Bacon's Rebellion

Democracy Thrives in Sunlight

Is a Reckoning Coming for the Management and Administrative Costs at Virginia’s State Colleges and Universities?

—

by

sherlockj
in , ,

UVa President James Ryan. $750,000 base salary. Courtesy of the University of Virginia

by James C. Sherlock

In 2015, Professor Paul Campos of the University of Colorado at Boulder wrote an op-ed for The New York Times that clarified for many a major issue in the rising costs of a college education — the exponential growth of the number and costs of administrators.

According to the Department of Education data, administrative positions at colleges and universities grew by 60 percent between 1993 and 2009, which Bloomberg reported was 10 times the rate of growth of tenured faculty positions.

Even more strikingly, an analysis by a professor at California Polytechnic University, Pomona, found that, while the total number of full-time faculty members in the C.S.U. system grew from 11,614 to 12,019 between 1975 and 2008, the total number of administrators grew from 3,800 to 12,183 — a 221 percent increase.

With inflation putting pressure on budgets, I hope Boards of Visitors are taking a hard look at reducing expenses before increasing tuitions.

I offer for consideration the expense classification matrix for the University of Virginia for FY 2021, the latest year available.

 

We see that instruction cost $450 million.

If we combine academic support and institutional support, we get $474 million, which thus seem like budget lines in which to look for savings.

Students at UVa are passing around an unsigned pamphlet demanding raises for faculty.

Recent, separate private correspondence with three different tenured UVa faculty members indicates that they would be very happy to see the administration slashed whether their own compensation is increased or not.

They generally feel both overwhelmed with and beyond tired of administration interference with teaching and research, including demands on their time for things they consider unproductive nonsense.

I doubt this is unique to UVa among our state schools.

The Governor should ensure that the schools and their auditors have standardized criteria for reporting expenses and ask each Board of Visitors for an annual report on management and administrative costs and plans to reduce them.

Share this article

ADVERTISEMENT

(comments below)

ADVERTISEMENT

(comments below)

Comments

42 responses to “Is a Reckoning Coming for the Management and Administrative Costs at Virginia’s State Colleges and Universities?”

  1. DJRippert Avatar
    DJRippert

    Colleges and universities are due for a comeuppance.

    Tuitions continue to rise much faster than inflation.

    Enrollment is falling.

    Interest rates are rising making borrowing for college more expensive.

    Big companies are dropping their hiring requirement for a four year degree.

    https://www.themadeinamericamovement.com/news/apple-ibm-and-google-no-longer-require-college-degrees-for-employees/

    While universities like UVa will have plenty of students for the foreseeable future, other Virginia based colleges and universities may not be so lucky.

    Marymount University in Arlington recently announced that 10 liberal arts majors would be dropped.

    I expect to see more college and university closures and mergers over the next few years.

    1. James McCarthy Avatar
      James McCarthy

      That’s odd about decreasing hiring requirements. The Natl Assn of Colleges and Employers reported on LinkedIn a 15% increase in college grad hiring. Likely another source may be found to project static college grad hiring. If Made in America is correct, what does that imply for VA’s efforts in workforce development?

  2. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    It is worth pointing out the amount of money involved: $3.7 billion. That includes the hospital. Since that brings in revenue, subtract those expenses and you have $1.9 billion for the University proper. Not all of that is state appropriations–a lot is foundation money and auxiliary money.

    There is no question that higher ed administration is bloated. I remember at least 20 years ago when I was walking down the corridor of VCU’s main administration building. I passed door after door labeled, “Assistant Dean of…”, Associate Dean of….” Deputy Associate Dean of….” etc. I wondered to myself , “What do all these people do?”

    Higher ed finances are byzantine. The most effective method of compelling higher ed to be more efficient is to provide additional state appropriations for salary increases and financial assistance and then freeze tuition and fees. That would force them to find savings internally.

    The picture of Ryan with his salary is a little misleading. He may get paid a $750,000 base salary, but only $212,324 of that in the current fiscal year is from the state general fund. The balance is from UVa. Foundation money.

    1. James McCarthy Avatar
      James McCarthy

      With two decades in higher education financial management, the finances are not very complicated. Institutions, however, have done a poor job of exposing their financial fabric to the public. Pie charts with $$$ and per cents of income and expense would be instructive for the public and legislators.

      1. f/k/a_tmtfairfax Avatar
        f/k/a_tmtfairfax

        Publish the ratios of instructors to staff by decade; the average change in compensation between instructors and staff; average class size by decade; increase in tuition versus increase in starting salaries for new graduates.

        1. James McCarthy Avatar
          James McCarthy

          Average class size is a non- starter as some courses are required while others elective. Starting salaries for new graduates is impacted by post grad decisions. Part-time and distance learning may also affect the ratios that you cite. Athletic programs and the like also affect the financial fabric. Staff may include trade folk responsible for buildings and grounds as well as campus police.

          1. f/k/a_tmtfairfax Avatar
            f/k/a_tmtfairfax

            Funny how the government is always pushing private industry to disclose information so that the public can make informed decisions. For example, the FCC recently adopted new rules requiring broadband providers to publish “Broadband Consumer Labels.” https://www.fcc.gov/broadbandlabels

            Your objections should be addressed in shaping the types of disclosures to be made. In some areas, say campus security, more expenditures may be welcomed by prospective students and parents. One could adjust starting salaries by excluding people going to work for public service entities, say the Peace Corps. More adjustments can be made over time. But there should be disclosures to the public.

            Some time ago, when computer use was growing and the number of support staff per professional/manager in companies and the federal government was decreasing, I noticed that Fairfax County Public Schools retained a high level of secretaries/administrative assistants/support staff. I sent an inquiry to the schools. The superintendent responded, saying it was school policy not to lay off staff absent a financial crisis. Like the Al Gore matter, this is anecdotal, but systematic. Government is a jobs program and operational inefficiency is acceptable.

      2. James C. Sherlock Avatar
        James C. Sherlock

        They publish, time late, a financial report like the one I linked.

        Few, especially in the General Assembly, read it because what is provided is not actionable information. I will provide a more detailed view of what I think is actionable information in another article.

        With your experience in the field, I would be happy to share a draft with you for your critique and corrections. If interested, contact Jim Bacon and have him send me your email address.

        1. James McCarthy Avatar
          James McCarthy

          If such graphic info and data were consistently published publicly, the impression that higher education finance is Byzantine could be diminished. Ensuring legislators read the material is a mountain of another order. I’m far too removed from my days in the ivory tower to be helpful in contemporary analysis.

          1. James C. Sherlock Avatar
            James C. Sherlock

            Honest question. Were you ever aware of a college or university whose management, administrative and academic personnel were required to use time cards and charge numbers to account for their time?

          2. James McCarthy Avatar
            James McCarthy

            You’ve chased me into left field. Have no idea to what you are referring.

          3. Lefty665 Avatar
            Lefty665

            Time tracking and cost allocation.

    2. James C. Sherlock Avatar
      James C. Sherlock

      Why does it matter where Ryan’s salary money comes from?

      Management and administration remain overhead costs to instruction and research, which are UVA’s products.

      It is not the position of president that is the subject here.

      1. M. Purdy Avatar
        M. Purdy

        “It is not the position of president that is the subject here.” Really? His picture and salary are featured prominently (and solely) right on the front of the post above the fold. Soooooo….yeah.

        1. James McCarthy Avatar
          James McCarthy

          Hey, hey!! There have been no articles in BR focused on the UVA Prez.

          1. M. Purdy Avatar
            M. Purdy

            “Whooooooo? Meeeeeee?” It’s just so dumb.

          2. James McCarthy Avatar
            James McCarthy

            It’s not fair insinuating or exposing hidden agendas. Never, never on BR.

  3. James McCarthy Avatar
    James McCarthy

    Across the nation, colleges and univs are in for a belt-tightening prospect. Student enrollments are dropping whether due to Covid or shrinking population cohort remains open. Rising costs affect student and institutional decision making. IMO, we must all weather these dynamics. Expenditure cuts may be necessary but likely counter productive. Carping about administrative over head is not helpful.

    1. James C. Sherlock Avatar
      James C. Sherlock

      If prices are increasing in the face of decreasing demand, as you accurately write, why are overhead cuts counterproductive?

      1. James McCarthy Avatar
        James McCarthy

        It’s getting boring responding to such deflections. I criticized complaints about administrative over head – not to the point of “overhead cuts (as) counterproductive. I did write “Expenditure cuts may be necessary.” Such reactive measures in my experience too often are counter productive. That is as measures while longer term dynamics are at work.

  4. Eric the half a troll Avatar
    Eric the half a troll

    “Recent, separate private correspondence with three different tenured UVa faculty members…”

    Well, can’t challenge those sources…

  5. LarrytheG Avatar
    LarrytheG

    It’s the smaller universities and colleges that are in deep doo doo.

    1. James McCarthy Avatar
      James McCarthy

      That is likely true b/c they do not have robust financial sources unless, of course, there is a sizable endowment or dynamic foundation raising funds privately.

    2. James C. Sherlock Avatar
      James C. Sherlock

      Exactly.

    3. James McCarthy Avatar
      James McCarthy

      “Smaller” is a relative proportion. See today’s NY Times article today on Valparaiso U at which enrollment declined by 39% from 2016 to a present 3,000. A proposal to sell off its valuable art works has met resistance.

      1. LarrytheG Avatar
        LarrytheG

        Yes… but “smaller” than most/many flagship/public institutions? maybe?

        Yes…. even institutions that might be several thousand, depending on their reputation
        and degree offerings… AND the thing that Sherlock might be missing is whether these
        smaller institutions are proportionally “bloated” similarly also? IOW, is the percent of “bloat” the same no matter the size?

        Is it a problem for ALL higher ed or just the biggie institutions?

        1. James McCarthy Avatar
          James McCarthy

          Bloat applied to UVA May be simply a meme, a shadow term for eliminating DEI. Note that the article focuses on expenditures not revenue strategies. Cut expenses a/k/a bloat. Focus on management and admin, no mention of faculty cuts in the face of declining enrollment. Don’t be fooled.
          When academic management sought to reduce buildings and grounds many years ago in NYC, the B&G staff were unable to replace toilet paper in faculty bathrooms. What’s bloat?

          1. LarrytheG Avatar
            LarrytheG

            ” a shadow term for eliminating DEI.” and the general “wokenization”…. etc…

  6. C Nesbit Avatar
    C Nesbit

    The most successful organizations are those with a relentless focus on serving customers. They structure jobs and processes to deliver the ultimate customer experience, not to serve the organization itself, or other external entities. When organizations begin focusing on internal matters, instead of customers and competition, they begin to atrophy. Competitors find new ways to service the customer. Meanwhile the bureaucracy focuses on servicing itself by adding layers which cause costs to rise with no commensurate increase in the customer experience. Ultimately the customer moves on and the organization dies unless it is subsidized by external actors much as the “too big to fail” banks were bailed out by the federal government during the 2008 financial crisis.

    The education system, medical services delivery system, and many government bureaucracies exhibit signs of the administrative bloat and loss of ultimate customer focus which kills unsubsidized companies in the private sector. As long as universities are propped up with direct and indirect government subsidies there is no incentive to become more efficient or more focused on providing the optimal educational experience for students. Education subsidies create dependence on government which in turn makes the government, not the student, the customer.

    Which is more important to the administrators of a university today, the failure of a single student or the acquisition of a government grant? To make the point clearer, would a professor seeking a grant turn down a student requesting time for extra help in order to devote that time to perfecting the grant application? Are university researchers today more concerned about following truth wherever it may lead, or serving the point of view of the big donors, corporations and government agencies providing grant money? When government bureaucrats shift their goal from promoting equality of opportunity to demanding equity of results, do university administrators also change how they administer the education of students? As long as government money is essential to the maintenance of the academic administrative bureaucracy, will the students or the administrative government bureaucracy be the primary customer of the modern university? How much of the growth of the administrative bureaucracy in higher eduction is due to serving the demands of the government bureaucracy versus enriching the academic experience of students?

    1. James C. Sherlock Avatar
      James C. Sherlock

      Exactly.

  7. James Wyatt Whitehead Avatar
    James Wyatt Whitehead

    I reckon they will all give themselves a big raise. That seems to be the way it works at these types of institutions.

  8. M. Purdy Avatar
    M. Purdy

    UVa is still quite affordable in-state even relative to other state schools. Furthermore, they have no shortage of funds to spend on top-tier talent–Ryan being one. If Virginia doesn’t want a flagship national university, then that’s one thing. If it wants one, then it has to allow UVa to pay for it. If it wants one, but doesn’t want to pay for it, let UVa go private. It would be a years-long process, but it currently only receives around 6% of the operating budget from the state. Win-win.

    1. WayneS Avatar
      WayneS

      UVa is still quite affordable in-state even relative to other state schools.

      http://www.collegefactual.com ranks UVA #1,926 out of 2,223 universities for value nationwide:

      “Based on our analysis of other colleges at similar price points, we believe University of Virginia – Main Campus is overpriced for the quality education it provides.”

      “On average, a bachelor’s degree from University of Virginia will cost you about $218,107.”

      They rank UVA in the top 5% in quality of education nationwide.

      ——————————————–

      As a point of comparison, Virginia Tech is ranked #720 out of 2,223 for value nationwide:

      “Virginia Tech is priced competitively when compared to other colleges of similar quality. Based on this information we believe it is a good price for the type of education provided.”

      “The average Virginia Tech student’s degree will cost an estimated $162,148.”

      They rank VT in the top 5% for quality of education nationwide.

      1. M. Purdy Avatar
        M. Purdy

        Literally never heard of that publication. UVa is a top-25 national university priced at ~$19K tuition in state. How many better deals are out there? https://news.virginia.edu/content/money-magazine-ranks-uva-no-3-best-value-nation

        1. James McCarthy Avatar
          James McCarthy

          It’s not a publication. Use the link to dig out the fact that CLL is a commercial service of Bright Hub, a privately held company located in Troy, NY. Make your own judgment.

          1. M. Purdy Avatar
            M. Purdy

            Ah, got it. Yeah, that makes more sense b/c they overstate the cost of UVa by a lot. But now I see why.

          2. James McCarthy Avatar
            James McCarthy

            It’s a pain but sometimes worth vetting linked/cited sources.

        2. James C. Sherlock Avatar
          James C. Sherlock

          Not sure what fight you are picking, Purdy. Is it your position that no efficiencies can be found in management and administration in the state’s colleges and universities?

          1. M. Purdy Avatar
            M. Purdy

            Not picking a fight, just saying that getting upset over high president and faculty salaries (leaving administrators aside, which I’m inclined to think are bloated beyond rationality) creates a tension with having a marquee university. You pay for talent; it’s how the market works, fellow free marketers! If you find that objectionable, there are other alternatives, e.g. don’t have a top-tier university, or let UVa go private. And somehow UVa has managed to keep its top educations insanely affordable with only 6% of state funding. So maybe they’re doing something right.

          2. James C. Sherlock Avatar
            James C. Sherlock

            Not the only state institution of higher learning.

          3. M. Purdy Avatar
            M. Purdy

            No, but it’s the one this blog like to focus on. It’s the one you and Bacon are alumni and critics of. And it’s the one whose president is featured prominently in the heading. Sooooo….yeah.

          4. James McCarthy Avatar
            James McCarthy

            More often than not, similar to virtually all organizations, efficiencies resulting in financial parameters are related to proportions – number of and salary of faculty; number of students and services (housing); energy and plant maintenance. Focusing on M& A tends to be myopic without an examination of income/revenue sources, e.g., fundraising, bequests and the relation of expenditures by function to income generation.

Leave a Reply

Read More