Beset upon by students unable to afford tuition, the ongoing pandemic, competition between schools, and even some individual's questioning of a degree's value, college consolidation continues to reshape the secondary education landscape, and faculty careers in the process.
More than 90 nonprofit universities and colleges shut their doors or announced their intentions to close between January 2016 and February 2020, one industry estimate recorded. And more than 230 institutions, almost 10% of 2,300-plus researched over eight years, could close or merge, given the stressors they face, according to recently published book, The College Stress Test: Tracking Institutional Futures Across a Crowded Market.
In addition, 10% were deemed likely to close and 30% more were expected to struggle, according to Susan Baldridge, a professor at Middlebury College, who co-authored the book with Robert Zemsky, higher education division chair at the University of Pennsylvania, and Susan S. Shaman.
Defining Consolidation
Merging with other schools could be the best solution for some schools' long-term survival, the authors wrote. This approach often impacts administration, maintenance, and technology departments more than faculty as merged institutions seek to differentiate themselves by offering a plethora of classes.
After about 10 years of declining enrollment and subsequent financial pressures, the 14-campus Pennsylvania State System of Higher Education in October took the second step in a plan that could merge California, Clarion and Edinboro universities into Western Pennsylvania, with Bloomsburg, Lock Haven and Mansfield universities uniting into the Northern Tier, local news reports said. Step one involved studying the issue; the second step involves further research, including a review of courses offered, enrollment trends, and students' interests.
For example, Indiana University of Pennsylvania – which saw enrollment drop to 10.067 in Fall 2020 from 15,126 a decade prior – is melding together its College of Humanities and Social Sciences with its College of Fine Arts, serving a total of 1,150 students, Trib-Review reported.
Other secondary education facilities are taking other steps. Georgia Southern University formed when Georgia Southern University and Armstrong State University came together in 2017, part of the southern state's widespread consolidation initiative that began years before Covid-19's arrival.
"Each of these consolidations was unique but shared common goals: improving outcomes for students and better serving the education and workforce needs of their respective regions," said USG Vice Chancellor for Organizational Effectiveness John Fuchko III, in a statement at the time.
After considering merging University of Alaska Southeast into either University of Alaska Anchorage or University of Alaska Fairbanks, the state's Board of Regents Audit Committee in August 2020 again rejected the move, despite a bigger than expected hole in its budget. But the holdout did not last long: As-of November 2020, the school's projected shortfall of up to $40 million by 2022 is expected to force consolidation across some of its campuses.
For its part, Ohio Wesleyan University is eliminating 18 majors. The University of Florida’s trustees this month took the first steps toward letting the school furlough faculty. The University of California, Berkeley, has paused admissions to its Ph.D. programs in anthropology, sociology and art history.
As it resurges across the country, the coronavirus is forcing universities large and small to make deep and possibly lasting cuts to close widening budget shortfalls. By one estimate, the pandemic has cost colleges at least $120 billion, with even Harvard University, despite its $41.9 billion endowment, reporting a $10 million deficit that has prompted belt tightening.
The University of Alaska Board of Regents Audit Committee report has revealed a larger-than-anticipated budget gap, and a short time frame during which to solve it, forcing some tough decisions dead ahead.
The Regents will consider solutions at their next meeting, June 4-5, including merging University of Alaska Southeast into either University of Alaska Anchorage or University of Alaska Fairbanks.
The university system as a whole is projecting a shortfall of $14 million to $40 million by fiscal year 2022, even after using $25 million in one-time funds.
"We haven’t seen a budget crisis like this in a generation," Robert Kelchen, a Seton Hall University associate professor of higher education who has been tracking the administrative response to the pandemic, told The New York Times. “There’s nothing off-limits at this point.”
Not Just Covid
Consolidation entered higher-ed conversations before Covid-19, although the pandemic certainly escalated and elevated the topic.
Enrollment for freshmen declined 15% year-over-year versus 2019, according to the National Student Clearinghouse Research Center. That's part of a total 4% decrease in undergrad enrollment cutting into university coffers.
And, as Fierce Education recently reported, 27% of college students did “not agree” at all with the that their education is worth what they are paying.
However, if institutions of higher learning close campuses and schools, lay off faculty, and offer fewer courses on less diverse topics, will that hinder or help them attract and retain new students? Consolidation eliminates certain expenses, including duplicative admin and operational overhead, but at what cost?