Future of Division III

[Ron Boerger]

A post-mortem (literally) at this point but a bit more context about the long-term issues that resulted in the eventual shutdown of Birmingham-Southern.  It's not the usual enrollment cliff situation, but there's no doubt that was a contributing factor in the end. 

The men who murdered B-SC, Part I
The men who murdered B-SC, Part II

[Gray Fox]

A post-mortem (literally) at this point but a bit more context about the long-term issues that resulted in the eventual shutdown of Birmingham-Southern.  It's not the usual enrollment cliff situation, but there's no doubt that was a contributing factor in the end. 

The men who murdered B-SC, Part I
The men who murdered B-SC, Part II

How very, very sad!  We will "rage, rage against the dying of the light."

[Kuiper]

Significant budget cuts at Lynchburg and Brandeis

https://www.forbes.com/sites/michaeltnietzel/2024/06/02/budget-axe-falls-at-lynchburg--brandeis-university-of-the-arts-to-close/?sh=275d317e2f8c

The University of Lynchburg in Lynchburg, Virginia, and Brandeis University in Waltham, Massachusetts both announced large-scale budget cuts involving academic programs and/or personnel

At the University of Lynchburg, officials announced an "academic transformation" that involves closing 17 academic programs, 12 at the undergraduate level and 5 serving graduate students. The reductions come as Lynchburg has suffered an enrollment decline of almost 15% over the last decade.

According to the university, about 40 faculty positions and an additional 40 staff positions will be eliminated. The administration will also be restructured, resulting in a reduction of four positions.

According to the Boston Globe, Brandeis President Ron Liebowitz recently informed the campus community that the university would need to eliminate 60 positions in the coming weeks to reduce a projected $2 million budget deficit for the next academic year. Brandeis has seen its total enrollment slide approximately 9% in the past five years.

[Kuiper]

FAFSA Fiasco may push struggling colleges over the edge

https://www.insidehighered.com/opinion/views/2024/06/03/will-fafsa-fiasco-kill-some-colleges-opinion

Battered by enrollment losses from the COVID pandemic, inflationary pressures, and persistent questions about the value of college degrees, financially imperiled colleges now face a new threat to their economic sustainability and missions. The completely bungled roll-out by the U.S. Department of Education of what was intended to be a simpler, more user-friendly Free Application for Federal Student Aid (FAFSA) is instead causing a precipitous decline in the number of students completing the form.

The result may be a dramatic enrollment decline this fall, leaving colleges already on the brink of financial failure at the risk of falling over the cliff. With the traditional May 1 deadline for students to decide on which college they will attend having come and gone, the FAFSA fiasco has caused hundreds of thousands of students either to not apply to college or face uncertainty about where they can afford to attend because FAFSA delays, mistakes and reprocessing have made it difficult, if not impossible, for colleges to finalize their financial aid offers.

How bad is the situation? While estimates vary, tracking by the National College Attainment Network shows that as of May 24, 14.4 percent fewer high school seniors had completed a FAFSA than at the same time last year. That translates into almost 300,000 fewer high school graduates completing the form. And that's significant because FAFSA completion is strongly associated with postsecondary enrollment: a much higher percentage of seniors completing the FAFSA enroll in college versus those who don't complete the form.

In our conversations with highly regarded enrollment professionals across a range of institutions, all agree that many colleges will enroll fewer students and gain less net tuition revenue this fall because of the FAFSA problems. Some estimates range from a 10 percent to a 20 percent decline in the entering class.

[WashJeff68]

On the PAC board I took a quick look at 990's and the debt equity ratio. Bethany could be in trouble. Basically net assets equals debt. Retention rate of less than 50%. How do you sustain that? Part of the debt is a USDA loan they just took to "enhance facilities."  Looks like a  Hail Mary to me.

[Ryan Scott (Hoops Fan)]

I would not be surprised to see a few schools announce in August they can't operate this year.  I'm sure a lot of small schools are counting on FAFSA getting worked out before classes start - and if that doesn't happen, will not be able to make payroll.

[jknezek]

Quick story. About 15 years ago my daughter was born at 32 weeks, significantly premature, right in the middle of my last semester of graduate school. Due to the demands of having my first child in the NICU for an extended period, I dropped out of the class and, for one reason or another, never got around to finishing.

A few weeks ago I started looking in to options to finish. No transfer school was willing to accept my ancient credits, so I started calling the school, now out of state, where I originally earned them. They have a 10yr policy for credit expiration, and a state mandate for state schools that you have to earn credits in one class every 2 years to keep those credits active.

I had hoped that I wouldn't have to start over, considering all I needed 15 years ago was 3 credits, but I figured I'd have to retake some classes.

Well.... that school was so happy to hear from me that after filling out a fairly reasonable petition and having an interview with admissions, the head of the MBA program, and the graduate college dean, they accepted all of my credits and reinstated me.

I will take my last 3 credits this fall and, provided I remember how to pass an academic class, I will finally graduate.

Why is this in the thread? Because after my interview with the Dean I asked about my odds. She said 5 or 6 years ago there was no chance they would have reinstated all my credits and I would have had to take between 12 and 15 credits to graduate. But admissions and revenue are so far down since COVID I had a very good chance.

Now that was helped by my work experience and A average, and I'm sure my current job title is a factor as well, but schools are hurting. They are a lot more willing to do things than they used to be, because they just don't have any other choice right now. Revenue is king.

[Ryan Scott (Hoops Fan)]

You'd think, if revenue is really king, they would've at least tried to negotiate an extra class or two out of you, right?  You only need 3 credits to graduate, policy says we don't have to count any, how about taking 9 credits and we'll work it out?

[jknezek]

You'd think, if revenue is really king, they would've at least tried to negotiate an extra class or two out of you, right?  You only need 3 credits to graduate, policy says we don't have to count any, how about taking 9 credits and we'll work it out?

That's what I figured would happen but I'm not complaining. I think they were more worried I'd just say "nah." 3-4k for one class is apparently better than no k.

[Ron Boerger]

Another factor is they probably didn't want to risk the chance of someone badmouthing them - in this environment schools just don't need to deal with any kind of negative PR. 

Congratulations on your re-acceptance and best wishes for completing your degree.  I regret to this day letting myself let 27 graduate hours die on the vine because I was too worried about coming up with a thesis topic. 

[WashJeff68]

Went to visit the Bethany web site. Here is a link to the bio of the current President:


https://www.bethanywv.edu/about/college-leadership/

They are, as I suggested previously, in Hail Mary mode.

[Kuiper]

For those looking for early warning signs, here are some articles about DIII schools facing budget issues that have been made public in the past semester or so.  It doesn't mean those schools are failing. Indeed, schools that aren't examining their budgets and making changes, especially those that are instead borrowing, might be the ones to be more concerned about.  Nevertheless, I thought these non-merger, non-closure, announcements were worth highlighting because they reflect the issues many of the colleges who are members of DIII may be facing, and not just small liberal arts colleges or private universities.

Whitworth

Whitworth University says budget cuts are now happening because of low enrollment between 2020 and 2024. It says it's evaluating program offerings, operations and employment budget lines right now.

St. Catherine's

The institution posted an operating deficit of $19 million for the fiscal year that ended May 2023 after racking up a $9.5 million deficit the year before, according to its latest financials. Total revenues decreased by about $6.5 million year to year year while expenses rose by $3 million. Tuition revenue, specifically, fell 7.7% from fiscal 2022 to fiscal 2023.

St. Catherine had 3,577 students in fall 2022, down 24.3% from 2017 and about a third from 2010 levels, according to federal data.

Not helping financial matters, a former dean of St. Catherine's nursing school was recently charged with embezzling $400,000 from the university.

St. Norbert's

St. Norbert College is laying off 41 of its employees.

"You can be fundamentally solid both educationally and financially, but as demographics produce fewer 18 to 22-year-olds, you have to sometimes adjust the size of your organization and that's what we've done," said St. Norbert College President, Laurie Joyner.

Joyner says fewer students are enrolling in the college.

After cutting faculty and staff earlier this year, they are now trying to grow their way out of trouble by adding programs and expanding athletic team rosters.

As part of its plan to fix its budget issues, St. Norbert College is offering 12 new academic programs.

The new class offerings will help raise revenue as the college deals with a $9.2 million combined budget deficit for the '24 and '25 financial years.

St. Norbert College leaders say enrollment has declined 14% over the past 10 years. They say that was a leading factor in operational losses for two straight years.

As a result, a number of faculty positions were eliminated while class offerings were expanded and athletic teams will expand rosters and club teams will be added to help raise revenue.

Marietta College

"Given the anticipated significant drop in college-going students over the next 10 years, it is vitally important that we remain flexible and creative and open to change," she wrote in a statement.

Enrollment at the college has hovered around roughly 1,200 students for the past several years, but it dropped roughly 26% from 2012 to 2022.

Marietta brought in $15.2 million in revenue from net tuition and fees in fiscal 2022, down from $22.7 million in fiscal 2017, according to publicly available financial records. Financial aid awards grew over that time.

In October, the administration announced it would discontinue several undergraduate programs, including those in ��Asian studies, environmental engineering, linguistics, global leadership studies, land and energy management, music education, music therapy, Spanish and vocal performance. Officials also said they would end a master's program in athletic training.

Concordia University Wisconsin

The Wisconsin campus hasn't enjoyed the same enrollment gains. It had 4,988 students in fall 2022, down 35.6% from 7,751 a decade prior.

Ankerberg, who took over as president of the two campuses at the start of 2023, did not specify how many positions could be cut or the size of the deficits. But according to public records, the institution has had budgetary shortfalls across both of its campuses from fiscal years 2017 to 2021. It generated a surplus in fiscal year 2022.

″Too many colleges and universities are content to scrape by each year, moving from crisis to crisis, existing in unending austerity," he said. "That will not be our path."

Penn State University System

In their announcement, university officials said the plan is meant to balance the budget, as expenses have been exceeding revenues due to long-term financial challenges.

Among those challenges are enrollment declines connected to the changing demographics of Pennsylvania. While student headcounts have increased at the university's main campus, enrollment across the commonwealth campuses has declined 20% since 2016, according to Monday's announcement.

State funding hasn't kept up with inflation, which has increased the cost of the goods and services the university needs to purchase. Healthcare costs are expected to rise $30 million in the 2026 budget, officials said.

"These are not one-time challenges or situations that are going to go away," Penn State President Neeli Bendapudi said in a Thursday video message. "This is why we must take a hard look at our programs, our portfolio, infrastructure, operations — frankly, the entire business model for higher education."

[Kuiper]

A few more stories about problems with state universities, particularly branch campuses, since many people only focus on small liberal arts colleges when thinking about financial vulnerability.  State schools frequently claim poverty right around the time when state legislatures are setting budgets, so you have to take some of these reports with a grain of salt.  Nevertheless, they are making real cuts and they have had real declines in enrollment related to demographic declines in their state.  Branch campuses are often the first to suffer and the most likely to be merged or closed if things get worse.

Here's more on cuts at the Penn State Commonwealth campuses (many of which are DIII)

Penn State is offering buyouts to Commonwealth Campus employees to reduce its multimillion-dollar budget deficit, a dramatic step for Pennsylvania's flagship university.

Tenured faculty, tenure-line faculty, academic administrators, and staff who are full-time employees, not on fixed-term contracts, and were hired before April 1, 2023 are eligible, according to the university's website. These employees have until May 31 to decide, and their final day of work, in most cases, would be June 28. Employees who voluntarily resign will be paid a year's salary.

"Each of our campuses brings a unique element and value to our Penn State community, our structure and our students," a university spokesperson wrote in an email to Spotlight PA.

"However, a handful of campuses have experienced significant enrollment declines in the last few years," the spokesperson wrote, "and some campuses are spending significantly more than they bring in revenue; with our current funding level from the state, the current business model is unfortunately not sustainable."

SUNY Fredonia

SUNY Fredonia is set to eliminate 13 majors from its curriculum. The change, according to the university, is meant to shift costs within a stressed budget. The university opted to discontinue programs in which students are not enrolling to focus on areas of study with "potential growth and proven student demand," according to university officials.

The changes followed a study that predicted a $1 billion annual shortfall in the next decade had the university continued under its current operational and cost structure.

SUNY Potsdam

It's been a tumultuous year for SUNY Potsdam, the state college in St. Lawrence County which has seen a 40% decline in student enrollment since 2010. 

In September, SUNY Potsdam announced a downsizing plan to make up a $9 million dollar deficit connected to that declining enrollment. The school has eliminated nine degree programs since then.

In late January, the school cut seven staff positions.

"You know, there are certainly campuses like Potsdam, where there are buildings, that given the reduced enrollment, they're just not in use. And I think the challenge for the campuses...is they are spending money to heat them, to preserve them, but there's not students inside."

Buffalo State to Cut 37 Programs Amid Financial Woes

Buffalo State University is set to cut 37 low-performing programs amidst school-wide financial woes, the school announced Thursday.

The cuts affect early childhood education, chemistry M.A. and urban studies programs, as well as several in foreign languages, including French, Italian and Spanish. Beyond programs, other cuts include certification titles, concentrations, minors and certificates.

The university also stated that the previously announced 12-month hiring freeze will remain in place, as will a phased retirement program.

The school has seen a decrease in enrollment of 42% over the past decade, but did see an increase in first-time undergrad enrollment in fall 2023.

Western Connecticut

The report comes midway through the fiscal year as WestConn leaders look ahead to the next academic year, for which they forecast a $21.6 million budget deficit. The university's plan to reduce that deficit includes further spending cuts, increased state aid to the university and a 5 percent hike in student tuition rates that will go into effect at state colleges and universities in September. Leaders forecast the combination will reduce the university's future deficit by more than $15.2 million. Leaders hope a request for additional state dollars through an adjusted state budget will close the gap entirely.

[Kuiper]

I think this is an example of a school adding, rather than cutting, sports to help deal with enrollment issues.

Hiram adding three new sports

https://www.hiram.edu/hiram-news/hiram-athletics-announces-the-addition-of-three-new-varsity-sports/

[jknezek]

I think this is an example of a school adding, rather than cutting, sports to help deal with enrollment issues.

Hiram adding three new sports

https://www.hiram.edu/hiram-news/hiram-athletics-announces-the-addition-of-three-new-varsity-sports/

I can't imagine ice hockey is much of a net positive to revenue. Roster size of 20? The average people pay for Hiram, inclusive of all costs like housing and food, after scholarships and aid, is about 22K/yr. So that's about 440K per year in revenue for 20 players?

Ice hockey was the most expensive sport, per athlete, in the 2011-2015 report. That's the last one I saw. The numbers are obviously massively dated thanks to the inflation we've seen since that report closed almost a decade ago, however, it cost 200K, on average, to have a men's ice hockey program. Add 1/3 to those expenses, at least, for inflation. That's 270K vs total student revenue of 440K. Looks like 170K of revenue less hockey expenses, but you still have to house/educate those students out of that 170K. So working off 20 on the roster, that's a whopping $8.5K per student leftover. That's only slightly more than the $6500 they charge just for a meal plan.

I see the benefit of being the only ice hockey team in Ohio, though that also leads to some travel issues. No conference announcement, but maybe UCHC with a lot of PA and Western NY teams?? Maybe I'm drastically underestimating an ice hockey roster with only 20 students?

https://www.ncaapublications.com/productdownloads/D32015RevExp.pdf