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					                  UNIVERSITY OF VERMONT
19TH ANNUAL   LEGAL ISSUES IN HIGHER EDUCATION CONFERENCE
                    October 18-20, 2009

 RESTRUCTURING, RETRENCHMENT AND REDUCTION IN FORCE IN AN
                   ECONOMIC DOWNTURN

                          Part III

OBSERVATIONS ON HOW ROUGH IT MAY GET, AND HOW INSTITUTIONS
   CAN PRUDENTLY AND THOUGHTFULLY PLAN FOR CONTINUED
                    FINANCIAL TURBULENCE
      _________________________________________________

                      Lawrence White
            Vice President and General Counsel
                   University of Delaware
                     Newark, Delaware
  IMPACT (SO FAR AND ANTICIPATED) ON THE HIGHER EDUCATION
                        COMMUNITY:
On the cost side:
     PRESSURE TO CONTAIN HUMAN RESOURCE EXPENSES.
     PRESSURE ON FINANCIAL AID BUDGETS.
     MORATORIA ON NEW CONSTRUCTION.
     TRAVEL RESTRICTIONS AND “QUALITY OF LIFE” CUTS.
     (IN CALIFORNIA AT LEAST:) ENROLLMENT CAPS

On the revenue side:
     INSTITUTIONAL BUDGET SHORTFALLS.
     INEXORABLE UPWARD PRESSURE ON TUITION.
     ENDOWMENT AND FUNDRAISING SHORTFALLS.
     CONSTRAINTS ON BORROWING AND DEBT CAPACITY.

[equals:]
     UNPRECEDENTED AFFORDABILITY ISSUES.
     (Much more on this later.)
From National Association of Independent Colleges and Universities, Final Results:
Findings from the Survey of the Impact of the Economic Conditions on Independent
Colleges and Universities, January 30, 2009,
www.naicu.edu/doclib/20090131_ThirdEconSurvey.pdf




                                                                  Salary-related
                                                                  actions: 72
                                                                  percent!
From National Association of Independent Colleges and Universities, Final Results:
Findings from the Survey of the Impact of the Economic Conditions on Independent
Colleges and Universities, January 30, 2009,
www.naicu.edu/doclib/20090131_ThirdEconSurvey.pdf
From Goldie Blumenstyk,
Debt Bomb Is Ticking
Loudly on Campuses,
CHRON. OF HIGHER
ED., April 10, 2009, page
A1.
From National Association of State Universities and Land Grant Colleges [now the Association of
Public and Land-Grant Universities], University Tuition, Consumer Choice and College
Affordability: Strategies for Addressing a Higher Education Affordability Challenge, November
2008, www.nasulgc.org/NetCommunity/Document.Doc?id=1296
From National Association of State Universities and Land Grant Colleges [now the
Association of Public and Land-Grant Universities], University Tuition, Consumer Choice and
College Affordability: Strategies for Addressing a Higher Education Affordability Challenge,
November 2008, www.aplu.org/NetCommunity/Document.Doc?id=1296
From National Association of State Universities and Land Grant Colleges [now the
Association of Public and Land-Grant Universities], University Tuition, Consumer Choice and
College Affordability: Strategies for Addressing a Higher Education Affordability Challenge,
November 2008, www.aplu.org/NetCommunity/Document.Doc?id=1296
Some Cautious Conclusions, Suggestions and Prescriptions:


The political and policy-making focus over the next ten years will
be affordability (translation: tuition).

Colleges and universities (and, to a lesser extent, two-year
institutions) must contain personnel costs.

It’s time, seriously, to consider consolidation of “back room” costs
as part of a determined effort to contain personnel costs.

It’s time, seriously, to reexamine benefits.

The case must be made for public and private investment in
higher education.
From Public Policy Institute of California, PPIC Statewide Survey: Californians & Higher
Education, November 2008, www.ppic.org/content/pubs/survey/S_1108MBS.pdf
THE BEST MATERIALS I’VE FOUND ON THE IMPACT OF THE CURRENT RECESSION AND
CURRENT ECONOMIC HARD TIMES ON HIGHER EDUCATION:


National Association of State Universities and Land Grant Colleges [now the
Association of Public and Land-Grant Universities], University Tuition,
Consumer Choice and College Affordability: Strategies for Addressing a
Higher Education Affordability Challenge, November 2008,
www.aplu.org/NetCommunity/Document.Doc?id=1296


Facing the Financial Downturn: Toolkit and Resources for Colleges and
Universities, a web site maintained by the National Association of College
and University Business Officers at www.nacubo.org/x10934.xml

Private Colleges and the Economic Downturn, a web site maintained by the
National Association of Independent Colleges and Universities at
www.naicu.edu/news_room/private_colleges_and_the_economic_downturn.
 WASC ACADEMIC RESOURCE CONFERENCE 2009
             APRIL 15-18, 2009
         LOS ANGELES CALIFORNIA


    ECONOMIC HARD TIMES IN THE
            ACADEMY
OBSERVATIONS ON HOW BAD IT HAS BECOME, HOW
 ROUGH IT MAY GET, AND HOW INSTITUTIONS CAN
    PRUDENTLY AND THOUGHTFULLY PLAN FOR
                    CONTINUED
              FINANCIAL TURBULENCE
  _________________________________________________

                   Lawrence White
        President, Lawrence White Consulting
              Philadelphia, Pennsylvania