EduMusings

HBCUs Dealing with Financial Crisis

Friday, Aug 14, 2009

While most educational institutions have been hard hit by the recession, few have felt the burden more than historically black colleges and universities. According to a report this week by CNN, "Many black colleges expect enrollment rates to keep shrinking as families and students struggle in the economic downturn."

The report notes that while HBCUs may feel the squeeze even more when the College Cost Reduction and Access Act ends in May 2010. "We are under resourced," Clark Atlanta University President Carlton Brown said. "We try to keep our costs as low as possible. That means that our margins are always very tight."

Below is a clip from the report:

With retention rates that are already below the national average, the topic is at the forefront of the discussion at many HBCUs around the country.

As reported earlier this Summer by Diverse Issues in Higher Education, HBCUs face unparalleled challenges. The task at hand is one familiar to many...staying afloat economically while staying true to the institution's mission. The June issue of Diverse noted about HBCUs, "The public institutions are grappling with reductions in state and federal funding that have necessitated drastic adjustments in their budgets. The private institutions are experiencing significant declines in corporate and private giving. All are faced with intense competition from majority institutions for the top students, staff and faculty. Regardless of economic constraints, they say a focus on low-income students will continue."

Many view technology as being a key component to staying competitive. Dr. James Ammons, president of Florida A&M University, was quoted in the piece as saying, "Technology is evolving so quickly, it requires a huge investment to make sure we have updates, because the old versions are not supported by the vendors who sell these products. Being able to leverage technology across the university is so important now in order to attract young people, and it’s important to have environments where they feel comfort and at home.”

We think Ammons may be on to something.  While technology certainly is not the only answer obviously, making wise technology decisions could help many institutions cut costs and boost their bottom line, which is critical when dealing with razor-thin margins.

 

Interesting follow up by the Washington Post on the relationship between HBCUs and the Federal Government:

Leslie Baskerville, executive director of the National Association for Equal Opportunities in Higher Education. said that the conference couldn’t have come at a more important time because the White House needs to understand what HBCUs bring to the table.

“HBCUs are the economic engines in their communities,” Baskerville said. “HBCUs are a $10 billion business. HBCUs have 184,000 employees, making them the 22nd largest employer in the nation. We graduate 70 percent of the African American engineers, 60 percent of the health professionals and 50 percent of all the African American teachers.”

by Dan Obregon,
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