Universities and Challenging Economics
We all know that many universities have been stressed since the economic downturn of 2008. Many face declining enrollment, high debt, deferred maintenance, and inadequate endowments.
But shockwaves went through the university academic world recently when Sweet Briar College announced that it will shut its doors at the end of this academic year. Despite an endowment of around $90 million, they recognized that they were headed the wrong way.
Paul G. Rice, the chairman of the board, said he knew some would question their decision. But he responded: “We have moral and legal obligations to our students and faculties and to our staff and to our alumnae. If you take up this decision too late, you won’t be able to meet those obligations. People will carve up what’s left—and it will not be orderly, nor fair.”
One person commented about the closing of this 700-student college: “As higher education analyst Kenny Rogers once remarked, ‘You gotta know when to hold ’em, know when to fold ’em, know when to walk away, and know when to run.'”
It’s a challenging time to be at the helm of any university; but I’m thinking especially of the challenges of those schools associated with Churches of Christ. Imagine the challenge of maintaining student enrollment and raising funds among a group that is in long, slow decline.
Here are the current (2013) endowments as listed on Wikipedia or on the US News & World Report university website:
Pepperdine – $716 million
Abilene Christian – $331 million
Harding – $105 million
Lipscomb – $62 million
Oklahoma Christian – $59 million
Freed-Hardeman – $43 million
Faulkner – $15 million (2012)
Lubbock Christian – $14 million
York – $10 million
Ohio Valley – $1.4 million
Rochester College – not listed
Southwestern Christian – not listed
Historically, these universities—along with amazing campus ministries at many other schools—have been so important to Churches of Christ. But the challenges facing them are huge! (Keep in mind that these aren’t the only numbers that matter when predicting future viability. E.g., endowment-per-student is probably more important than endowment size itself.)
This is the place in a blog where a solution would be really nice. Of course, this is above my pay grade. But given the challenges facing universities everywhere, it would be good to invest prayer, encouragement, and $$ in their work.