Energy costs are up.
The state is projecting a 200 million dollar revenue shortfall.
A new report predicts the pool of college-age students from New England is shrinking.
And then there’s always increasing healthcare costs.
New Hampshire Public Radio’s Dan Gorenstein reports, you put it all together and colleges and universities in the state are saying it could mean big tuition hikes are coming.
None of the financial pressures colleges and universities are facing right now surprise Tom Horgan.
Horgan is president of the New Hampshire College and University Council, a group that promotes public and private schools in the state.
What is unusual, says Horgan is that all these financial pressures are coming at the same time- making for the proverbial ‘perfect storm.’
19:37 we’ve had economic downturns in the past. We’ve had demographic downturns in the past. But I think there is a case to be made it may be different this time...The economic pressures on the institutions are tremendous.
Horgan says one factor that’s different right now is that the federal government has reduced financial grants.
On top of that, he says starting next year, New England as a region- will begin to see a shrinking pool of kids who graduate from high school.
That means public and private colleges and universities are going to be fiercely competing for bodies.
The public schools will be hunting for out-of-state students who subsidize the in-state populations.
And Horgan says the small private schools aren’t in a position to lose too many people.
21:57...those students are paying $25,000-30,000 in tuition, that’s a huge hit towards their bottom line and their ability to operate. And so the real concern is, is it sustainable for a period of 4-5 years...
20:42 the truth is sometimes particularly small private colleges do close. And we’ve seen that. We’ve seen Notre Dame closed, Castle College closed. Nathaniel Hawthorne College closed....it’s not an unknown phenomenon.
Traditionally, one reliable way schools have weathered bad financial times is by boosting tuition.
But administrators are aware that’s not a fool-proof solution.
In just the past five years at UNH, for example, the overall costs for in-staters has gone from about $15,000 to over $20,000- making it one of the most expensive state schools nationwide.
The cost of UNH is projected to increase $1000 this year.
University System of New Hampshire Vice Chancellor Ed MacKay says Plymouth State, Keene St. UNH and Granite State College have to look elsewhere to address rising costs.
One step is to launch aggressive fundraising campaigns over the next several years.
But MacKay says some other changes may be more painful.
9:04 we can’t afford to be all things to all people. and we are committeed to providing high quality programs in whatever we offer....if we are not able to offer high quality program, that might be one of the strategies we employ to reduce the scope of the programs, but ensure the ones we do offer are attractive.
If college prices climb even faster than before than Tara Payne predicts families are really going to start questioning its value.
Payne works for the New Hampshire Higher Education Assistance Foundation, or NHHEAF.
7:51 a lot of people have always said by going to school you are guaranteeing your financial future. And in this economy people are feeling so crunched, parents who have gone to school are saying maybe you should go to work, and take classes part time, maybe you shouldn’t live on campus and pay $11,000 for that. Maybe you should stay home and commute.
Even though the state significantly increased its contributions to higher education in the last biennium, New Hampshire still ranks last in the nation when it comes to support for education.
Lawmakers would have to increase its expenditures by 40% just to rank 49th.
But with an estimated 200 million dollar budget shortfall, chances the state will kick in loads of extra cash for the university and community college systems are slim.
For NHPR News, I’m DG.
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