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Short-Term Focus, Long-Term Problems: Survey of College and University Business Officers

“While college and university business officers are still surprisingly upbeat about their institutions’ financial health and the viability of their institutions’ business models, they are taking steps to alter these models – cutting in some areas and seeking new revenues in others – in a way that reflects a more privatized and market-oriented approach than before. That is one way to interpret Inside Higher Ed’s second Survey of College and University Business Officers. In responding to the survey, business administrators expressed a clear concern about pricing, with about 70 percent of survey respondents saying that increasing net tuition revenue — the actual amount they derive per enrolled student after factoring in institutional financial aid – was an important strategy for raising revenue in the near term (more than chose any other strategy). On top of that, online education, collaboration with other campuses, streamlining administrative positions or reorganizing administrative units, and eliminating underperforming programs were, in aggregate across all types of institutions, the strategies in which CFOs were most likely to report that their institutions were engaging.”

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