1. Kaplan University LS 516 Unit 3 Town Hall John Gray jpgray@kaplan.edujpgray@kaplan.edu

2. LS 516 Are there questions as we begin? Feel free to email at any time as the course moves along! jpgray@kaplan.edu Tonight we turn to state budget considerations and the funding of state colleges and universities.

3. LS 516 Almost all states have budget problems today. Operating state owned colleges and universities is very expensive. Only North Dakota, Alaska and a few other states are not currently in a state budget crisis. Also, operating professional schools, especially medical schools, is very expensive.

4. LS 516 We mentioned Alaska as a state without a major budget crisis. Does anyone know how many medical and law schools there are in Alaska? Not having these kinds of schools saves the taxpayers money, but is there a negative to the absence of these schools?

5. LS 516 The following states do not have medical schools in them: Delaware, Wyoming, Alaska, Montana, and Idaho Some other states have a medical school in them, but it is private, not state owned, and not part of the state budget. For example, New Hampshire has Dartmouth Medical School, the only medical school in the state, but it is not state owned. It was founded in 1797 and is a private institution. Could part of the answer be encouraging the development of more private schools? Alaska is the only state without a law school. Some states do have only private law schools in them, like Vermont, which has only one law school and it is private, not state funded.

6. What can be done about the present budget crisis on the state level? How should state-supported colleges and universities respond to the current financial crisis? Should they “lay off” faculty? Why or why not? Discuss “teach out” programs. If layoffs are to occur, how are determinations to be made as to those to layoff? What are the costs associated with faculty layoffs? What about long term contracts that some faculty hold? Shall we buy them out if their department is disbanded? In some states, like Connecticut, the state college and university faculty members work under a union contract. What issues arise when dealing with unionized employees who have a collective contract stretching forward for two to three years?

7. Should state colleges cancel athletic events and abolish some sports teams? Most college teams, other than football and a few others at large universities, cost more to operate than they generate in revenue. Do these teams exist for some non-financial reasons? Would there be non-financial costs associated with the abolition of some teams?

8. How should colleges and universities proceed? What if they decide to “lay off” teaching staff and make a mistake costing millions? Who pays for the mistake? Most administrators in colleges do not work at the same institution nearly as long as do the faculty. Are there dangers associated with administrators who may only be with an institution for five or six years making decisions that will impact future decades?

9. When dealing with any budget difficulty, on any level, what factors need to be considered? What is the impact if costs are cut? Does announcement of a budget cut influence donors? Many large state universities have dozens of people working in “development” or “advancement” offices to raise money for their institution. Are existing facilities being used to maximum benefit?

10. Discuss ways to reduce expenses: In the south, turning off utilities for two or more weeks when school is out in December. Moving summer classes to a few buildings to air condition and leave air conditioning off in buildings that are not used in the summers. How about teaching more online classes? How could that reduce expenses for some state schools?

11. State budgets are about politics too. What political factors might enter into a decision about which programs to eliminate at which state universities? Remember, many of the legislators may be graduates of particular state schools in the states that they now serve in the legislature.

12. Questions/Comments/Thanks, JG