Strategies for Colleges to Cut Costs During the Pandemic

The financial strain on colleges and universities due to the pandemic has necessitated a reevaluation of operational budgets. The most feasible and often the only practical approach is to reduce costs associated with non-mandatory student-facing services. While many essential services are mandated by law, there is still room for cost savings in certain areas. This article explores various strategies colleges can implement to manage their finances amidst the pandemic.

Reducing Non-Mandatory Student-Facing Services

One of the key strategies is to cut services that are not required by law or are not mandated. Many non-student-facing services, such as compliance offices, programs related to ADA (Americans with Disabilities Act), institutional research not directly tied to faculty research, and Title IX programs, are legally bound and cannot be easily reduced. However, a number of student-facing programs can be adjusted. These include counseling services, faculty academic programs, and various support programs for students.

Examples of Cost-Cutting Measures

Athletic Programs and Facilities

Several athletic programs and their associated facilities, staff, and maintenance costs have been among the hardest hit. During the pandemic, many colleges have had to furlough staff and cut back on operations. While this has reduced immediate costs, the long-term financial burden remains due to ongoing maintenance, energy costs, and potential bond debt.

Housing and Food Services

Similar cost-saving measures have been implemented in housing and food services. Staff furloughs have helped reduce payroll expenses, but the ongoing operation of these facilities, including maintenance, utility bills, and other operational costs, continues to strain college budgets.

Driver of Cost Increases During the Pandemic

While many people believe that college costs have risen dramatically due to unnecessary “luxury” spending, the reality is more complex. The majority of cost increases are linked to healthcare expenses and compliance mandates.

The ADA (Americans with Disabilities Act), Clery Act, and Title IX all contribute to significant staffing increases and operational costs. These mandates require additional resources to ensure compliance and support, contributing to the financial pressures faced by institutions.

Conclusion

In conclusion, while the pandemic has presented significant challenges to colleges and universities, strategic cost-cutting measures can help manage finances. By focusing on reducing non-mandatory student-facing services, institutions can find ways to streamline operations without compromising on essential educational programs. The importance of ongoing compliance and support programs, however, remains critical and cannot be disregarded.