College business officers see bleak financial outlook

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College financial leaders are losing faith in their schools’ long-term economic outlook, and nearly half of those on public campuses expect things to worsen next year, a survey has found.

The trade publication Inside Higher Ed and Hanover Research surveyed 219 chief business officers at public, private nonprofit and for-profit campuses. Officials planned to present the results of the annual poll Sunday at the annual meeting of the National Association of College and University Business Officers.

The findings confirm that “the uncertain economy of the past year” has generated a “downbeat outlook” for more colleges and universities, said Liz Clark, the association’s vice president of research and policy analysis. Confidence was lowest among CBOs from regional public institutions, with just 36% expressing faith in their schools’ financial stability over the next 10 years. That’s down sharply from 75% who said the same in 2021, Inside Higher Ed reported.

The survey comes as falling birth rates and rising costs dry up the college application pipeline in some regions. State and local government funding for higher education totaled $120.7 billion, including more than $2.5 billion in federal stimulus funding. Among public schools, two-year institutions received $55 per student and four-year institutions $169 per student in federal stimulus money.

State public financial aid increased by 2% from 2021 to 2022, hitting an all-time high of $990 per enrolled student, according to the association. Among CBOs surveyed, 36% say their institution is either “very” or “somewhat” likely to merge academic programs with another institution within five years, and 48% say they will likely share administrative functions.

• 25% say their institution should consider merging with another institution in the next five years, including 40% of CBOs in the Northeast.

 

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