Wednesday, October 22, 2008

Colleges and Universities Getting Smart During Budget Cuts

October 22, 2008- Just this past week, the Center on Budget and Policy Priorities in Washington reported that “21 states were expecting budget shortfalls totaling nearly $9 billion for the fiscal year” according to The Chronicle of Higher Education, “Fresh Rounds of State Budget Cuts Hits Higher Education”, October 21. With 21 states making cuts already, this is just the beginning as the credit crunch makes a direct impact on higher education. The warnings have already been issued…

  • Massachusetts – Governor Deval Patrick announced 5.6% cut

  • Pennsylvania- Governor Edward Rendell announced 4.25% cut

  • Virginia- Governor Timothy Caine announced 5-7% cut

  • Ask any leader at a public institution. They’re bracing for program cuts, project and hiring freezes. Unfortunately, they are at the mercy of a national economic crisis. In fact, according to The Chronicle of Higher Education, the Nelson A. Rockefeller Institute of Government, the public-policy research arm of the State University of New York, “warns that tax collections in many states could fall even further this year, making a bad fiscal situation even worse for much of the nation”. The problem is not going away soon.

    Progressive college officials are doing their homework and finding ways to cut costs, with as little impact on students as possible. Over 270 colleges in our network are doing what they can in admissions and enrollment to eliminate waste, streamline inefficiencies, and adopt a more cost-effective way to do business. For large colleges that spend up to $25 processing transcripts in the admissions process, they are seeking solutions such as ConnectEDU to remove this expense and inefficiency. For colleges who spend up to $4,000 per student in the recruitment process, they are looking for more cost-effective methods to identify and engage prospective students by working with solutions such as Connect!.

    Colleges are finding themselves in a perfect storm of a tightening credit crunch, short-falls in family funding options, shrinking endowment and financial aid resources as the markets drop, depleted state and federal funds due to a declining tax base, and a shrinking 18yr old population as we come off of the Baby Boom Echo. Never before have colleges needed to be more prudent and efficient with their internal processes and procedures. ConnectEDU stands ready to assist our college partners, students and high schools that make up the ConnectEDU National Network™.

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