5/5/13 6:34 PM Low funds burden higher education - Northwest Missourian: News

Page 1 of 3 http://www.nwmissourinews.com/news/article_a4546ae8-ad40-11e2-89b9-0019bb30f31a.html?mode=print
Low funds burden higher education
Alex Rash Associate Editor | Posted: Wednesday, April 24, 2013 7:39 pm
Last year, Northwest found itself faced with tough decisions to cut costs following a 12.5 percent cut to
higher education.
Today, the University and other public institutions across the country continue to look for ways to
combat troubling finances that have set them back a quarter of a century.
In 1988, a gallon of gas cost around $0.90, Nike had just coined the phrase Just Do It and tweeting was
only for birds. Many things have changed in the last 25 years; however, the amount of money higher
education institutions receive from the state seems to be having a flashback.
Were about at the same level of funding that we had in 1988, actually a little bit less than the
institutions received in 1988, said Kathy Love, Missouri Department of Higher Education public
information officer.
Due to various budget cuts, higher education has taken major financial hits across the nation. Love said
public institutions in Missouri have seen nearly 9 percent in decreases of state funding over the last five
years, and the near future shows no sign of a rebound in the numbers.
Northwest is reliant on two major incomes, state appropriations and tuition, both of which are controlled
by the state, according to University Provost Doug Dunham.
Weve gone from about 20 years ago, 70 percent of our budget was from state appropriations to about
33 percent of our budget now, Dunham said. I dont see those increasing significantly.
While the funding from 1988 is similar to the current year, there is one major difference enrollment. In
1988 there were nearly 125,000 students enrolled in higher education throughout the state, today the
numbers are closer to 200,000 students.
According to the Center on Budget Policy Priorities, states are spending 28 percent less per student in the
2013 fiscal year than they were in 2008.
Enrollment has gone up, and funding has gone down, Love said. If you compare the two years, 2012
and 1988, you see that in 1988 about two-thirds of all operating funds for colleges and universities came
from state government; in 2012 its barely half that amount. The remainder is being picked up by
students in the form of tuition.
Northwests tuition has increased by approximately 23 percent per credit hour over the last six years,
according to the Missouri Department for Higher Education.
5/5/13 6:34 PM Low funds burden higher education - Northwest Missourian: News
Page 2 of 3 http://www.nwmissourinews.com/news/article_a4546ae8-ad40-11e2-89b9-0019bb30f31a.html?mode=print
Other schools within the state have seen similar increases, Missouri Western State University with 21.8
percent and the University of Central Missouri with 16 percent since 2007.
Public higher education institutions in Missouri must keep their tuition hikes less than or equal to the rate
of inflation, or they are required to return a portion of their state funding.
Senior Amber Beenken said that while she will not have to bare the burden of college expenses for much
longer, she thinks future students will find alternative ways to cut costs.
I think that students will start taking advantage of cheaper classes at community colleges before going
off to a four-year institution and may even decide to attend trade schools instead of a four-year college,
Beenken said.
Gov. Jay Nixon proposed a $34 million increase in higher education funding for the 2014 fiscal year. If
approved, this would mean around $1.2 million in extra funding for Northwest.
However, the extra funding still leaves little to be desired. Approximately $2 million was cut from the
budget last February.
The General Assembly is debating the budget and will return it to Nixon by May 10 for consideration.
We never know until the legislative season is over what were going to get in terms of state
appropriations, Dunham said. That makes it hard to budget several years out.
Northwest, along with other schools across the country, have made strategic moves to lower university
costs. Dunham said there have been three primary ways to cut spending in Bearcat country offering
collaborative courses with other institutions, course redesign, and department realignments.
In 2012 Northwest reduced its number of departments from 19 to 11, which means the number of
department chairs was reduced, which saves money on administrative overhead.
Over the past five years, public universities around the country have thrown around the notion of
becoming private institutions due to minimal state funding.
In 2010 the University of Colorado considered going private, since the state only provided 3.3 percent of
the Universitys $2.6 billion budget, said Kelly Fox, CU vice president of budget and finance, in an
interview with The Daily Camera. However, due to hang-ups in Colorados constitution, CU remains
public.
Dunham said Northwest is not in the ballpark of making the public to private change.
It is not something that weve talked about, Dunham said. Im not aware of any public institution in
Missouri talking about that. It has been talked about in other states.
5/5/13 6:34 PM Low funds burden higher education - Northwest Missourian: News
Page 3 of 3 http://www.nwmissourinews.com/news/article_a4546ae8-ad40-11e2-89b9-0019bb30f31a.html?mode=print
Dunham said in order to privatize the University, Northwest would have to purchase the land and
buildings, which come to around $300 million. On top of that, it would lose the $27-30 million the state
provides in funds.
Thats why I just dont think its plausible now, Dunham said. The primary benefit, because we
always have to keep an eye on access and affordability, the primary benefit is there would be less
regulation at the state level over curriculum.
For now, the University plans to evolve with the changes and find creative ways to cut spending.
Dunham said above all, despite tuition increases and minimal state funding, he hopes the value of a
college degree will not be overlooked.
If you were to pick up a newspaper article, magazine, watch the news, whatever, you would think that
higher education is in crisis, Dunham said. I disagree with that. Northwest in particular has a very good
story to tell; our retention rates, our graduation rates, the success of our students are among the highest of
our peers in the state of Missouri.
So were doing something right. Yes, its become more expensive for students to go to school, yet at
Northwest the average indebtedness is lower than the state and the national average. Were trying to keep
an eye towards affordability.