackburn faces a deficit of $750,000, and the cut will save $150,000.
Some schools don’t have time to make strategic cuts. The College of Santa Fe was already struggling, and the recent economic decline made things worse. This New Mexico college announced plans, in December 2008, to be absorbed by New Mexico Highlands University, a public university. On February 18, the board of trustees declared a state of emergency, announced plans to reduce non-faculty staff hours by 25 percent, and invited faculty representatives to discussions regarding salary reductions. These steps are being taken in order for the school to simply complete the spring term.
Historically black institutions are experiencing serious financial woes as well. The New York Times pointed out on February 18 that they have smaller endowments than many schools and their students are more dependent on financial aid. Michael L. Lomax, chief executive of the United Negro College Fund, which supports many HBCUs, told the Times that the organization’s scholarship donations fell by 10 per cent in 2008, while applications for the scholarships were up by 26 percent.
Clark Atlanta University, an HBCU, recently announced its decision to cut 70 of its 230 faculty positions and 30 staff positions. The university did take great care to note that it is not at risk of closing, but rather is trying to balance its budget. Also in Atlanta, Spelman College, a leading HBCU for women, has announced plans to cut 35 positions as part of its efforts to meet a $4.8 million deficit. And Morris Brown College reached an eleventh-hour agreement on February 17 with the city of Atlanta despite coming short on the college’s $214,000 water bill. Morris Brown is already over $30 million in debt and would have been forced to close without the agreement.
In the midst of all this gloom, however, there is a bright spot. Catholic University of America, a 7000-student university in Washington, D.C., is addressing its low retention rate, which costs the school $6 million a year. How is it going to keep students? In part, it will create a mandatory humanities freshman course focusing on classic works—“great books.” The trustees, more than half of whom are Catholic bishops, have supported the program with $1.5 million for faculty and for support of graduate students.
Although the move is not a direct result of the economic crisis, it illustrates that cost-saving strategies have the potential to enhance education as well. The new “Freshman Year Experience” will replace large lecture classes with three seminars for no more than 18 students and will introduce students to books such as the Iliad, the Odyssey, and the Bible. “This is an important step for us,” says Michael Mack, who taught a similar seminar as a graduate student at Columbia University and helped design the program.
Desperate times lead to pragmatic measures. At least a few schools are protecting their core missions to find out what they can give up. There is something to be said for action.