DOCUMENT RESUME HE 004 818 TITLE Private Higher Education ... DOCUMENT RESUME ED 083 942 HE 004 818

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Text of DOCUMENT RESUME HE 004 818 TITLE Private Higher Education ... DOCUMENT RESUME ED 083 942 HE 004 818

  • DOCUMENT RESUME

    ED 083 942 HE 004 818

    TITLE Private Higher Education in Maryland: A Report Concerning the Financial Condition of Private Higher Education in Maryland and the State's Relationship to these Institutions to the Govenor, the General Assembly, and the Maryland Council for Higher Education.

    INSTITUTION Maryland Council for Higher Education, Annapolis. PUB DATE Jun 73 NOTE 156p.

    EDRS PRICE DESCRIPTORS

    IDENTIFIERS

    ABSTRACT

    MF-$0.65 HC-$6.58 Educational Economics; *Educational Finance; *Higher Education; *Private Colleges; *Private Schools; Research Projects; State Action; *State Aid *Maryland

    This document reports a study of the financial viability of private institutions of higher education in Maryland. Study findings indicated that the present level and form of State assistance is not adequate in terms of the private institution's needs and that both should be altered. Also an ongoing aid program should be developed which might more adequately preserve the viability of these institutions. Recommendations suggest the amount of annual assistance be computed by multiplying $243 by the fall semester Full Time Equivalent enrollment at private institutions of higher education and accumulatively adjusting the $243 yearly after fiscal year 1973-74 by the consumer price index computation applied yearly to the State of Maryland Retirement Systems. This recommendation would in the first year increase the State assistance to these colleges and universiti3s from $2,700,000 to approximately $4,800,000. (Author/MJM)

  • FILMED FROM BEST AVAILABLE COPY

    PRIVATE HIGHER EDUCATION IN MARYLAND

    r 01 rsc*N

    COO A REPORT

    LLJ CONCERNING THE FINANCIAL CONDITION OF PRIVATE HIGHER

    EDUCATION IN MARYLAND AND

    THE STATE'S RELATIONSHIP TO THESE INSTITUTIONS

    MARYLAND COUNCIL FOR HIGHER EDUCATION

    To His Excellency, THE GOVERNOR

    AND THE GENERAL ASSEMBLY OF THE STATE OF MARYLAND

    Annapolis June, 1973

  • William P. Chaffinch Chairman

    Dr. Henry C. Welcome ViceChairman

    El lery B. Woodworth Secretary

    STATE OF MARYLAND

    MARYLAND COUNCIL FOR HIGHER EDUCATION 93 MAIN STREET - ANNAPOLIS 21401

    301-267-5961

    November 26, 1973

    PRIVATE HIGHER EDUCATION IN MARYLAND ABSTRACT

    Dr. Wesley N. Dorn CTU five Director

    Dr. Joseph F. Keimig Assistant Director

    Dr. Sheldon H. Knorr Assistant Director

    In the summer of 1972 the Maryland Council for Higher Education created a committee to study the financial viability of the private institutions of higher education in Maryland. The Council believed that such a study was essential and timely since four private institu- tions of higher education had closed since the General Assembly had enacted legislation in 1970 granting the private colleges and universities five hundred dollars per bachelor's degree and two hundred dollars per associate degree yearly.

    A committee of five distinguished citizens of Maryland chaired by Mr. Philip Pear of Bethesda and staffed by Dr. Monte P. Shepler of the Council's staff was formed to conduct the study. The committee met during 1972 and filed its report with the Governor in June of 1973. Generalized, its findings and recommendations were as follows:

    Findings

    (1) That the present level and form of State assistance would not be adequate in terms of the private institution's needs and that both should be altered and an ongoing aid program developed which might more adequately preserve the viability of these institutions.

    Recommendations

    (1) The amount of annual assistance be computed by multiplying $243.00 by the fall semester Full Time Equivalent enrollment at private institutions of higher education and accumulatively adjusting the $243.00 yearly after fiscal 73-74 by the consumer price index computation applied yearly to the State of Maryland Retirement Systems.

    This recommendation would in the first year increase the State assistance to these colleges and universities from $2,700,000.00 to approximately $4,800,000.00

    MPS:ps

  • PRIVATE HIGHER EDUCATION IN MARYLAND

    A REPORT

    CONCERNING ThE FINANCIAL CONDITION OF PRIVATE HIGHER

    EDUCATION IN MARYLAND AND

    THE STATE'S RELATIONSHIP TO THESE INSTITUTIONS

    to the Governor,

    the General Assembly,

    and

    the Maryland Council for Higher Education

    by the Committee to Study Private Higher Education in Maryland

    June 1973

  • Council Membership

    IAI3LE OF CONTENTS

    Page

    VII Letter of Transmittal to the Governor VIII Committee Membership IX

    Letter of Transmittal to the Council X

    Acknowledgements XIII

    Foreward XV Origin of the Study XV Committee Procedures XVI

    Chapter I A Pluralistic System of Higher Education 1-1 Comparisons Between the Two Sectors - Public and Private 1-1

    Enrollments 1-1 Degrees Conferred 1-5

    The Private Sector 1-7 The Institutions Studied . 1-7 Types of Institutional Control 1-8 The Assets of the Private Sector 1-10 Cultural and Economic Contributions 1-10

    Chapter II Present and Future Financial Status of the Private Sector 2-1

    Introduction 2-1 Touche Ross Summary 2-3

    Scope 2-3 General Approach 2-3 Summary of Findings and Conclusions 2 -4 Financial Overviews of Maryland Private Higher Education 2 -6 Financial Condition of the Institutions Studied 2-9

    Institutions Which are Unlikely to Incur Deficitis Through Fiscal Year 1977 2-10

    Institutions Which are Likely to Incur Deficits Through Fiscal Year 1977 2- 11

    Institutions Which are Likely to Incur Significant Deficits Through Fiscal Year 1977 2-12

    Causes of the Financial Crisis at Private Colleges and Universities __The Committee View 2-13

    Tuition and Fees 2-13 Enrollments 2-15 Fixed and Unpredicted Costs 2-17

    A Look at What's Ahead -- Institutional View 2-20 Enrollments 2-20 Faculty 2-22 Space 2-23 Academic Programs 2-23 Presidents' Comments 2-24

    Chapter III Recommendations 3-1 Introduction 3-1 Basic Premises for Supporting Private Higher Education 3 -I Basic Premises of the Aid Formula 3-2 Aid Program 3-3

    III

  • TABLE OF CONTENTS (continued)

    Page

    Direct Aid 3-3 Capital Assistance 3-6 Recommendations 3-6

    Coordination and Cooperation 3-7

    Proposed Amendments to Article 77A 3-8 Present Law 3-9 Proposed Bill 3-12

    Minority Report 3-14

    Appendices

    IV

  • LIST OF TABLES

    Table Page

    I Total Enrollment in Maryland Institutions of Higher Education - 1955-1971 By Percent of Total Enrolled in Each Segment 1-2

    II Headcount and Full-Time-Equivalent Enrollment at Maryland Public and Private Colleges and Universities 1967 and 1971 1-3

    Perce,it Change in Headcount and Full-Time-Equivalent Enrollment at Maryland Public and Private Colleges and Universities Between 1967 and 1971 1-3

    IV Projection of Total Enrollment for Maryland Institutions of Higher Education Through 1980 1-4

    V Percentage of Headcount Enrollment and Percentage of Degrees Granted at Maryland Public and Private Colleges and Universities - 1967-68 and 1971-72 1-5

    VI Weighted Average Tuition and Fees Charged at Maryland Public and Private Institutions of I ligber Education 1964, 1968, and 1972 2-14

    VII Changes in Headcount Enrollment at Five Private Colleges Facing Financial Difficulty, 1968-72 2-16

    VIII Changes in Headcount Enrollment at Five Priv-te Colleges Not Facing Financial Difficulty, 1968-72 2.16

    IX Average Faculty Salaries By Rank in 1971-72 at Maryland Public and Private Colleges and Universities 2-18

    X Percent Increase in Projected Total, Full-Time and Part- Time Enrollment Between 1972-76 in Maryland Private Institutions of Higher Educa'Ion 2-20

    XI Percent Increases in Projected Full-Time Equivalent Enroll- ment by Division Between 1972-76 in Maryland Private Institutions of Higher Education 2 -21

    XII Projected Capital Expelditures at Public Institutions of Higher Education Through 1976 2-22

    Proposed State Aid Formula 3.5

    V

  • STATE OF MARYLAND MARYLAND COUNCIL FOR HIGHER EDUCATION

    WILLIAM P. CHAFFINCH Chairman

    DR. HENRY C. WELCOME Vice-Chairman

    ELLERY B. WOODWORTH Secretary

    MRS. THELMA B. COX MRS. GERTRUDE H. CRIST

    MRS. MARILYN R! GOLDWATER DR. R. LEE HORNBP.KE

    DON R. KENDALL EDMUND C. MESTER

    PHILIP PEAR JOSEPH A. SELLINGER, S.J.

    ALVIE G. SPENCER, JR. HARRY K. WELLS

    STAFF DR. WESLEY N. DORN

    Exechtive Director

    DR. JOSEPH F. KEIMIG Associate Executive Director

    DR. SHELDON H. KNORR Assistant Executive Director

    K. G. ROBINSON Senior Specialist in Higher Education Facilities

    WALTER R. LEWIS Senior Specialist in Higher Education Finance

    DR. MONTE P. SHEPLER Senior Specialist in Higher Education Programs

    EUGENE STANLEY Senior Specialist in Higher Education Interstate

    and Inter-Institutional Relations

    B. KERRY GUSTAFSON Specialist in Higher Education Systems Planning

    JO! N A. SABATINI, JR. Associate Staff Specialist

    93 MAIN STREET ANNAPOLIS, MARYLAND 21401

    VII

  • The Honorable Marvin Mandel, Governor State of Maryland Executive Department Annapolis, Maryland 21404

    Your Excellency:

    In accordance with your request to the Council of June 1972 to conduct a comprehensive study of the financial condition of private higher education in Maryland I am herewith presenting to you the Pear Com