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CONFERENCE FEATURE


























NEW FRONTIERS










Treading Water
The New Demographic World: In many regions of the
developed world, and specifcally across most of North For decades, colleges have heightened their efciency and
America, the number of traditional-aged students will be in uncovered new economies of scale in order to preserve their
steady decline for the next decade or more. (Tose hoping for traditional delivery models. Teir crews have been furiously
demographic turnaround must realize that all the 17-year-olds pumping out the bilge to avoid drawing too much water. Te
the world will see between now and 2034 have already been industrial age ushered in campus massifcation throughout
born.) Many institutions that have sustained their budgets the twentieth century, and scalable assembly-line approaches
through steady enrollment growth since the 1960s are now to lecture halls and multiple-choice exams. Institutions have
facing, or will soon face, a new reality: “peak campus” (Steele, applied increasingly sophisticated sofware tools to manage
2013). Unless your institution is fortunate enough to be located enrollment through predictive analytics, optimize classroom
in a center of youth migration or growth, fewer high school scheduling and consolidate course sections to minimize
graduates, more commuter and working students, and more expenses, and prioritize growing and proftable programs
online or hybrid programs will steadily result in plateauing or over those in decline. Like most sectors of the economy,
declining on-campus populations. Expectations of unending colleges have increasingly resorted to adjunct and contingent
growth are being met with a sometimes abrupt reality check. contract faculty, “the new faculty majority,” to reduce labor
Buffeted by Government Policy: In most jurisdictions, costs and increase fexibility for future program changes.
legislators have steadily reduced per-student funding of More and more institutions are moving away from traditional
public higher education for years (Olif, Palacios, Johnson, & incremental budget formulas, and replacing them with activity-
Leachman, 2013). Government debt to gross domestic product based, performance-based, or incentive-based budget models
(GDP) ratios among advanced economies have risen to levels that reward innovative and growing programs, schools, or
unprecedented since World War II, and it seems unlikely departments (e.g. CAUBO, 2016). Colleges have been fnding a
that reinvestment will occur in the foreseeable future (Kirby, vast range of new ways to outsource, collaborate, automate, and
2015). Increasingly, state and provincial funding comes with scale their operations to maintain viability.
strings attached, from burdensome reporting requirements to Offoading to Others: Institutions have been staying
key performance metrics. Te majority of US states have now afoat by ofoading the burden of non-core services to third
implemented performance-based funding models for higher parties, outsourcing food services, security, grounds keeping,
education, to some degree (NCSL, 2015). In New Zealand, maintenance, parking, residence management, English
the Tertiary Education Commission has even started to adopt language training, and much more to corporate partners who
“contestable provision” policies that amount to putting existing can deliver acceptable results at lower costs, or with less capital
higher education programs out to tender, and awarding them investment. Te largest such arrangements have created half-
to the public or private provider who ofers the best value (New billion-dollar contracts for 50 years of parking at Ohio State
Zealand, TEC, 2017). Colleges are jumping through more University (Pelletier, 2012); for landscaping, maintenance,
hoops, for less government funding, than ever.

LEADERSHIP Vol. 23.1 Spring/Summer 2017 25


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