JHU's Misstep is not Reality
Let’s agree on one thing- headlines are designed solely to get you to read the rest of the story. Recently in the Chronicles of Higher Education, an article captured my attention. It was titled, The Era of Artificial Scarcity, The subtitle, “ Administrators have rushed to embrace austerity measures. The faculty should call their bluff”, was provocative. I took the leap and dove in.
This story is about the mobilization of the faculty of Johns Hopkins University against the austerity measures proposed by the University one year ago, during the early months of the pandemic. The administration proposed layoffs, salary freezes, and suspended contributions to employee retirement pension plans. This galvanized the faculty into demanding a forensic audit of the school’s finances. Obviously for a school with 2 Billion, yes that is a B, in financial reserves, this was going to be interesting. The article gleefully reported the faculty “ David” had killed the “corporate-driven” administration/board of trustees “Goliath” with this singular stone throw of a simple $5,000 audit. Unsurprisingly, the audit revealed massive financial reserves and outdated investment strategies in the employee retirement fund. Admittedly, that is an egg on the face of the institution.
The authors made their point. Sadly, the article implied that ALL “budget -tightening” was just an excuse by a “slash & burn” administration and board of trustees at every college & university. I concede they had a point with their target institution, Johns Hopkins University. But few higher education institutions are sitting on a 2 Billion dollar reserve, either. The reality for most institutions is nowhere close to this story.
Let’s keep in mind a few facts that will alter Higher Education going forward;
Declining numbers of traditionally available students. I keep repeating this demographic, but it is true. If fewer students are out there, enrollments decline. That results in unneeded professors, administrators, and support staff.
Plentiful job options are competing with higher education. Entry-level positions are available everywhere, and next-level is hurting, too. While at a big box home improvement store, a junior manager was helping me check out. She took two phone calls of employees calling in to be “out” for the day. You could tell they were already short-handed. If you want or need to work, you can find it!
Full tuition-paying foreign students are not available. These students were incredibly financially valuable. They helped lower costs for other students. And, they filled empty seats from the decline in attendance in US-based students. I am not sure if or when they will return to the USA. I am certain the loss of their tuition will have a real impact on the industry.
Most private colleges don’t have Johns Hopkins or Harvard-level endowments. So the above story, while likely accurate concerning this ONE situation, should not be held as a common example across the board. In fact, it should be seen as a 1 in 3,500 exception. That’s the rough total number of colleges and universities in the United States.
The truth is the pandemic has become a magnifying glass on the whole higher education system. How institutions handle the scramble for students, price their offerings, and reshape their programs will make or break quite a few. Instead of fighting against all change, the faculty would be wise to review demographics, partner with administration, and actually engage in recruitment and retention. That will do more to save positions at all levels than anything else.
I do believe this truth. Higher Education MUST alter its programs and plans to survive or even thrive. Any institution that does not plan forward will collapse. Start studying the successful institutions and make haste in the direction of growth.
Good advice for us all.
High school sophomores & juniors don’t normally get presents before graduation time. You may want to make an exception. My book, ENOUGH! The College Cost Crisis, is a life-changing, information-packed easy read. It may be the best present a family could get for under $20 dollars. The book also provides a link to download a free pdf workbook for each chapter. This gives you a process to work with your student for their future education needs.
Next week, I step into the quagmire of elite college Admissions. I promise you the truth, and it will make you feel a whole lot better!
Until next time,
All my best,
Bonnie Burkett
