In this past week the Association has discussed again the potential of the state’s budget shortfall in higher ed and how the new administration policy on student loans may negatively affect higher learning institutions in the US. Based on extensive used of data and analytical analyses, AAEA has hypothesized that structural changes occurred on both demand and supply sides, the BAU mindset along with the new policy development on higher ed will add the risk of US colleges to go under.  This morning, we learned that, one of the oldest systems in the state higher ed has announced its plan to merge institutions that offer the 2-year programs or Associate degrees with 4-year higher learning institutions in the State.  In the past years, the Association has discussed this potential, and now one can see the many predictions based on IRI Education Analytics have become a reality.  The WI’s plan to merge the institutions under its system is significant for 2 main reasons.  One, the institutions are belong to the state which theoretically will have more resource/financial support from the tax payers’ money.  Two, the merger occurs at the state level, and not at the B2B level., i.e., between or among certain institutions, but state-wide.

If this has happened in the state of WI, it could happen in any other states.  Let us do some analytical thoughts here.  What kind of symptoms that have happened in WI preceded the merger plan?  WI is one of the States in the country that has more higher ed organizations than in some other states.  Therefore, there will be a clear excess supply for higher ed services, where demand cannot grow fast enough to keep up with it.  There is a disequilibrium in the whole system of higher learning in this state (actually in the whole US).  With this hint, the Association hopes that the readers can do their own analyses and come out with the answers on their own questions.  Otherwise, contact us for more info.