A survey carried out by The Chronicle in conjunction with Moody鈥檚 Investor Service shows college CFO鈥檚 are about future economic prospects for their institutions. The survey included 480 responses from CFO鈥檚 of public and private four-year and public two-year, nonprofit institutions. In the face of slow economic recovery from the recession, 32 percent of all CFO鈥檚 reported being more optimistic about the general U.S. economy, and 39 percent felt more optimistic about the financial prospects of their own institutions than they did a year ago.聽 Among聽 public four-year CFO鈥檚, these percentages were markedly higher, with 42 percent more optimistic in general and 45 percent more optimistic for their specific institution. Further highlights from the report included:
- Overall, 60 percent of CFO鈥檚 claimed further layoffs in 2011/12 were 鈥渧ery unlikely,鈥� though 19 percent of public four-year CFO鈥檚 said layoffs were still 鈥渧ery likely鈥�
- Very few CFO鈥檚 are considering furloughs to cut costs, with 79 percent claiming they are 鈥渧ery unlikely鈥�
- Public four-year CFO鈥檚 are about evenly split about salary freezes, with 45 percent planning to implement them, and 43 percent not planning to use this cost-cutting measure
- 18 percent of public-four year institutions reported increasing tuition by 10 percent or more in the face of steep cuts in state support
Despite the slow growth of the economy and high unemployment, some economic indicators are proving encouraging to higher education institutions鈥攍ow interest rates facilitate borrowing, the stock market is up, and demand is higher than ever (83 percent of public-four years reported meeting or exceeding their enrollment targets this year). Additionally, philanthropic support is still a major component of university budgets, and most institutions plan to keep it that way, with only 12 percent of CFO鈥檚 planning to lower their annual giving goals.
Another survey by showed college business officers a bit more optimistic.聽 52 percent of the business officers surveyed claimed their institutions were in good financial health, and 17 percent asserted they were in excellent health. Though most see no immediate financial emergency, 66 percent believe that potential cuts in core state funding or operating support would have a major impact on their institution鈥檚 quality. As in the 颁丑谤辞苍颈肠濒别鈥檚 survey, most cited securing higher enrollment and more philanthropic support as being integral to future funding. Interestingly, 27 percent claimed they would have to lay off employees in the coming year鈥攁s opposed to 19 percent in the 颁丑谤辞苍颈肠濒别鈥檚 survey.
Please follow the hyperlinks to read the full and , as well as the and of their results.