Public colleges are navigating an unprecedented financial crisis. The landscape of higher education is in a state of flux, with institutions grappling with sizable deficits, enrollment declines, and unstable state and federal funding. Institutions such as Rutgers University, Pennsylvania State University, the University of Minnesota, and the University of Nebraska are under financial strain, invoking drastic measures like financial exigency, which allows for the termination of faculty contracts, including tenured faculty, as a last resort to address severe financial problems.
In Arkansas, most of its four-year public colleges and universities are set to receive cuts in their general revenue allocations in fiscal year 2025. This uncertainty in funding sources adds to the financial instability of public colleges, necessitating budget cuts and leading to program reductions.
In response to these financial challenges, colleges are making historic, large-scale reductions in academic programs and faculty. Classes at institutions like Ohio’s Eastern Gateway Community College have been suspended and entire campuses, such as the University of Wisconsin's Marinette campus, have been closed. Additionally, colleges are considering eliminating various academic programs, as seen at both private institutions like Drake University and public institutions such as SUNY Fredonia.
This crisis is a wake-up call for creativity and innovation in higher education. Usually, it's up to the president of the institution and the governing board to stir things up and get creative. However, in today’s academic environment, it's also an opportunity for state legislatures to collaborate with these institutions to identify and address the challenges they face.
In his book, “Whatever It Is, I’m Against It,” former college president Dr. Brian Rosenberg talks about presidential leadership in time of change and notes that when seeking a new president, most boards make it imperative that candidates are innovative and creative. In response to Dr. Rosenberg’s suggestion, we reviewed 36 current announcements for open college presidencies. It’s true that in all the job descriptions, boards said they want innovative leaders that will provide visionary leadership, and promote innovation across campus, among other forward-thinking attributes.
No, they don’t.
It sounds good, but they really just want someone to keep the ship afloat and avoid major controversy. Innovation would require major changes and, typically, change is not a trait frequently associated with higher education.
Why? As Dr. Rosenberg points out, the fact is that resistance to change on campus, particularly among faculty members, is profound. Even the mere suggestion of reform can trigger a wave of discontent on campus.
This is where the role of state legislatures becomes crucial. They can work in tandem with campus leadership to address these challenges. While issues like diversity, equity, inclusivity (DEI), and free speech are currently being discussed in legislative sessions across the U.S., it's essential not to overlook the need for financial and operational reform that will allow colleges and universities to become more competitive and better serve the long-term interests of taxpayers.
State legislatures have the power and the responsibility to enact legislation that will bring about the necessary reforms in higher education. They can ensure consistent funding, encourage operational efficiency, and demand accountability and quality assurance in higher education. They can legislate changes that will meet community needs and provide value to their graduates. But this should be done in collaboration with campus leadership.
The future of many institutions hangs in the balance as the higher education sector continues to grapple with these issues. Now, more than ever, state legislatures need to consider active, decisive intervention. But this intervention should be seen as a partnership with campus leadership, not a takeover.
Change is not just necessary; it's imperative. The financial crisis in higher education is a call to action for our state legislatures. They must consider rising above the inertia in higher education and championing the reforms necessary to ensure financial stability, operational efficiency, and a competitive edge for our public colleges and universities.
Higher education is in a state of depression. The public is losing confidence in the ability of our colleges and universities to prepare our young people for the future. But with some determination and leadership from our state legislatures, in collaboration with campus leadership, we can win back public trust. We can turn this crisis into a launchpad for growth and innovation, making sure our public colleges and universities remain the bedrock of our communities and a guiding light for the next generation.
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