Category Archives: Finance

The money that makes academe tick.


Vanderbilt Releases More Information on Elusive Red-Tape Study

Vanderbilt University has released more information about its noted red-tape study, which for months has been trumpeted by some observers as evidence of smothering government regulation in higher education. The Chronicle has repeatedly requested access to the study, which asserts the university spent roughly $150 million to comply with regulations in 2013-14.

The information, released on Friday, takes the form of a fact sheet, a PowerPoint presentation, and a summary that reiterate key points re…


Bergen Community College Cuts 64 Lecturer Positions to Save Money

Bergen Community College has cut 64 full-time lecturer positions in an effort to save money, The Record, a New Jersey newspaper, reports. The college says the move will save $934,000.

The college is asking the 64 lecturers to reapply for their jobs as adjuncts, who are paid $2,100 per course and don’t get benefits. Lecturers at the college, who teach roughly five courses per semester, are each paid a salary of $38,600 plus benefits.

The move follows the college’s decision this month to cut or re…


Moody’s Upgrades Higher Ed’s Outlook From ‘Negative’ to ‘Stable’

Moody’s Investors Service has upgraded its outlook for the higher-education sector from “negative” to “stable,” citing expected increases in state funding and federal research funding. Higher education had been assigned a “negative” outlook since January 2013.

“Our outlook revision to stable reflects our view that aggregate operating revenue growth for four-year colleges and universities will stabilize at a post-recession level of just above 3 percent over the next 12-18 months, providing some p…


Davenport U. Will Cut Campuses Amid Lagging Enrollment

Davenport University, a private college in Michigan, will close some of its campuses as enrollment has lagged in recent years, Michigan Live reports. Some of those campuses will merge with nearby community colleges, the university said.

The university’s president, Richard J. Pappas, told the publication the changes had not been driven solely by financial concerns. “This truly represents a win-win-win situation for the institutions involved and for students,” he said of the changes. “Efficient op…


U. of Akron Will Cut 215 Jobs and Baseball Program to Plug $60-Million Shortfall

The University of Akron will cut more than 200 positions and its baseball program to make up for a $60-million budget shortfall over the next three years, The Plain Dealer reports. The public university’s president, Scott L. Scarborough, announced the measures in a news release on Friday.

“The University of Akron’s future is bright, but first we need to fix its finances,” Mr. Scarborough said in the release.

No faculty positions are among the 215 jobs being cut. The Ohio university will also out…


Colleges’ Balance Sheets Are Looking Better

Colleges both public and private got some moderately good news on Monday, with the release of two reports from Moody’s Investors Service. The annual reports, which focus on the financial health of public and private colleges, respectively, gauge changes between the 2013 ad 2014 fiscal years.

For public colleges:

  • Aggregate state funding increased for the first time in more than 10 years.
  • The average proportion of a college’s operating budget that consists of state funds increased slightly from t…

Deal Is Reached to Keep Sweet Briar College Open Next Year

[Updated (6/21/2015, 9 p.m.) with additional reaction.]

Virginia’s attorney general announced on Saturday that an agreement had been reached to keep Sweet Briar College, which abruptly announced in March that it planned to close this summer, open next year after all.

The announcement of the women’s college’s closure sparked an outcry on and off the campus, as well as a flurry of legal challenges, and raised questions for other small institutions. The agreement announced by the attorney general, …


Preparing for Layoffs, South Carolina State Declares Financial Exigency

South Carolina State University, the historically black institution whose financial woes prompted lawmakers to fire its Board of Trustees, declared financial exigency on Wednesday. WLTX, a television station in Columbia, S.C., reports the university’s interim Board of Trustees voted to make the declaration so it could more easily lay off employees.

“This is just one step we have to take,” said the board’s chairman, Charles Way. “It’s incumbent on us, the board and the school, to terminate, to re…


South Carolina State Will Not Lose Accreditation Over Financial Problems

South Carolina State University will not lose its accreditation as it tries to find solid financial footing, the Southern Association of Colleges and Schools’ Commission on Colleges announced on Thursday. The State, a newspaper in Columbia, S.C., reports that the accreditor has opted to keep the historically black university on probation rather than revoke its accreditation.

In February a panel of state lawmakers recommended that the university be closed for two years, citing millions of dollars…


After Trustees Resign, Cooper Union President Says He Will Step Down

[Updated (6/10/2015, 7:06 p.m.) with news of Mr. Bharucha's departure.]

The embattled president of the Cooper Union for the Advancement of Science and Art, Jamshed Bharucha, will step down at the end of this month, he announced on Wednesday.

The announcement was made on the day after five trustees resigned amid an investigation by the New York State attorney general into the college’s decision to start charging tuition. The resignations were reported by The Wall Street Journal.

“It has been an h…