Did Reduced State Higher Education Funding Post-Recession Affect Business Summer School Programs?
Keywords:
Faculty compensation, financial crisis, higher education funding, public policy, summer school compensation, summer classesAbstract
After the final crisis in the late 2000s, universities were forced to find alternate funding sources to deal with budget deficits. Many universities looked at summer school programs as one option. This study focuses on how one College of Business and its University dealt with the issue. In our financial model, we incorporated tuition increases, a 28 percent tax on salaries and benefits, increases in faculty base pay, and other charges added by the University and its College of Business. The College of Business faculty’s summer school salaries and benefits represented 68.5 percent of the total tuition revenue generated in 2009 but dropped to 45.1 percent in 2018. The University’s (College of Business) portion went from 23.3 (8.2) percent to 30.1 (24.8) percent in 2018. Total faculty summer school pay negatively affected the accounting discipline more than the other areas in the College of Business. The accounting discipline experienced a 66.13 reduction in summer student credit hours from 2008 to 2018. Finally, the College of Business summer programs were negatively impacted more than the other colleges at the University.
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