Desperate Times, Desperate Measures: How Five State Schools are Managing in Spite of Declining State Appropriations Susana...
Our Study <ul><li>These five states had the  </li></ul><ul><li>largest decrease in state  </li></ul><ul><li>appropriations...
Who we Interviewed <ul><li>David Feldman  – Professor of Economics, College of William & Mary </li></ul><ul><li>Ken Corber...
Research Question & POV <ul><li>If the trend of decreasing state appropriations continues, will these institutions be able...
South Carolina <ul><li>In 2006 ranked 45 th  (out of 50) for having the largest 5-year decline in state appropriations </l...
University of South Carolina – Columbia  State Appropriations vs. Tuition & Fees
University of South Carolina – Columbia Revenue Sources: FY2006
Virginia <ul><li>In 2006 ranked 36 th  (out of 50) for having the largest 5-year decline in state appropriations </li></ul...
UVA State Appropriations vs. Tuition & Fees
UVA  Revenue Sources: FY2006
Missouri <ul><li>In 2006 ranked 44 th  (out of 50) for having the largest 5-year decline in state appropriations </li></ul...
University of Missouri – Columbia    State Appropriations vs. Tuition & Fees
University of Missouri – Columbia Revenue Sources: FY2006 TOTAL OPERATIONS:  $473,677,682
History of State Appropriations $213,613,454 $171,642,229 2006 $206,275,390 $169,851,517 2005 $199,385,189 $168,343,755 20...
Colorado <ul><li>In 2006 ranked 47 th  (out of 50) for having the largest 5-year decline in state appropriations </li></ul...
University of Colorado – Boulder    State Appropriations vs. Tuition & Fees
University of Colorado – Boulder Revenue Sources: FY2006
Oregon <ul><li>In 2006 ranked 36 th  (out of 50) for having the largest 5-year decline in state appropriations </li></ul><...
University of Oregon – Eugene   State Appropriations vs. Tuition & Fees
University of Oregon – Eugene Revenue Sources: FY2006
Conclusion <ul><li>Colleges searching for new sources of revenue </li></ul><ul><li>Competing for scarce resources with oth...
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Desperate Times, Desperate Measures

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A presentation I did in grad school that examined a case study on how five public colleges are coping with decreased state appropriations.

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Desperate Times, Desperate Measures

  1. 1. Desperate Times, Desperate Measures: How Five State Schools are Managing in Spite of Declining State Appropriations Susana Torres, Adam Kindschy, & Mark Litwa ELPS 454: Budgeting & Finance December 11, 2006
  2. 2. Our Study <ul><li>These five states had the </li></ul><ul><li>largest decrease in state </li></ul><ul><li>appropriations per FTE from the </li></ul><ul><li>period 2001-2003 </li></ul><ul><li>Virginia (-21%) </li></ul><ul><li>South Carolina (-27%) </li></ul><ul><li>Missouri (-23%) </li></ul><ul><li>Colorado (-22%) </li></ul><ul><li>Oregon (-27%) </li></ul>
  3. 3. Who we Interviewed <ul><li>David Feldman – Professor of Economics, College of William & Mary </li></ul><ul><li>Ken Corbertt – Finance Projects Specialist, University of South Carolina at Columbia </li></ul><ul><li>Tim Rooney – Director of Budgeting, University of Missouri at Colombia </li></ul><ul><li>Cathy Kerry – Office of Planning, Budget & Analysis, University of Colorado at Boulder </li></ul><ul><li>Jay Kenton – Vice Chancellor for Finance and Administration, Oregon University System </li></ul>
  4. 4. Research Question & POV <ul><li>If the trend of decreasing state appropriations continues, will these institutions be able to survive without implementing excessive tuition increases? </li></ul><ul><li>Our Point of View : They will not be able to survive without implementing significant tuition increases, effectively shifting the burden of cost from public aid to students and their families. </li></ul>
  5. 5. South Carolina <ul><li>In 2006 ranked 45 th (out of 50) for having the largest 5-year decline in state appropriations </li></ul><ul><li>13 public colleges and universities </li></ul><ul><li>Flagship Institution: </li></ul><ul><ul><li>University of South Carolina at Columbia </li></ul></ul>
  6. 6. University of South Carolina – Columbia State Appropriations vs. Tuition & Fees
  7. 7. University of South Carolina – Columbia Revenue Sources: FY2006
  8. 8. Virginia <ul><li>In 2006 ranked 36 th (out of 50) for having the largest 5-year decline in state appropriations </li></ul><ul><li>16 public colleges and universities </li></ul><ul><li>Flagship Institutions: </li></ul><ul><ul><li>UVA </li></ul></ul><ul><ul><li>Virginia Tech </li></ul></ul><ul><ul><li>College of William & Mary </li></ul></ul><ul><li>Restructured Higher Education Financial and Administrative Operations Act 2005 </li></ul>
  9. 9. UVA State Appropriations vs. Tuition & Fees
  10. 10. UVA Revenue Sources: FY2006
  11. 11. Missouri <ul><li>In 2006 ranked 44 th (out of 50) for having the largest 5-year decline in state appropriations </li></ul><ul><li>4 public colleges and universities </li></ul><ul><li>Flagship institution: </li></ul><ul><ul><li>University of Missouri at Columbia (Mizzou) </li></ul></ul><ul><li>In 2001, tuition & fees made up just 18.7% of total revenue; in 2006 they made up 45.9% </li></ul>
  12. 12. University of Missouri – Columbia State Appropriations vs. Tuition & Fees
  13. 13. University of Missouri – Columbia Revenue Sources: FY2006 TOTAL OPERATIONS: $473,677,682
  14. 14. History of State Appropriations $213,613,454 $171,642,229 2006 $206,275,390 $169,851,517 2005 $199,385,189 $168,343,755 2004 $190,514,056 $173,956,983 2003 $185,174,150 $169,428,258 2002 $177,853,311 $193,016,221 2001 Approp. Needed to Keep up with Inflation Actual Approp. Received
  15. 15. Colorado <ul><li>In 2006 ranked 47 th (out of 50) for having the largest 5-year decline in state appropriations </li></ul><ul><li>Low appropriations before the recession </li></ul><ul><li>Little chance of privatization </li></ul><ul><li>Grants, contracts, and gifts </li></ul>
  16. 16. University of Colorado – Boulder State Appropriations vs. Tuition & Fees
  17. 17. University of Colorado – Boulder Revenue Sources: FY2006
  18. 18. Oregon <ul><li>In 2006 ranked 36 th (out of 50) for having the largest 5-year decline in state appropriations </li></ul><ul><li>State aid made up 60% of budget in 1993; today it’s only 39% </li></ul><ul><li>Lowest levels of state financial aid in the nation </li></ul><ul><li>Chance of privatization </li></ul><ul><li>Jay Kenton’s experience </li></ul><ul><li>Entrepreneurial success </li></ul>
  19. 19. University of Oregon – Eugene State Appropriations vs. Tuition & Fees
  20. 20. University of Oregon – Eugene Revenue Sources: FY2006
  21. 21. Conclusion <ul><li>Colleges searching for new sources of revenue </li></ul><ul><li>Competing for scarce resources with other worthy causes </li></ul><ul><li>Significant tuition increases currently unavoidable </li></ul>
  22. 22. References
  23. 23. Questions?

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