Recently, many schools are facing the crisis of declining enrollment rate of new students and financial tightening, resulting in many schools having to close down. For these cases, many people may blame covid-19!
according to NBC news, West Missouri State University has been recruiting for 10 years since the last economic crisis, but the number of full-time teachers has increased by 5% due to a sharp drop of nearly 25% in undergraduate enrollment rate, and other expenses of the school continue to increase. In the past five years, the University’s annual budget has exceeded several million US dollars, and the school’s cash reserves have declined precipitously.
some members of the school’s board of directors are unbelievable in the face of these facts, however, the former principal in charge of financial supervision has retired. At a meeting in April, the current president said that after the closure of the campus caused by the coronavirus pandemic, he planned to cut expenses substantially because of the previous budget problems.
so far, the school has laid off nearly one-third of its staff and reduced at least 98 majors, including English, history, chemistry, biology, philosophy, sociology, political science, computer technology, music and art.
with more and more staff and facilities in various schools, however, in the situation of declining enrollment rate, even if schools provide preferential policies to attract more students, it can not make up for the decreasing net income. However, many schools in order to maintain the reputation of the campus, or choose to spend money to solve.
for example, in the scandals of gynecologists on campus in Southern California, the former president spent $215 million to cover up the incident.
there are thousands of universities in the United States. Their business model is like that of enterprises, which needs a lot of money to maintain. But it’s not a business, because schools need to be responsible for their students. In this case, the school’s decision-making is easily affected by some emergencies, leading to financial difficulties, such as the current epidemic situation.
“the consequence of the whole epidemic on higher education is that they have exposed the fact of poor financial management for more than a decade.” So says Fernanda Borges Nogueira, senior network project manager at the Roosevelt Institute.
EAB, a consulting firm, found that at the time of the outbreak of the Xinguan epidemic, a quarter of the universities had no financial emergency plan, which was one of the main reasons for the crisis.
large picture mode: therefore, after the outbreak of Xinguan epidemic, we have seen the situation on the Internet. Many schools are in deficit and the government has made emergency funding, but some schools have been closed down.
this autumn semester is destined to be a tough one for American universities. Public schools are OK, government funding has been reduced, but at least they still have money; but private schools face greater risks, and income may fall precipitously, especially in the northeast and Midwest of the United States.
the teaching staff were dismissed, and even the whole professional department was dissolved. Although most schools are avoiding higher tuition fees, historical data show that eventually these “give up income” will fall on students and parents.
Kevin McClure, associate professor of higher education at the University of North Carolina at Wilmington, believes that if universities reform and optimize the financial competition of schools before the outbreak of the epidemic, the situation will be good.
other experts said that even after the severe economic downturn in 2008, higher education leaders still insisted on maintaining high financial risks in their institutions.
according to the national student information exchange research center (nscrc), the overall enrollment of American universities has fallen by about 12% since the last recession. There are also federal data showing that the number of university employees across the country has increased by 5%. To put it bluntly, American higher education is adding more employees and serving fewer customers.
in order to cope with the declining enrollment rate year by year, private colleges and universities have been providing more and more concessions for potential students, trying to attract more students. According to a report from the National Association of universities and university business people, schools now need to use half of their tuition income to return them to students in the form of financial aid or discounts.
this means that schools are raising tuition fees faster than inflation. Once the income of the school is insufficient, the school will face the financial deficit, and the subsequent enrollment will become more difficult.
in addition, schools are expanding. According to dodge data & Analytics, over the past four years, American universities have spent an average of $11 billion a year, and classroom and office space alone have increased by nearly 70 million square feet. This does not include sports facilities, dormitories, canteens, libraries or laboratories.
in response, Gordon, a senior executive of the company, said that the expenditure inflation brought about by this rate of expansion has gone far beyond reasonable expectations.
what’s more surprising is that many universities do not make full use of these endowment funds, resulting in poor returns. According to a research report jointly released by MIT and UIUC in May, the higher education fund realized only 6.8% return on investment from 2009 to 2017.
according to the Research Report of TIAA, a financial service institution in universities, 63% of people working in universities will receive medical services after retirement. In other enterprises with more than 200 employees, only 25% of employees can enjoy this treatment. Among the 677 institutions surveyed, school staff also received up to $37000 a year in fee discounts to cover school fees for children and family partners.
AAUP, the American Association of university professors, says that full-time teachers receive an average of 10.7% of their salary in retirement plans. According to the university human resources professional association, two thirds of the presidents, six percent of the dean and three percent of the executive vice presidents receive housing or housing subsidies.
so when universities decide to try to balance their budgets, these huge financial pressures are rarely as obvious as they are now. Georgetown University announced it would suspend retirement plans for employees, saying it would save $47 million next year.
not long ago, the chronicle of higher education reported the latest salary data of presidents of more than 600 private universities and nearly 270 public universities and systems.
the big picture model shows that this vicious circle is the fundamental problem facing higher education in the United States. In the case of the continuous decline in the number of students each year, the expenditure is increasing, and the final income is shrinking. Therefore, problems must arise in the face of economic crisis caused by emergencies.
although it has not reached the critical level, after the baptism of the epidemic, the higher education in the United States is bound to change. How to change it is not a problem we should consider.
obviously, the biggest problem, or the biggest obstacle, is the trump administration. In order to win the election, trump has given up his face and directly and openly suppressed China.
after tiktok, the trump government targeted more Chinese applications. On August 5, local time, U.S. Secretary of state pompeio held a press conference, at which the “net net plan” was proposed, targeting operators, app stores, applications, cloud service systems, and optical cables. I believe that we have already understood about the specific measures, so we will not go into details here.
the purpose of the big picture model is very clear. It is to suppress China in order to win more votes. Trump holds a winning mentality for re-election. As Mary trump wrote in the book, trump has a nearly abnormal narcissism, which does not allow him to fail. In this state, it is likely that there will be more unreasonable requirements and policies in the follow-up, and it will be a headache to think about it.
but no matter what he does, after the election, the storm will subside. The key now is whether American universities and other affected industries can survive these months? Huawei Yu Chengdong: Huawei mate 40 will be released in September, carrying the “out of print” Kirin’s latest 5g chip