The first look ever at how
the USA's economic downturn could affect education finds that
states probably will cut an estimated 18.5% of spending over
the next three years, an $80 billion drop that could eliminate
574,000 publicly funded jobs. The analysis, by Marguerite Roza,
a senior scholar at the University of Washington's Center on
Reinventing Public Education, comes as congressional lawmakers
begin working out a compromise on the economic stimulus bill...
Harvard University said Friday it will cut about a quarter
of the staff — or about 50 jobs — from the company
that manages its endowment after the fund's value tumbled $8 billion
in four months. The estimated 22% decline, by far the largest in
higher education, was the sharpest drop in the endowment's history.
The fund was valued June 30 at $36.9 billion before falling to
$28.7 billion by October...
The name-brand master of business administration
programs at schools like Harvard, Wharton and Stanford have
long been gateways to the gilded castles of investment banks,
private equity firms and hedge funds. Now those jobs have evaporated...That's
not such a problem for students at many less prestigious schools...They
tend to head to regional businesses, and fewer of them go into
financial services. Their specialties are such areas as energy,
brand management, supply-chain management, human resources and market research.
The industries they rely on may have been hurt during this downturn, but they
haven't been devastated...
Now
is a great time for colleges to get bids on construction projects — if
they have the money to pay for them...As the financial, housing,
and major-construction markets have headed toward meltdowns,
those same construction firms are looking for jobs, even while
the prices of energy and materials have fallen. The prices of
essential construction materials like structural steel, cement,
and lumber are all expected to decline through 2009... (paid
subscription required)
Public colleges and universities are just beginning
to recover from the 2001 recession, and that progress is likely
to be undone in the coming fiscal year, according to a new report.
The report, issued by the State Higher Education Executive Officers
(SHEEO), indicates that per-student state appropriations were on
the rise from 2006 to 2008, following four consecutive years of
decline. Even with these gains, however, state-supported colleges
are receiving less in constant dollars per student than they were
in 2001 — a
peak year in data that stretch back to 1983...