Layoffs Follow Enrollment Drop at Midway College

Enrollment is down 18 percent this fall at Midway College, a private institution in Kentucky, The Lexington Herald-Leader reported. As a result, the college is eliminating the positions of about a dozen of its 54 faculty members, and ending all employer contributions to retirement accounts. "As an institution that is so heavily dependent on tuition revenue, cuts have to be made," said John Marsden, the president,  in a news release. "After exhausting all other options, some faculty contracts will be eliminated from this fiscal year in order to balance the budget."

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Moody's Warns of Impact of Enrollment Declines

Declines in the total enrollment of American higher education are "credit negative" for colleges and universities, particularly the majority that depend on tuition revenue for operating support, says a review of credit issues released Monday by Moody's Investors Services. "Enrollment declines in higher education are credit negative because they heighten competitive pressure for all universities. This limits opportunity to grow tuition revenue, now the primary revenue for the majority of public and private universities," said the report. "[A]mong traditional undergraduate colleges and universities, the credit effect is more severe for lower-rated, tuition-dependent colleges and universities that lack a strong brand name or market position. For higher rated universities with established student demand, the effect is minimal."

The report added that demographics of students may have a major impact on which institutions feel these shifts. "With the fall 2012 enrollment declines most pronounced for students over the age of 25, the credit effect is most acute for community colleges and for the 30 percent of universities we rate where more than 25 percent of total enrollment is at the graduate level," the report said. "Declining graduate enrollment can disproportionately affect a university since students in graduate programs typically generate more revenue per student than in undergraduate programs."

Report Faults States on Funds for Black Land-Grant Colleges

States generally meet their obligations to match certain federal funds that go to predominantly white land-grant universities, but this isn't the case for historically black land-grant colleges, according to a new report by the Association of Public and Land-Grant Universities. Between 2010-12, the report says, the black land-grant colleges should have received an additional $56 million in state funds.

Early Court Win for Pa. Officials in Suit Over NCAA Fines of Penn State

A Pennsylvania court on Wednesday refused to dismiss a lawsuit brought by state officials who want to ensure that $60 million in fines Pennsylvania State University has agreed to pay the National Collegiate Athletic Association stays in the state, The Patriot-News of Harrisburg reported. The NCAA had asked the Commonwealth Court to dismiss a lawsuit, filed by a state senator and Pennsylvania's treasurer, asking that the hefty fine the university agreed to pay as part of a consent decree in the wake of the Jerry Sandusky child abuse scandal go into a state-established endowment for child abuse victims, rather than going to the NCAA to spend on child abuse advocacy nationally.

A majority of the court's judges rejected the NCAA's arguments that the Pennsylvania officials did not have legal standing, that the case is moot because Penn State is not a party to it, and that the lawmakers' actions illegally interfere with the consent decree between the NCAA and Penn State, among other things, the newspaper reported.

$200M Gift for U. of Michigan B-School and Athletics

Stephen M. Ross, a real estate developer, has given the University of Michigan a gift of $200 million. The funds will be split between the business school and the athletics department. Gifts by Ross to Michigan now total $313 million, making him the largest donor in the institution's history.


Westfield State Board Backs President Despite Report's Findings of Violations

An external review released to Westfield State University's Board of Trustees Thursday found that President Evan Dobelle used his foundation-provided credit card for tens of thousands of dollars in personal expenses, but several board members rallied behind him, The Republican of Springfield reported. The accountant's review, prepared in March, found that the president had charged $68,000 in personal expenses to the card, in violation of university rules. But in remarks to the board, Dobelle noted that no fraud had been discovered, and that he had repaid all of the personal charges, the newspaper said. The Boston Globe reported that Dobelle challenged the validity of the audit report, citing the fact that it had been approved only by an executive committee of the board.

Several board members praised Dobelle at the meeting. “When you are a visionary and want to do something great, you’re going to have detractors,” said one. (Note: This item has been updated from an earlier version to correct statements about the nature and timing of the report.)

Despite billions in debt, perhaps little worry for elite institutions

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Elite higher education institutions have billions in debt, but they're probably good for the money.

Mitch Daniels Signs Letter on 'Innovation Deficit' After All

A July letter to President Obama and Congress calling for steps to close the "innovation deficit" now includes a new signatory: Purdue University President Mitch Daniels. The letter was signed by scores of university presidents, and its emphasis on federal funding for research and technology made joining the push an easy call for most higher ed leaders. But faculty members at Purdue -- an institution whose academic strengths in the sciences mean its professors depend on federal support -- noted that Daniels didn't sign. In his pre-Purdue political career, Daniels was known as a budget hawk and he has repeatedly raised concerns about the size of the federal deficit. He explained that he didn't sign the letter because of "its complete omission of any recognition of the severe fiscal condition in which the nation finds itself."

Now, however, he has signed. He explained in a statement that he only recently learned that the Association of American Universities and the Association of Public and Land-Grant Universities -- the two groups that coordinated the July letter -- last year released a statement noting their broad concerns about the federal budget deficits. Said Daniels: "I regret that I was unaware of last year’s excellent letter. If it had been attached, restated or incorporated by reference, I would gladly have signed the more recent letter. Now that I have confirmed with the APLU president that last year’s stance remains in effect, I am in full support of the AAU and APLU efforts."

Reader suggestions on how higher ed could save money for students

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President Obama proposed a reform of law school as a quick way to cut students' costs and spending by colleges. Inside Higher Ed asked its Twitter followers for other ideas.

Cal Lutheran Plans to Merge With Seminary

The board of California Lutheran University has approved a plan for the Pacific Lutheran Theological Seminary to become part of the university. The seminary, which would maintain its campus in Berkeley, has been free-standing. Both institutions are affiliated with the Evangelical Lutheran Church in America. The plan still needs to be approved by the accreditor of the institutions, the Western Association of Colleges and Schools.


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