Business issues

Brown dispute questions what's a fair payment in lieu of taxes

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Rocky negotiations in Providence about how much Brown pays the city in lieu of taxes highlights the difficulty of determining an appropriate contribution.

UC system weighs shift in tuition payments to after graduation

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Proposal being weighed by University of California to shift student payments to after graduation and tie them to income would be a dramatic change in how education is financed.

Dowling Files for Bankruptcy Protection

Dowling College filed for Chapter 11 bankruptcy protection Tuesday, moving to sell its two campuses on Long Island after shutting down this summer due to financial problems.

The small private nonprofit college estimated in court documents that its liabilities stand at between $50 million and $100 million. It estimated its assets as being worth between $100 million and $500 million. Dowling owns campuses in Oakdale and Shirley, N.Y., less than 20 miles apart.

Dowling will use bankruptcy protection in order to sell its real estate and other assets at the highest value possible, the college’s bankruptcy attorney, Sean C. Southard, told The Wall Street Journal. The college’s debt includes money owed on tax-exempt municipal bonds and general unsecured debt, he told the newspaper.

In June, Dowling announced plans to close after its enrollment dropped roughly in half since 2009 to about 2,000 students. Days later it said it was attempting to stay open by striking a partnership with Global University Systems, but it was ultimately unable to do so and closed its doors in August.

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Report Projects Impact of Possible New Recession on Public Institutions

If another recession hits, many public colleges and universities are likely to increase tuition to raise revenue as they are squeezed by drops in state and local funding, according to a new report from New America.

The think tank released a paper Wednesday predicting how a theoretical future recession would affect higher education finances. It examined historical data on state appropriations, local appropriations, tuition revenue and enrollment levels from the past 15 years. New America then modeled each state’s likely outcomes in the event of recessions of differing severity.

Only a few states were projected to hold per-student tuition below the current national average of $6,006 in the event of a recession before 2022: California, Florida, Nevada and Wyoming. Meanwhile, Nevada, New York and Texas were among those found to be most likely to maintain tuition levels, lower tuition or receive increased state appropriations, even in the event of a future recession. Colorado, Delaware, Michigan and Minnesota were found to be likely to increase tuition significantly and receive state funding cuts.

The report’s authors noted that using past outcomes to predict the future is imprecise.

“States with high disinvestment and large tuition increases in previous recessions could easily reverse course should their priorities change,” they wrote.

The paper also calls for avoiding scenarios that negatively impact students by changing the way state higher education is financed. It suggests a requirement that state and local governments maintain per-student funding levels in order to receive federal aid and that a new state-federal partnership could be developed that would provide new federal funding for states agreeing to meet conditions like holding down tuition and raising state appropriations.

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Indian university buys Long Island campus, cancels other proposed purchases under regulatory scrutiny

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Under scrutiny from regulators in Massachusetts, where it hoped to acquire a campus, Amity University focuses its plans for U.S. expansion on just-purchased campus on Long Island.

Personal liability insurance shifts the burden of risk from the institution to the individual (essay)

This past summer, members of the Organization of American Historians received an email titled “An easy way to protect yourself and your job.” A targeted advertisement, the email offered OAH members the chance to join K-12 teachers and affiliates of other academic associations in applying for professional liability insurance at a discounted rate.

As a news article published by Inside Higher Ed described, this type of solicitation raises a number of important questions. Is such coverage necessary? Are policies like the ones advertised a good investment? Why do organizations like the OAH sponsor these plans?

Those are important questions, but as historians of insurance, risk, labor and capitalism, we believe we must also think critically about the risks that professional liability plans are designed to manage and the political dimensions associated with the sale of such policies. In particular, we have found that private liability coverage shifts the burden of managing risk from the institution to individuals. Moreover, the privatization of on-the-job protections can threaten collective organizing and shared governance in higher education.

The Problem of Precarity

The state of faculty members at colleges and universities is clearly precarious. At best, tenure-track positions offer the possibility of long-term job security, a reasonable teaching load and contracts that guarantee certain rights and benefits. For adjuncts, postdoctoral fellows and visiting professors, however, where the next paycheck will come from is an uncertainty that must be navigated on a term-to-term or year-to-year basis.

As temporary employees, faculty members have good reason to be afraid. Their jobs are insecure, they have access to limited resources and they cannot trust the institutions they work for to protect them. Nor can they trust their own students -- at least according to insurance marketing -- since each one is a potential legal adversary. Regardless of whether or not a hyperlitigious environment prevails in higher education, private insurance sold on an individual basis is a palliative to such concerns.

If faculty members do indeed face systematic liability problems, then these problems deserve a systematic response. Taking out insurance policies as individuals will not eradicate precarity in higher education. In fact, the expansion of privatized security mechanisms might even make such problems worse. Professional liability insurance implicitly asserts that individual instructors should be treated as isolated defendants in workplace matters.

The Politics of Private Insurance

We must assert a basic premise: all insurance is political. Insurance redistributes resources, dictates responsibility and creates and determines the collective bodies through which risk is managed. Americans have become accustomed to thinking about Social Security, Medicare and the Affordable Care Act as programs that have social impacts and are thus worthy of public discussion and debate. Private insurance should demand similar political attention.

Private insurance in the United States has always coexisted with other sources of security. These have included extended kinship networks, mutual aid organizations, fraternal societies, unions and, more recently, federal and state governments. While private insurance can work in partnership with those institutions, insurance companies’ pursuit of profit means that the issuers of private policies have different motives than those of more representative, noncommercial security providers.

Many Americans imagine insurance as a highly technical industry that deals rationally with objective facts and statistical data. When it comes to marketing, however, insurers regularly appeal to our subjective selves. They invoke fear and depict the world as uncertain and unsafe. For the past half century, insurance companies in America have sold their product as a means to self-sufficiency and independence, and an option that responsible individuals choose in order to demonstrate foresight.

In that context, it should come as no surprise that the uninsured and those covered by public security programs are depicted as dependent and irresponsible. Those who are capable of purchasing private insurance are seen as deserving of security, while those who cannot afford such luxuries (those most in need of security) are not.

Advertisements like the one in question sell an easy route to “peace of mind.” But they also sell a vision of a prudent self who takes control of an uncertain environment by capably managing her own risks. The individualization of risk -- the notion that we are each responsible for ourselves and not to each other -- is a central tenet of neoliberal cost-cutting. In respect to preserving academic freedom, shared governance and the right to collective organization, academics have understandably resisted policies that would isolate them as employees. Private liability insurance that encourages educators to go it alone should be viewed with like-minded suspicion.

Marketing Matters

Our point here is not to accuse the OAH and other professional academic associations that offer members similar plans of perpetrating a scam. But questions of intention and transparency should accompany any solicitation that bears what appears to be the tacit endorsement of a private, commercial product.

The OAH, in numerous other forums, has rightfully endeavored to facilitate discussions among faculty members, graduate students and adjuncts concerning what can be done to better the situation of historians who are the most vulnerable workers. Participants in those conversations have emphasized the role that self-governance can play, whether through unions or other means, in allowing faculty members to determine what protections and rights they need and deserve.

Whether or not the OAH is heartened by the recent National Labor Relations Board ruling that graduate students are indeed workers, and therefore allowed to organize and engage in collective bargaining, is unclear. No email was sent to members articulating this one way or the other. That is in line with the OAH’s general stance that it is an association dedicated to professionalization, access to resources and advocacy for history as a discipline and field of inquiry. If OAH members want to take this stance they can vote to do so as a body, or issue such a statement on the level of committee.

But that is the very point about which we hope to raise critical awareness. Personal liability insurance is political, even if it comes in a commercial guise. It conditions educators to identify risk as something that needs to be managed individually. It encourages employees, consonant with other trends, to accept that “employment at will” means they cannot rely on colleges and universities to stand by them in circumstances where they are held liable for performing their jobs.

Finally, there is something ironic about an association like the OAH sponsoring insurance for supplemental purchase, as a service to be potentially rendered, in order to contend with problems that stem from the increased tendency of students to view their education as coming with consumer rights. One of the instances that Forrest T. Jones and Company, the policy provider, cites as an example of a paid-out claim involves a civil suit that a student brought against a professor after being placed on academic probation, resulting in the student’s dismissal. All parties involved might have been better served by an arrangement where such disputes are governed first and foremost by review boards comprised of students, faculty members, administrators and other stakeholders. If contractualism must prevail, let it be on the level of arbitration clauses that operate as preconditions of enrollment and employment. Let both plaintiffs and defendants be responsible to their peers.

Better Paths to Security

All instructors should feel entitled to seek out protections from the institutions that employ them, and, in the language of the advertisement in question, aim to obtain a “relaxed” state of mind. But we would certainly advocate for a path to security that travels through collective measures like unions and other efforts to achieve shared governance. Even in the absence of union representation, employers should take the lead in managing liability, if for no other reason than to ensure that their instructors do not sacrifice critical teaching practices out of fear of being sued. Asking individual faculty members to go it alone, and to assess their own professional liability on a case-by-case basis, is at best a Band-Aid to the current state of precarity. No educator should have to purchase from a private company protections that they should be guaranteed through employment.

Caley Horan is an assistant professor of history at the Massachusetts Institute of Technology, and Andy Urban is an assistant professor of American studies and history at Rutgers University New Brunswick.

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Redesigning college processes with the student in mind (essay)

Even the most well-intentioned colleges and universities have a hard time figuring out where to start on the path to improving student success and completion. Financial incentives that keep students on track toward graduation have, in many cases, proven effective, but they often don’t scale in an era of tight budgets. Emerging technologies promise transformation, but they can fall short in a world where financial or organizational challenges tend to stymie implementation.

As it turns out, the road to innovation is lined with real-world hurdles. Initiative fatigue abounds. And all too often, fiscal and organizational barriers can win the day when colleges and universities consider doing something new.

But what if colleges and universities flipped that model on its head? What if the most successful initiatives started with doing less, not more? Can colleges and universities drive outsize gains without spending any money or imposing new responsibilities on faculty and staff members?

Savvy colleges and universities are doing just that, by embracing basic engineering strategies like design thinking or process mapping. Process mapping, as the name suggests, entails mapping out an institutional process from start to finish. The goal is to understand processes from the perspective of the person encountering a product or service -- in the case of higher education, students. It requires institutional leaders to ask, “How does a student engage with our college or university when trying to do X?”

The exercise is inherently empathetic -- it demands that administrators and faculty members put themselves in students’ shoes. And it guarantees, at the very least, greater self-awareness and knowledge of pain points and hurdles that students experience and that need to be removed.

Underlying this approach is a somewhat controversial premise: colleges and universities were not, historically, designed around the needs of students. Like those in charge of many organizations that evolve to meet new demands, well-meaning administrators and faculty members have put processes into place with an imperfect understanding of the user experience. Most campuses have unintentionally put the onus on the students to navigate the complexity of a college campus. When you start looking at problems from that perspective, design flaws leap out.

As consumers, we expect that retailers or service providers have designed the experience around the customer. We become frustrated when things are counterintuitive, bureaucratic, slow, difficult or painful. So why should we tolerate flawed processes that frustrate our students? If colleges and universities really want students to complete their degrees, why is it up to students to let the university know when they are ready to graduate? And why should the students then have to apply to graduate -- and often pay a fee?

Process mapping allows the university to identify and confront the roadblocks for students and then work to remove them, yet it also reveals where faculty members, advisers and administrators are encountering inefficiencies and unnecessary work.

In fact, some of my favorite examples of campus transformation began with process mapping.

Georgia State University has used process mapping to better understand how the university communicates with students, mapping out every email, letter and call that students receives from dozens of offices across campus from the time that students first apply through the end of their first semester. The results of the exercise -- showing an overwhelming stream of often repetitive, conflicting and uncoordinated messages -- inspired the university to better organize how it orients news students and how it explains the choices that they face.

Those insights, in turn, led to more substantive changes -- changes that helped them transform the institution into a national model for student success, eliminating race and income as a predictor of academic outcomes. For instance, university administrators saw how freshmen immediately upon enrolling were expected to make a choice between dozens and dozens of majors, an overwhelming and stressful experience with students too often feeling pressure to make ill-informed decisions. Instead, they paired down the initial choice into seven “metamajors,” or broader-themed categories of study, to give students an opportunity to explore and discover during their first year of college. That small shift has led to a decline of more than 30 percent in the number of changes in major among students at Georgia State -- saving students both time and money in earning their degrees.

Georgia State’s success inspired Michigan State University to bring together representatives from across the campus to map all the ways the university interacted with students from the time they were admitted to the end of the first semester. They discovered that each new student was being barraged with about 400 emails from admissions, financial aid, the registrar’s office, student life, housing and residence life, academic advisers, the student accounts office, academic colleges, and more. The process mapping team found messages that were redundant, that could have been delivered in a different format or that could have been delayed so that other, more critical communications would get noticed.

The campus was overwhelming new students with noise during the time when they really needed clear and thoughtful guidance. That was especially problematic for first-generation and low-income students, who often lack external support in navigating university processes.

The team at Michigan State immediately started work on identifying ways to streamline, prioritize and redesign their interaction with students to be particularly sensitive to the needs of low-income and first-generation students. Financial aid communications now take priority for new students, while notices about extracurricular activities like intramural sports or clubs can wait until students arrive on the campus.

In the past, students who ended up on academic probation at the end of their first semester would receive four different emails from four different people. Now, Michigan State sends one email with clear information about how the student should seek academic advising help and get financial aid questions answered. Viewing the institution through the eyes of the students has allowed Michigan State to find new ways to help students who are at risk of going off track just out of the gates.

Most higher education institutions can benefit from a similar exercise. I have never found a campus that is too self-aware of how they impact their students, faculty members and administrators. Process mapping takes very little time and no additional financial outlay. The team at Michigan State, for example, was able to convene over the course of a day to map out the various communications students were receiving and, in the following weeks, agree upon which messages would be prioritized in the admissions-to-enrollment process.

Process mapping isn’t limited to enrollment and admissions. Colleges and universities can also use process mapping to examine a wide variety of operational challenges, such as course scheduling bottlenecks, barriers to graduation or the delivery of nonacademic student support services. Process mapping can also help the university ensure that students from diverse backgrounds feel welcome and supported on the campus.

Change doesn’t have to be complicated. The harder we make it to change, the less likely it is to happen. If you are asking yourself where to start working to improve student success, a simple exercise like process mapping is the right answer.

Bridget Burns is the executive director of the University Innovation Alliance, a national consortium of large public research universities collaborating to improve outcomes for students across the socioeconomic spectrum through innovation, scale and diffusion of best practices.

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Small colleges face hurdles as they're pushed to change

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Speakers suggest areas to examine as small colleges try to change their business models.

Sustaining the liberal arts requires organizational restructuring (essay)

Over the last few years, there has been no shortage of news coverage and commentary remarking on the seemingly real or perhaps only greatly exaggerated death of the liberal arts in American higher education.

We are not alone in thinking that the debate about the relevance of the liberal arts is tired and simplistic. To our minds, the liberal arts are as relevant as ever -- as a means of enriching lives, developing engaged citizens and nurturing foundational professional skills.

But if the public, rightly or wrongly, is becoming increasingly skeptical of the value of the liberal arts -- and enrollment trends at certain institutions would suggest that they may be, at least in some measure -- then schools of liberal arts will have to accept some share of the blame themselves.

Undoubtedly, public pronouncements arguing that we need “more welders and less philosophers,” as former presidential candidate Marco Rubio claimed late last year, irk many in the liberal arts -- and not solely because of Rubio’s poor use of grammar. This notion that liberal arts graduates are terminally unemployable is achieving a kind of -- to borrow Stephen Colbert’s famous neologism -- truthiness. And that kind of misinformation can be particularly frustrating to faculty members and students who have devoted their energy and enthusiasm to these fields of study, and enjoyed successful careers as a result of it.

The fact is, as researchers in the field of employability will tell you, a great many organizations have a real interest in hiring college graduates possessing communication and reasoning skills blended with technical expertise and strong character. In an Inside Higher Ed commentary from early 2016, Burning Glass CEO Matthew Sigelman argued that his firm’s research on labor demand has shown that many of the fastest-growing jobs are hybrid in character, requiring “people who can bridge domains and synthesize ideas.” Few would argue that the liberal arts don’t have a contribution to make in producing these sorts of graduates.

Still, frustrating though they may be, news headlines and political commentary aren’t the real obstacles to sustaining the future of the liberal arts. That challenge has less to do with media perceptions or careless politicizing than with the traditional organizational structures and curricular approaches of schools of liberal arts themselves. Here’s what we mean.

Departmental structures can be inflexible and inhibit creative responses to changing market expectations. At a number of liberal arts institutions we work with, faculty express great interest in interdisciplinary work and other forms of innovation. In some respects they find organizational structures -- the proliferation of schools, departments, divisions, units -- just as frustrating and inhibiting as administrators do. But when faculty become uneasy with the tenor of the public debate about the contribution of the liberal arts and feel threatened, they often rely on these structures as a bulwark against change. Others may resist on principle any movement that might be perceived as moving in the direction of vocationalism or focusing on work readiness associated with linking the liberal arts to professional programs.

In both cases, the result can be the same: faculty hunker down. They look at the growth of faculty lines in engineering or business and argue that their departments would grow, too -- if only similar investments were made in their faculty. Of course, increasing capacity doesn’t automatically increase enrollments. Yet for those individuals, the fight for resources is viewed as a zero-sum game, and some faculty members and department chairs would seek to preserve the structures that they know rather than risk reorganizing in ways that merge departments or explicitly require collaboration with the professional disciplines -- even if such changes might deliver more value to students. But of course, such mergers and collaborations are possible where adjacent disciplines complement one another -- such as writing and English programs or communications and performing arts. Restructurings of these sorts can not only avoid unnecessary redundancies in staff positions and other organizational overhead, but also foster the development of a more contemporary curriculum and enrich the student experience.

Departmental structures can constrain the evolution and effectiveness of general-education curricula. As the volume of majors in the liberal arts disciplines continues to fluctuate, general education programs may be seen as an increasingly powerful mechanism to promote traditional liberal arts values. But they can also offer students new forms of interdisciplinary intellectual exposure via minors or other ways of bundling sequences of courses.

For departments with declining majors, general-education course enrollments are frequently seen by faculty as crucial evidence of their value. As a result, there is often resistance by faculty members and department chairs to restructuring general-education programs in ways that might deviate from the more immediately measurable performance models based on numbers of department majors -- even if such restructurings may lead to more relevant and flexible curricula for students. For example, while the contemporary student may derive significant value from experiential learning components and interdisciplinary capstone courses, their inclusion in general-education programs is often met with resistance by faculty as they fall outside the traditional disciplinary or departmental structure.

Departmental structures can necessitate organizational workarounds, such as the creation of interdisciplinary liberal arts centers or institutes, to find a home for innovation. While interdisciplinary centers or institutes can serve as vital catalysts for innovation and collaboration across the disciplines, merely establishing them will not necessarily overcome the force of decades of departmentally focused priorities. As a result, these interdisciplinary centers can sometimes evolve into isolated interdisciplinary silos. Indeed, the lack or perceived lack of incentives for faculty involvement, a misalignment with departmental promotional criteria and the absence of clear expectations with respect to the roles that particular departments or disciplines are meant to play in these centers can all contribute to their eventual marginalization and failure -- which can make it even more challenging to recruit and retain high-potential faculty. Paying lip service to interdisciplinarity isn’t sufficient. In fact, it just exacerbates tensions between units and can make numerous departments less productive. What’s required is a commitment to interdisciplinarity and the centers that promote it as hubs of cross-discipline engagement, for faculty and students alike.

Our view is that the liberal arts matter. Why? Because they prepare students to reason and solve problems, because they develop critical communication skills, and because they teach students how to engage in a process of discovery -- whether it be intellectual discovery, self-discovery or professional discovery. If schools of liberal arts put these same skills to work in examining their own efforts and organizational structures, the liberal arts might well flourish.

Such schools would be more apt to bring together data analytics and the study of literature, or revolutionize the way they think about the role and contribution of general-education programs, or promote liberal arts minors for engineers and biologists in lieu of fighting for more majors within the liberal arts. They might, in other words, rethink the longstanding organizational structures that have housed -- and for many years nurtured -- the liberal arts, but which have now begun to constrain and limit their impact.

Peter Stokes is a managing director and Chris Slatter is a manager in the higher education practice at Huron Consulting Group.

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Moody's: Grad Student Unionization 'Credit Negative'

Graduate student workers' newly won right to unionize at private universities is a ding on those institutions' credit, Moody's Investors Service said Thursday.

Moody's called last week's National Labor Relations Board ruling, which awarded the unionization rights, a credit negative. That means it is one of many credit factors affecting institutions but is not a change in any credit rating or outlook.

The ruling comes at a time of increased financial stress for institutions. Research funding costs are increasing, tuition prices are under pressure and endowments face declines in value, Moody's said. Graduate students are also becoming more important to higher education's business model. However, the ratings agency went on to note that large, research-intensive universities will be most affected by the ruling -- and those institutions tend to be wealthier and are best situated to absorb higher costs and wages from unionization.

Since most graduate student assistants are enrolled at public universities governed by state labor law and not covered under the ruling, the NLRB's decision affects fewer than 78,000 graduate assistants, Moody's estimated. It said about 40 percent of graduate assistants in private higher education are at just 10 universities: Boston, Carnegie Mellon, Columbia, Cornell, Harvard, Johns Hopkins, Stanford and Yale Universities, the Massachusetts Institute of Technology, and the University of Southern California. Increasing the average wage for graduate teaching assistants at those universities would cost each one between $7 million and $11 million annually, Moody's estimated. The increase would be the equivalent of less than 1 percent of each institution's operating expenses.

However, Moody's also pointed out that institutions more moderate in size and means will be pushed to boost their graduate assistant compensation to keep up with larger competitors.

"Increased graduate assistant compensation or a material change in workload could cause modest pressure on operating performance," Moody's wrote. "Since universities with large graduate populations tend to compete nationally, if not internationally, the actions of their peers will outweigh regional standards in shaping the potential financial effects."

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