To understand the wretched state of financial affairs at many of the nation’s public colleges and universities, one need look no further than The Prairie State.
Illinois is widely considered the worst-run state in the U.S. Crippling pension obligations, $150+ billion in debt and unpaid bills, deeply divided political leadership, the nation’s highest property taxes, all-time-high net out-migration population (105,217 in 2015), and, most alarming, a nearly two-year budget stalemate that has kept public and private businesses and institutions on edge. Sitting on $26 billion of outstanding general obligation bonds, Illinois claims the lowest credit rating among the states—BBB (Fitch Ratings), just two notches above the junk level—and, based on its present course, debt obligations are only going to worsen in the coming years.
The state’s public universities and colleges have been among the hardest hit by the budget impasse, losing (temporarily) as much as a third of their operating budget—all while dealing with flat or declining enrollment numbers. Illinois’ political and fiscal mess has left these institutions—especially the smaller, regional schools that can’t lean on private donors or sizable endowments to get by—gasping for air.
How can public institutions expect to survive and thrive in this turbulent environment? The answer, for one school anyways, is to think and act like entrepreneurs, to bypass the traditional funding and operational models—to escape forward.
Michael Amiridis, Chancellor of the University of Illinois at Chicago—one of just four public universities in the state that has seen enrollment grow in recent years—coined the term when describing the school’s strategies for growth. They include a mix of belt-tightening tactics—including reorganizing internal operations to improve efficiencies and reduce costs—and creative public-private partnerships, not only for capital infrastructure, but also for vital operations areas, like international student recruiting and online degree program delivery.
“We are using private capital to build the necessary infrastructure, whether it is human services, such as a global network of student recruiters, or capital projects, such as a new complex including dormitories and classrooms,” Amiridis wrote in a April 13 letter to Crain’s Chicago Business. He says the school is looking to create “reliable revenue streams” through infrastructure projects that offer a solid ROI and that will payoff for years to come.
To be sure, not all public schools face such chaos. Illinois offers the most extreme case. But enterprising institutions like UIC offer a path forward during an era when state and local government budgets across the nation are under heavy scrutiny. Colleges and universities would be wise not to expect a windfall of public funds anytime soon. Escape forward!
Related Stories
University Buildings | Jul 14, 2020
Cornell College partners with Johnson Controls to improve campus energy efficiency
The plan will reduce the college’s energy usage by 20%.
University Buildings | Jun 3, 2020
Renovation can turn older university buildings into high-performing labs
David Miller of BSALifeStructures offers technical advice on renovation of college and university laboratories and scientific research facilities.
University Buildings | Jun 2, 2020
COVID-19 and teaching the next generation of nurses
COVID-19 hasn’t just upended healthcare delivery, the workplace, and all levels of education – the economic toll is still being realized – and capital projects on college and university campuses will inevitably be impacted as public and privately funded projects adjust to the budget crunch.
University Buildings | May 20, 2020
JCJ Architecture, Moody Nolan complete UCONN's Student Recreation Center
The project sits at the center of the Storrs campus.
University Buildings | May 19, 2020
Clemson's new Outdoor Education Center uses a Mass Timber Structural System
Cooper Carry designed the project.
University Buildings | Apr 29, 2020
Dixie State University's new Human Performance Center
Hastings+Chivetta designed the project.
Coronavirus | Apr 10, 2020
COVID-19: Converting existing hospitals, hotels, convention centers, and other alternate care sites for coronavirus patients
COVID-19: Converting existing unused or underused hospitals, hotels, convention centers, and other alternate care sites for coronavirus patients
University Buildings | Apr 9, 2020
Designing for the next generation of student life: Academically aligned
Since many academic departments have been concentrated in their own buildings or portions of campus, bringing these disciplines into a shared facility is fairly new territory.
Coronavirus | Mar 30, 2020
Learning from covid-19: Campuses are poised to help students be happier
Overcoming isolation isn’t just about the technological face to face, it is about finding meaningful connection and “togetherness”.
University Buildings | Mar 26, 2020
How to convert college dorms to support the coronavirus crisis
While student dormitories are well-suited to certain alternate healthcare uses — from housing clinical staff to treating low-acuity patients — there are important elements to consider when exploring how to convert them for coronavirus treatment.