By Rebecca Dell
In response to state budget cuts, public higher education institutions have to find creative ways like premium graduate programs to bolster their budgets while keeping the public education mission alive.
For example, George Mason University in Fairfax, Va., is working on specialized graduate-level programs that will bring in a profit to the university, said Provost Peter Stearns. These programs will be designed for professional enhancement.
Mason already opened an on-campus hotel in 2010, with two-fold benefits: the space for on-campus conferences and speaker hosting, and the opportunity to raise funds from outside of the student body.
These are examples of institutions reacting to budget cuts by acting more like a private schools, said Stearns. In fact, Georgetown and George Washington, said Stearns, are making similar strides toward behaving like businesses.
There is always the option of raising tuition to make up for a gap between costs and funds.
"Many institutions must shift the cost to the students. If the costs have to be made up in the academic areas of the institution, it can lead to larger classes (and lower class availability), and lower support for faculty research," said Andrew Flagel, George Mason University Associate Vice President for Enrollment Development and Dean of Admissions.
The lack of funding can have devastating effects on schools. Virginia Commonwealth University faces larger reductions than any other 4-year Virginia state institution between now and 2012, according to VCU.
"VCU cannot sustain its core mission as a major research university focused on student learning at current revenue levels, let alone reduced levels. The consequences of not raising tuition, or even a small tuition increase, are profound," VCU says.
As schools turn increasingly to business solutions, complete privatization of state universities is not necessarily an option. For Mason, the cost would be too high.
"For an institution like Mason right now to go private would be foolish, because we don't have the philanthropy base," Stearns said. "We would lose 25% of our operating budget."
Stearns also said that if such a drastic change were to happen, some financial aid for in-state students would be lost. Another consequence would be the loss of building funding—academic buildings are largely funded by state bonds. For example, $60 million of Mason's new engineering building was paid for by the state.
Rebecca Dell can be reached at becca_2@myfairpoint.net
For more information:
Out-of-State Students a Boon to Universities by Rebecca Dell