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
| Jun 12, 2014
Austrian university develops 'inflatable' concrete dome method
Constructing a concrete dome is a costly process, but this may change soon. A team from the Vienna University of Technology has developed a method that allows concrete domes to form with the use of air and steel cables instead of expensive, timber supporting structures.
| Jun 11, 2014
5 ways Herman Miller's new office concept rethinks the traditional workplace
Today's technologies allow us to work anywhere. So why come to an office at all? Herman Miller has an answer.
| Jun 9, 2014
6 design strategies for integrating living and learning on campus
Higher education is rapidly evolving. As we use planning and design to help our clients navigate major shifts in culture, technology, and funding, it is essential to focus on strategies that help foster an education that is relevant after graduation. One way to promote relevance is to strengthen the bond between academic disciplines and the campus residential life experience.
| May 29, 2014
7 cost-effective ways to make U.S. infrastructure more resilient
Moving critical elements to higher ground and designing for longer lifespans are just some of the ways cities and governments can make infrastructure more resilient to natural disasters and climate change, writes Richard Cavallaro, President of Skanska USA Civil.
Sponsored | | May 27, 2014
Grim Hall opens the door to fire safety with fire-rated ceramic glass
For the renovation of Lincoln University’s Grim Hall life sciences building into a state-of-the-art computer facility, Tevebaugh Associates worked to provide students and faculty with improved life safety protection. Updating the 1925-era facility's fire-rated doors was an important component of the project.
| May 20, 2014
Kinetic Architecture: New book explores innovations in active façades
The book, co-authored by Arup's Russell Fortmeyer, illustrates the various ways architects, consultants, and engineers approach energy and comfort by manipulating air, water, and light through the layers of passive and active building envelope systems.
| May 19, 2014
What can architects learn from nature’s 3.8 billion years of experience?
In a new report, HOK and Biomimicry 3.8 partnered to study how lessons from the temperate broadleaf forest biome, which houses many of the world’s largest population centers, can inform the design of the built environment.
| May 13, 2014
19 industry groups team to promote resilient planning and building materials
The industry associations, with more than 700,000 members generating almost $1 trillion in GDP, have issued a joint statement on resilience, pushing design and building solutions for disaster mitigation.
| May 11, 2014
Final call for entries: 2014 Giants 300 survey
BD+C's 2014 Giants 300 survey forms are due Wednesday, May 21. Survey results will be published in our July 2014 issue. The annual Giants 300 Report ranks the top AEC firms in commercial construction, by revenue.
| May 10, 2014
How your firm can gain an edge on university projects
Top administrators from five major universities describe how they are optimizing value on capital expenditures, financing, and design trends—and how their AEC partners can better serve them and other academic clients.
