Tag: Fiscal deficits

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Understanding “Why College?” Is More Important Than Ever

On May 11, administrators at Northwestern University, a 169 year old institution, ranked #9 National University according to US News & World Report with a $10.8 Billion endowment fund, announced expense reductions, including: furloughing 250 staff, halting hiring, suspending contributions to pensions, as well as cutting salaries for university administrators. For the second year in …

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Governor Newsom Proposes $1 Billion Cut to California Community Colleges

Last Thursday, May 14, California Governor Newsom announced 2020-21 budget revisions, including cuts to higher education, given the projected $54 billion loss of state revenues. Although he proposes a $376 million cut to the University of California (UC) system affecting 285,000 students and a $404 million cut affecting 500,000 California State University (CSU) students, the …

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Educational Investing Quagmire

As state revenues shrink, the subsidies to public K-12 schools and higher education systems will shrink proportionately, effectively increasing the (or likelihood of) fiscal deficits for educational institutions. In a recent Bloomberg News article discussing the economic state of affairs in California, the fifth largest state economy in the United States:  California Governor Gavin Newsom …