CFO survey reveals doubts about financial sustainability — from by Doug Lederman

Excerpt (emphasis DSC):

But what do those with the closest eyes on their own institutions’ bottom lines — chief college and university business officers — think? Turns out they’re not particularly upbeat, either — about their own colleges’ futures or the higher education landscape more generally.

In a new survey by Inside Higher Ed and Gallup, barely a quarter of campus chief financial officers (27 percent) express strong confidence in the viability of their institution’s financial model over five years, and that number drops in half (to 13 percent) when they are asked to look out over a 10-year horizon.

And more than 6 in 10 CFOs disagree or strongly disagree with the statement that “reports that a significant number of higher education institutions are facing existential financial crisis are overblown.”

“This is a ‘Houston, we have a  problem’ report,” says Jane Wellman, a higher education finance expert. “People who know what they’re talking about think we have a problem down the road if some things don’t get fixed.”





From DSC:
There is danger in the status quo. What further proof do folks need!?! The monkey needs to move onto the back of those who cling to the status quo — they should defend why things shouldn’t change; and after that explanation is done, they can move on to explaining to people how students and their families will pay for college 5-10 years from now. Good luck with that.


Also related/see:

Struggling Thunderbird Business School Finds a For-Profit Lifeline — from by Melissa Korn
School takes drastic step to stay afloat


The Thunderbird School of Global Management, one of the world’s top-ranked business schools, is selling its campus to a for-profit college operator as part of a last-ditch effort to bolster its finances as more people question the value of an M.B.A.

The partnership with Laureate Education Inc. pushed at least two board members to resign in protest last week and angered pockets of its 40,000-person alumni community. Administrators and other insiders said Thunderbird needed to take a drastic step in order to stay afloat.