Huron Education Releases Candid Q&A on University Budget Woes

Former University Executives Identify Key Stress Points for Institutions

CHICAGO--(EON: Enhanced Online News)--Institutions of higher education continue to face difficult financial challenges in reacting to the need to closely examine operations and strategy due to decreased federal and state support, flat to declining research funding, and a limited ability to increase tuition.

“Furthermore, higher education has become an easier political target than entitlements.”

Huron Education released a candid conversation entitled, “Public Universities: Fail to Plan, Plan to Fail” by managing directors and former university executives, John Curry and Bill Jenkins. Both agree that the current system is broken, but believe that universities can achieve their missions if they deliberately plan and strategically navigate this new environment.

“Not only is the current financial model broken, it’s going to stay broken and probably get worse. Most state revenues are still shrinking and will take years to reach previous highs,” said Bill Jenkins, managing director, Huron Education. “Furthermore, higher education has become an easier political target than entitlements.”

In 2011 alone, 19 percent of public and 15 percent of private institutions have planned for no growth or decreased revenue. Public universities are now prime targets for cuts -- deep slashes that tuition increases or even incremental cost-savings won’t solve. Given the dire financial circumstances the federal government and most states are facing, colleges and universities are seeing their funding cut, requiring them to take an in-depth look at their revenues and expenditures.

“While it seems that universities should try to run more like a business there are significant differences between universities and the public sector,” said John Curry, managing director, Huron Education. “Businesses are at liberty to cut non-profitable divisions if they are convinced such divisions can’t make money. Universities don’t and shouldn’t do that.”

Curry and Jenkins speak candidly in the Q&A, providing information about issues including:

• Why Raising Tuition Can’t Cover Costs
• How Mission-Based Institutions Can Run Like Businesses
• Where Public and Private University Management Differs
• What the New Public University Revenue Model Will Look Like
• When Top Public Institutions Will Look More like Private Universities

The Q&A briefing also details the best ways for universities to succeed in today’s climate, and recommends focusing on Five Key Points:

1. Align financial incentives to maximize revenues, reduce expenses and standardize business processes.

2. Determine how to better understand costs so leadership can determine if past and current allocations reflect future priorities.

3. Model and test scenarios to understand what the largest revenue items and spend categories are and why.

4. Think and act strategically rather than tactically when facing and addressing a current budget crisis. How you cut costs should be as strategic as how you grow.

5. Analyze, plan and stress-test the balance sheet. Failure to do this has gotten many states and universities in today’s financial troubles.

The full Huron Education Q&A Briefing is available at: http://www.huronconsultinggroup.com/researchdetails.aspx?articleId=2965

If you are interested in speaking with Curry, Jenkins, or another one of Huron Education’s experts, please contact:

Jennifer Frost Hennagir

312-880-3260

[e-mail]

Jenna Nichols

312-880-5693

[e-mail]

About Huron Education

Huron Education is the premier provider serving the unique needs of the higher education industry. Our team of professionals, each with extensive knowledge and experience in the business of higher education and academic medical centers, delivers comprehensive services to the industry and partners with institutions to improve business performance across the enterprise. Our professionals draw from their experience working in the strategic, financial, operational, and regulatory aspects of higher education to develop and implement the most effective consulting and software solutions. Huron Education has helped more than 90 of the nation’s top 100 research institutions improve their performance so they can continue their traditions of extraordinary achievement

About Huron Consulting Group

Huron Consulting Group helps clients in diverse industries improve performance, comply with complex regulations, reduce costs, recover from distress, leverage technology, and stimulate growth. The Company teams with its clients to deliver sustainable and measurable results. Huron provides services to a wide variety of both financially sound and distressed organizations, including healthcare organizations, Fortune 500 companies, leading academic institutions, medium-sized businesses, and the law firms that represent these various organizations. Learn more at www.huronconsultinggroup.com.