Economic Issues on Campus:Where Do We Go from Here?

CUPA-HR Economic Issues Task ForceSpring 2011

CUPA-HR Economic Issues Task Force• Lynn Bynum Amy King• Mark Caldron Kelly Jones• Ricardo Coronado Kay McFarlin• Deborah Fillmore Ken Tagawa

Task Force Conclusions

• The economic issues facing higher education are far from over – extending beyond 2014

• Financial outlook for public institutions is more negative than for private institutions

• The traditional higher education model is unsustainable

• Employees at public and private institutions remain engaged – at least for now

Do you believe the worst financial/budget issues for your institution are over?

A. B.

0%0%

A. YesB. No

10

If no, when do you expect these issues to end?

A. B. C. D.

0% 0%0%0%

A. 2011B. 2012C. 2013D. 2014 and

beyond

:10

The Bad News

• Over two-thirds of all colleges do not believe the worst of the financial crisis is over

• Slightly more than half believe the financial crisis will not end until 2014 or later

Strategies for Loss of Stimulus Funds

Top 3 Strategies:• Budget cuts/improved efficiencies• Increased revenues (tuition, fees, donors)• Reassessment/consolidation of academic

programs

What was your institution’s budget cut for FY2011-12?

A. B. C. D.

0% 0%0%0%

A. 0%

B. 1-4%

C. 5-10%

D. > 10%

10Seconds

Remaining

Budget Cuts During 2011-12

Budget Cut Impact on HR

• 16% - Zero cuts to HR budget• 48% - 1% to 5% cut to HR Budget• 23% - >5% and up to 10% cut to HR budget• 13% - 10% or greater cut to the HR budget

Top 10 Institutional Strategies to Help with Budget Cuts

1. Delayed Hiring (78%)2. Wage Freeze (71.4%)3. Increased Student Enrollment (50.5%)4. Programs Consolidated/Reorganized (40.7%)5. Voluntary Separation Program (23.1%)6. Involuntary Separation Program (23.1%)7. Reduced Benefits (18.7%)8. Unpaid Furloughs (13.2%)9. Reduced Percent of Time of Appointments (7.7%)10. Various non-specific (23.1%)

Top 10 HR Functions Cut 1. Employment 28.9% 2. Benefits 26.7% 3. Training 26.5% 4. Recruitment/Selection 24.4% 5.Classification/Compensation 21.5% 6. Payroll 15.4% 7. Academic Personnel 12.6% 8. HRIS 6.3% 9. Employee/Labor Relations 4.4% 10. Diversity/EEO 3.4%

The Good News36% of Institutions Reported Planning Salary

Increase

44% of Institutions Not Decided or Don’t Know

Only 20% of Institutions Not Planning Salary Increase

The Good News Of Those Institutions Reported Planning a Salary

Increase (by Affiliation)

• Private for-Profit 60% • Private Independent 46% • Private Religious 59% • Public 20%

Percent of Salary Increase Planned

• 1% to 2% Increase 14% of Institutions• 2% to 3% Increase 31% of Institutions• 3% to 4% Increase 41% of Institutions• 4% to 5% Increase 14% of Institutions

The Good NewsMedian Base Salary Increasefrom 2009-10 to 2010-11*

Difficulty in Filling Positions and Retaining Employees

• 85% Reported No Difficulty in Filling Positions

• 87% Reported No Difficulty in Retaining Employees

How would you rate employee engagement?

A. B. C. D. E.

0% 0% 0%0%0%

A. Very engagedB. EngagedC. RoutineD. Disengaged E. Very disengaged

Employee Engagement & Outlook

Engagement• Faculty – 94% engaged or routine • Staff – 92% engaged or routine

Outlook• Faculty – 58% cautious 28% optimistic• Staff – 60% cautious 14% optimistic

Three Top Effective Strategies Used to Communicate Information

1. Face-to-Face Meetings 36%2. Presidential Communications 25%3. Electronic 18%

--includes e-mail, website, social media

The Good News – HR Functions Expanded

1. Academic Personnel 22.6%2. HRIS 21.3%3. Training 14.8%4. Employment 13.9%5. Classification/ Compensation 11.7%6. Benefits 11.5%7. Selection/Recruitment 11.3%8. Payroll 10.5%9. Diversity/EEO 9.5%10. Employee/Labor Relations 8.8%

Top 10 - Presidents’ Strategies to Address Financial Issues

1. Cut administrative operations & Services2. Increase tuition by 5%3. Cut selected academic programs & activities4. Freeze hiring for administrative positions5. Expand online education6. Increase part-time faculty7. Create new self-sustaining programs8. Launch/expand partnerships with other inst.9. Raise student fees for campus services10. Change benefit levels in health, retirement, etc.

2011 Inside Higher Education Survey of College & University Presidents

What are the three most important issues facing your institution over the next 2-3 years?

A. B. C. D. E.

0% 0% 0%0%0%

A. Budget shortfallsB. Changes in state

supportC. Rising

tuition/affordabilityD. Increased

competition for students

E. Maintaining quality of academic programs

Three Most Important Issues in the Next Two-Three Years – Public Institutions

(Presidents Survey Inside Higher Ed – March 2011)_________________________________________________

1. Budget Shortfalls2. Changes in State Support3. Remediation/Student Readiness

Doctoral Universities Master’s Institutions Baccalaureate Institutions

Community Colleges

Budget shortfalls – 57.6%

Budget shortfalls – 58.7%

Budget shortfalls – 56.9%

Budget shortfalls – 64.5%

Changes in state support – 62.5%

Changes in state support – 54.8%

Changes in state support – 39.2%

Changes in state support – 37.9%

Maintaining qualityof academic programs – 28.8%

Maintaining the quality of academicprograms– 24%

TIE: Rising tuition/affordability and Maintainingquality of academic programs – 17.6%

Remediation and student readiness for College – 27.2%

Rising tuition / affordability – 16.9%

Rising tuition / affordability - 24%

Increased competition for students – 13.7

Limits on our ability to respond to risingenrollments/increased demand – 20.4%

Potential cuts in federal research support – 16.3%

TIE: Increased competition for students andStudent assessment/ institutional outcomes – 13.7%

Student assessment / institutionaloutcomes – 13.7%

Rising tuition / affordability – 15.1%

2011 Inside Higher Education Survey of College & University Presidents

Three Most Important Issues in the Next Two-Three Years – Private Institutions

(Presidents Survey Inside Higher Ed – March 2011)_________________________________________________

1. Rising tuition/affordability2. Competition for students3. Budget shortfalls

Doctoral Universities Master’s Institutions Baccalaureate Institutions

Associate Institutions

Rising tuition / affordability – 41.4%

Rising tuition / affordability – 45.4%

Rising tuition / affordability – 40.5%

Rising tuition / affordability – 42.1%

Budget shortfalls – 34.5%

Increased competition for students – 38.9%

Increased competition for students – 36.9%

TIE: Budget shortfalls and Increasedcompetition for students – 31.6%

Potential cuts in federalresearch support – 20.7%

Budget shortfalls – 29.6%

Budget shortfalls – 33.3%

Potential cuts in federalstudent aid programs – 21.1%

Maintaining the qualityof academic programs – 17.2%

Potential cuts in federalstudent aid programs – 18.5%

Potential cuts in statestudent aid programs – 26.2%

Limits on our ability to respondto rising enrollments/increased demand – 15.8%

Potential cuts in statefinancial aid programs – 16.7%

Potential cuts in statestudent aid programs – 12.3%

Financial support from alumni – 17.9% 2011 Inside Higher Education

Survey of College & University Presidents

Questions?