1 Today's Economy and the Reinvention of Higher Education: Leadership and Stewardship New Hampshire Women in Higher Education Leadership Spring Conference Helen Giles-Gee April 17, 2009

Overview Today’s Economy Economic Issues for Higher Education Principles Meta-analysis of Budget Strategies Experiences Needed Reinvention of Higher Education

Selected Factors Affecting the Economy Record mortgage failures Significant losses in banking, business, and industries Deep declines in bonds, equities and thus endowments Increased unemployment Decreased consumer trust and spending

All Sectors of Higher Education Affected Private Higher Education – –Ivy League – –Religious Public Higher Education – –Two-year – –Four-year

Public 4-year Revenue Sources (not including capital additions/deductions)

Major Budget Objects

Meta-Analysis of Economic Strategies Personnel Budget Reductions Capital Projects Enrollment Cost Containment Revenue Development Merger/Acquisition/Closing

Table 1: Actions Used or Will Use re: Staffing and Compensation-CUPA 2/09 (N>304) Executive Staffing – –Hiring freeze 29.5% – –Delayed Hiring 36.4% Executive Salaries – –Overall reduction in increase pool percentage 19.9% – –Wage freeze 25.2%

Table 1: Actions Used or Will Use re: Staffing and Compensation-CUPA 2/09 (N>304) Exempt FT Staffing – –Hiring freeze 34.5% – –Delayed Hiring 43.5% Exempt FT Salaries – –Overall reduction in increase pool% 21.6% – –Wage freeze 26.6%

Table 1: Actions Used or Will Use re: Staffing and Compensation-CUPA 2/09 (N>304) Non-Exempt FT Staffing – –Hiring freeze 34.8% – –Delayed Hiring 43.4% – –Overtime control 56.0% Non-Exempt FT Salaries – –Overall reduction in increase pool% 21.8% – –Wage freeze 26.9%

Table 1: Actions Used or Will Use re: Staffing and Compensation-CUPA 2/09 (N>304) FT Faculty Staffing – –Hiring freeze 19.0% – –Delayed Hiring 24.1% – –Phased retirement program 16.8% FT Faculty Salaries – –Overall reduction in increase pool % 19.0% – –Wage freeze 23.2%

Principles Shared Governance Communication Transparency Strategic Planning Advocacy Accountability Protect Core Areas

Shared Governance and the Budget Planning Council Budget and Resource Council Enrollment Management Task Force Human Resources Master Planning Council Sustainability Commission Vice President for Planning and Finance and Cost Center Managers Student Assembly Professional and Operating Staff Advisory Councils President’s Cabinet President

Communication: Loop Budget website Letters to the community via Open Forums Meetings of various committees Input from the campus community via website, forums, and

Protect Core Areas

Gaining Economic Experience Chairperson Staff: Chair of Cost Containment Dean Provost President Member of a College/Higher Education Community

Reinvention of Higher Education “No Frills” Education For-profit Entrepreneurship Collaboration Economic Development Globalization Public transformation/New fiscal models

Questions: Will this economy affect? Access to Education? External Accountability? Tenure? Presidential hires? The Physical Plant? Transfer? Diversity? Academic Quality?