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Today's Economy and the Today's Economy and the Reinvention of Higher Reinvention of Higher

Education: Leadership and Education: Leadership and StewardshipStewardship

New Hampshire Women in New Hampshire Women in Higher Education LeadershipHigher Education Leadership

Spring ConferenceSpring Conference

Helen Giles-GeeHelen Giles-GeeApril 17, 2009April 17, 2009

Overview

Today’s Economy Economic Issues for Higher Education Principles Meta-analysis of Budget Strategies Experiences Needed Reinvention of Higher Education

Selected Factors Affecting the Economy

Record mortgage failures Significant losses in banking, business,

and industries Deep declines in bonds, equities and

thus endowments Increased unemployment Decreased consumer trust and spending

All Sectors of Higher Education Affected

Private Higher Education– Ivy League– Religious

Public Higher Education– Two-year– Four-year

Public 4-year Revenue SourcesPublic 4-year Revenue Sources(not including capital (not including capital additions/deductions)additions/deductions)

Major Budget Objects

60%

7%

8%

12%

8%1%4%

Salaries, Wages & fringe

Net recoveries-Allocations

Utilities

Support and CapitalEquip

Financial Aid

Library Acquisitions

Transfer, incl R&R

Meta-Analysis of Economic Strategies

Personnel Budget Reductions Capital Projects Enrollment Cost Containment Revenue Development Merger/Acquisition/Closing

Table 1: Actions Used or Will Use re: Staffing and Compensation-CUPA 2/09 (N>304)

Executive Staffing– Hiring freeze 29.5%– Delayed Hiring 36.4%

Executive Salaries– Overall reduction in increase pool

percentage 19.9%– Wage freeze 25.2%

Table 1: Actions Used or Will Use re: Staffing and Compensation-CUPA 2/09 (N>304)

Exempt FT Staffing– Hiring freeze 34.5%– Delayed Hiring 43.5%

Exempt FT Salaries– Overall reduction in increase pool%

21.6%– Wage freeze 26.6%

Table 1: Actions Used or Will Use re: Staffing and Compensation-CUPA 2/09 (N>304)

Non-Exempt FT Staffing– Hiring freeze 34.8%– Delayed Hiring 43.4%– Overtime control 56.0%

Non-Exempt FT Salaries– Overall reduction in increase pool% 21.8%– Wage freeze 26.9%

Table 1: Actions Used or Will Use re: Staffing and Compensation-CUPA 2/09 (N>304)

FT Faculty Staffing– Hiring freeze 19.0%– Delayed Hiring 24.1%– Phased retirement program 16.8%

FT Faculty Salaries– Overall reduction in increase pool % 19.0%– Wage freeze 23.2%

Principles Shared Governance Communication Transparency Strategic Planning Advocacy Accountability Protect Core Areas

Shared Governance and the Budget

Planning Council Budget and Resource Council Enrollment Management Task Force Human Resources Master Planning Council Sustainability Commission Vice President for Planning and Finance and Cost

Center Managers Student Assembly Professional and Operating Staff Advisory Councils President’s Cabinet President

Communication: Loop

Budget website Letters to the community via email Open Forums Meetings of various committees Input from the campus community

via website, forums, and email

Protect Core Areas

Gaining Economic Experience

Chairperson Staff: Chair of Cost Containment Dean Provost President Member of a College/Higher

Education Community

Reinvention of Higher Education

“No Frills” Education For-profit Entrepreneurship Collaboration Economic Development Globalization Public transformation/New fiscal

models

Questions: Will this economy affect?

Access to Education? External Accountability? Tenure? Presidential hires? The Physical Plant? Transfer? Diversity? Academic Quality?