In the past a couple of weeks, the Association has discussed the possible of further merger, strategic alliance and stream-lining of state owned higher ed institutions into one, and more efficient system. For example, if the State has 13 community colleges, then these institutions will be managed by one single entity. Merging 12 community colleges idea in the state of CT idea was discussed recently. After the state of CT, which state will follow suit? NC has 58 Community Colleges, therefore, the saving will even greater in this state.
For states that have applied the Performance Based Funding, such as Florida, this can well pave the way, but with a bit different variant. It may start with those institutions in the “Purple” group such as Pensacola and Polk State College. This even put more pressure for each individual institution to perform better? Perhaps, through rigorous applications of IRI analytics?
Slimmed down idea is not new at all, and it supposed to be done years ago to reduce the students’ financial burdens. For example, states may have the so-called System Office which may have managed certain areas of the institution such as federal reporting requirements. The state of Missouri has managed the IPEDS annual reporting for schools under its system. Therefore, the idea of expanding the roles of the System Office to manage daily operation of an individual unit can be done, both in theory or in practice. This surely will help reduce the redundant operational cost that may save the tax payers’ money. If a System is managing 13 institutions under its wing, then at the operational level, theoretically speaking, it may only need one president. Thus, eliminate 12 others. If on average the president’s salary is $100K (by the way, this is way to conservative number), then $1.2 million will be saved from only one position. Money saved can then be used to lower the tuition. Therefore, students may only need to pay significantly low cost of education, which may lead to lower student loan debts.