From Major to Market

Introduction

It has been a difficult season for higher education in America, with high-profile scandals, violent protests, and budget shortfalls within the last year affecting institutions across the country. Increasing numbers of Americans are reporting little or no confidence in higher education. Effective and serious leadership has never been needed more, and the role of university governing boards has never been more important.

Despite these challenges, however, higher education continues to be a driver of economic success in Virginia and throughout America. The knowledge, training, and skills gained while in college or university are vital for students, allowing them to work in technologically advanced fields as well as in careers that require analytical thinking and communication abilities that are often far beyond what is taught by secondary education. Surveys continue to show that a majority of students enroll in college in order to increase their earning potential and that those who finish college do so for the same reason. Students want better jobs and expanded career opportunities. The key to restoring public confidence in higher education is to deliver on these hopes, ideally in a way that does not plunge students into massive debt.

The goal for responsible governing boards is clear: to deliver high-quality education at an affordable price. Our times make this task difficult but far from impossible. The difficulties, therefore, must be faced head on. First among these is the so-called “enrollment cliff,” which promises to wreak havoc on many a balance sheet. The facts here are well-known to everyone in higher education: Fewer students are moving through the secondary education system, which means that there will be fewer students enrolling in college. This is not an issue for the future, but one that administrations and governing boards must plan for today. These plans must be multidimensional, including everything from endowment spending to restructuring real estate portfolios. There is also a curricular question: What mix of programs will best serve the students that an institution will be enrolling five or ten years from now? How do these programs serve the economic needs of the state and region? How do schools create the most value possible even as available resources may shrink?

Read the full report HERE.

This report is part of the American Council of Trustees and Alumni’s Institute for Effective Governance®