Category Archives: Finance

The money that makes academe tick.

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Judge Rules Kentucky Governor Can Unilaterally Cut University Budgets

A state judge has ruled that Gov. Matthew G. Bevin of Kentucky can cut the budgets of public colleges and universities without the state legislature’s approval, the Lexington Herald-Leader reported.

Two state laws let Governor Bevin, a Republican, trim state funds for the public institutions, according to the ruling, by Judge Thomas D. Wingate of the Franklin County Circuit Court. Although Mr. Bevin’s powers are limited, Judge Wingate said, the state legislature gave him the budget-cutting power…

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Facing Budget Cuts, Kentucky Community College System Lays Off 45 Faculty Members

The Kentucky Community and Technical College system has trimmed more than 500 positions, including those of 45 faculty and 125 staff members who were laid off, the Lexington Herald-Leader reported on Wednesday.

The system faced a $26-million shortfall this year from repeated state budget cuts and declining enrollment. Earlier this month, the system’s president, Jay Box, warned of looming reductions in spending.

To offset the cuts, colleges across the system have eliminated 191 faculty positions …

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Burlington College Will Close, Citing Longstanding Financial Woes

[Last updated (5/16/2016, 2:38 p.m.) with additional information.]

Citing financial problems, Burlington College announced on Monday that it would close its academic programs on May 27, the Burlington Free Press reports.

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The chairman of Burlington College’s board describes attempts to save the college. See a Chronicle interview.

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In a statement quoted by Vermont Public Radio, the college’s dean of operations and advancement, Coralee A. Holm, said the institution had “struggled under t…

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Private Colleges’ Tuition-Discount Rate Hits All-Time High

Private colleges’ discount rate — or the average amount of tuition revenue they devote to financial aid through grants — has again reached an all-time high. That’s according to an annual survey by the National Association of College and University Business Officers, which doesn’t paint a pretty financial picture for the institutions.

The discount rate for first-time, full-time freshmen reached a projected 48.6 percent in the 2015-16 academic year, up from 47.1 percent the previous year. For all …

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For Her Last 18 Months at Harvard, Endowment Chief Got $13.8 Million

Harvard University’s former investment chief was paid $13.8 million for her last 18 months of work before leaving the job, in 2014, Bloomberg reported on Friday.

Jane Mendillo ran the Harvard Management Company for more than six years. Harvard’s $37-billion endowment, the largest of any university, allows it to be generous in paying its investment staffers. In 2014 its six top endowment managers received a combined $50 million.

Colleges with large endowments have faced federal scrutiny for their…

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Nevada Higher-Education Chancellor Resigns After Email Scandal

The chancellor of the Nevada System of Higher Education, Daniel J. Klaich, resigned at the Board of Regents’ meeting on Thursday, the Las Vegas Review-Journal reports.

Mr. Klaich, who led the body that oversees the state’s public colleges and universities, had recently drawn scrutiny after Review-Journal articles revealed he knowingly misled lawmakers on college-funding matters.

According to emails, the system created a false document for a legislative committee studying equitable college financ…

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Student Reporter Interviews Obama. First Question? The Fafsa.

When President Obama made a surprise appearance in the White House’s Briefing Room on College Reporter Day, on April 28, he probably didn’t expect one of the student journalists there to ask him for more access. But Dan Corey, editor in chief of Rutgers University’s student newspaper, The Daily Targum, did just that.

And on Monday, Mr. Corey landed an interview with the commander in chief, who will speak on Sunday at the institution’s commencement, in New Brunswick, N.J.

In the 15-minute teleph…

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U. of Akron’s Financial Outlook Is Downgraded to ‘Negative’ by Moody’s

The University of Akron’s financial outlook has been downgraded from a “stable” to a “negative” rating by Moody’s Investors Service, The Plain Dealer reported on Wednesday. The credit-rating agency cited enrollment declines and high debt and pension burdens in changing the university’s outlook.

In a campus email, the university said that it was thankful for an overall A1 bond rating issued by Moody’s, and that it was working to increase enrollment and retention to improve its financial outlook.

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Chicago State U. Lays Off One-Third of Staff

Emergency funds approved last week by Illinois lawmakers after public colleges had gone almost the whole academic year without state money did not avert layoffs at Chicago State University, which let go more than 300 employees on Friday, the Chicago Tribune reported. That number represents one-third of the university’s staff. No faculty positions were affected — in this round of cuts, Chicago State’s president, Thomas J. Calhoun Jr., told the Tribune.

Illinois’s state-budget impasse has hit Chi…

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U. of New Hampshire Concedes It Shouldn’t Have Bought $17,000 Table

Its flashing LED-light display may make it look like a dance floor, but the University of New Hampshire’s flashy dining table is for culinary purposes only.

Still, that hasn’t stopped critics from walking all over the university’s $17,570 table, which it bought so dining-hall workers could showcase healthy cooking tips to students, The Boston Globe reported on Friday. It turns out that diners weren’t paying as much attention to the slicing and dicing as they were to the table itself.

Its price t…