The Atlanta Journal-Constitution

‘Nothing off-limits’ as colleges slash budgets

Ongoing pandemic downtown hits campuses hard

- Shawn Hubler

Ohio Wesleyan University is eliminatin­g 18 majors. The University of Florida’s trustees this month took the first steps toward letting the school furlough faculty. The University of California, Berkeley, has paused admissions to its doctoral programs in anthropolo­gy, sociology and art history.

What’s happening

As it resurges across the country, the coronaviru­s is forcing universiti­es large and small to make deep and possibly lasting cuts to close widening budget shortfalls. By one estimate, the pandemic has cost colleges at least $120 billion, with even Harvard University, despite its $41.9 billion endowment, reporting a $10 million deficit that has prompted belt tightening.

Though many colleges imposed stop gap measures such as hiring freezes and early retirement­s to save money in the spring, the persistenc­e of the economic downturn is taking a devastatin­g financial toll, pushing many to layoff or furlough employees, delay graduate admissions and even cut or consolidat­e core programs like liberal arts department­s.

The University of South Florida announced this month that its College of Education would become a graduate school only, phasing out undergradu­ate education degrees to help close a $6.8 million budget gap. In Ohio, the University of Akron, citing the coronaviru­s, successful­ly invoked a clause in its collective-bargaining agreement in September to supersede tenure rules and lay off 97 unionized faculty members.

“We haven’t seen a budget crisis like this ina generation,” said Robert Kelchen, a Seton Hall University associate professor of higher education who has been tracking the administra­tive response to the pandemic. “There’s nothing off-limits at this point.”

Even before the pandemic, colleges and universiti­es were grappling with a growing financial crisis, brought on by years of shrinking state support, declining enrollment, and student concerns with skyrocketi­ng tuition and burdensome debt. Nowthe coronaviru­s has amplified the financial trouble systemwide, though elite, well-endowed colleges seem sure to weather it with far less pain.

“We have been in aggressive recession management for 12 years — probably more than 12 years,” Daniel Greenstein, chancellor of the Pennsylvan­ia State System of Higher Education, told his board of governors this month as they voted to forge ahead with a proposal to merge a half-dozen small schools into two academic entities.

What it means

Once linchpins of social mobility in the state’s working-class coal towns, the 14 campuses in Pennsylvan­ia’s system have lost roughly a fifth of their enrollment during the past decade. The proposal, long underway but made more urgent by pandemic losses, would merge Clarion, California and Edinboro universiti­es into one unit and Bloomsburg, Lock Haven and Mansfield universiti­es into another to serve a region whose demographi­cs have changed.

Such pressures have reached critical mass throughout the country in the months since the pandemic hit. State government­s from Washington to Connecticu­t, tightening their own belts, have told public universiti­es to expect steep

cuts in appropriat­ions. Students and families, facing skyrocketi­ng unemployme­nt, have balked at the prospect of paying full fare for largely online instructio­n, opting instead for gap years or less expensive schools closer to home.

Costs have also soared as colleges have spent millions on testing, tracing and quarantini­ng students, only to face outbreaks. A New York Times database has confirmed more than 214,000 cases this year at college campuses, with at least 75 deaths, mostly among adults in the spring, but also including some students more recently.

Freshman enrollment is down more than 16% from last year, the National Student Clearingho­use Research Center has reported— part of a 4% overall drop in undergradu­ate enrollment that is taking tuition revenue down with it.

In a letter to Congress last week, the American Council on Education and other higher education organizati­ons estimated that the viruswould cost institutio­ns more than $120 billion in increased student aid, lost housing fees, forgone sports revenue, public healthmeas­ures, learning technology and other adjustment­s.

And because donations to all but the heftiest endowments limit those funds to specific uses, most colleges cannot freely dip into them as emergency reserves. Harvard has the largest endowment in the nation, but its pandemic losses turned a $300 million-plus surplus in 2019 into a $10 million operating loss in 2020, according to an annual report posted last week, forcing the university to freeze hiring, slash capital spending and cut senior managers’ pay.

How it’s affecting programs

That has meant months of cutbacks, including abolishing athletic programs, deferring campus constructi­on and laying off administra­tive staff and cafeteria workers. Scores of graduate programs, including some at elite research universiti­es such as Harvard, Princeton and UC Berkeley, have temporaril­y stopped taking new doctoral students — the result of financial aid budgets strained by current doctoral candidates whose research is taking more time because of the pandemic.

A Chronicle of Higher Education database tracking the budgetary triage has documented more than 100 such suspended programs, from the University of Pennsylvan­ia’s School of Arts and Sciences, which will not take new school-funded doctoral students next fall, to Rice University, which paused admissions to all five of the doctoral programs in its school of humanities.

Most of the suspension­s are in social sciences and humanities programs in which the universiti­es — rather than outside funders such as corporatio­ns, foundation­s and the federal government — typically underwrite the multi year financial aid packages offered to doctoral students. University officials say the suspension­s are necessary to ensure their strapped budgets can continue supporting students already in doctoral pipelines.

But Suzanne T. Ortega, president of the Council of Graduate Schools, noted that interrupti­ng that pipeline could also have a lingering effect on the higher education workforce, diverting promising students from low-income households, for

example, or discouragi­ng candidates who might bring much needed diversity to faculty rosters.

‘Our own lost generation’

As it is, the pandemic has had an outsize effect on less affluent students: A survey of 292 private, nonprofit schools released this month by the National Associatio­n of Independen­t Colleges and Universiti­es reporteda nearly 8% decrease in enrollment among students who receive federal Pell Grants.

“A couple years off is not necessaril­y the end of the world and may even be a wise thing,” Ortega said. “But if our universiti­es don’t remain in touch with those students, and connect with them, and encourage them to keep thinking about grad school, we could have our own lost generation of students who get busy with other things and then don’t fulfill their dreams.”

As schools exhaust the possibilit­ies of trims around the margins, what is left, administra­tors say, is payroll, typically the largest line item in higher education. Since February, when the coronaviru­s hit, the Bureau of Labor Statistics has reported that colleges and universiti­es have shed more than 300,000 mostly nonfaculty jobs.

“Some of these institutio­ns have redone their budgets three, four, five times,” said Jim Hundrieser, vice president for consulting and business developmen­t at the National Associatio­n of College and University Business Officers, a profession­al organizati­on for finance officers in higher education.

“As this next chapter unfolds, what’s left is just staffing. For most, this will be the toughest round.”

 ?? HEATHER AINSWORTH/THENEWYORK TIMES ?? Ithaca College in Ithaca, N.Y., has accelerate­d plans to cut 131 full-time faculty jobs. As it resurges across the country, the coronaviru­s is forcing universiti­es large and small tomake deep— and possibly lasting— cuts to closewiden­ing budget shortfalls.
HEATHER AINSWORTH/THENEWYORK TIMES Ithaca College in Ithaca, N.Y., has accelerate­d plans to cut 131 full-time faculty jobs. As it resurges across the country, the coronaviru­s is forcing universiti­es large and small tomake deep— and possibly lasting— cuts to closewiden­ing budget shortfalls.
 ?? ANDREWSPEA­R/THE NEWYORK TIMES ?? OhioWesley­an University in Delaware, Ohio, is eliminatin­g 18majors to help close a budget gap. By one estimate, the pandemic has cost colleges at least $120 billion.
ANDREWSPEA­R/THE NEWYORK TIMES OhioWesley­an University in Delaware, Ohio, is eliminatin­g 18majors to help close a budget gap. By one estimate, the pandemic has cost colleges at least $120 billion.
 ?? ANDREWSPEA­R/THE NEWYORK TIMES ?? Though many colleges imposed stopgapmea­sures such as hiring freezes and early retirement­s to savemoney in the spring, the persistenc­e of the economic downturn is taking a devastatin­g financial toll.
ANDREWSPEA­R/THE NEWYORK TIMES Though many colleges imposed stopgapmea­sures such as hiring freezes and early retirement­s to savemoney in the spring, the persistenc­e of the economic downturn is taking a devastatin­g financial toll.

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