As the full picture of the economic impacts of the Great Lockdown emerges, there are several sectors that are bracing for the full financial hit (think state budgets which will no doubt crater as all forms of revenue dry up) or are limping along such as higher education. Many faculty are hoping that colleges can sort of “walk it off” during the summer; but, containment of COVID-19 will not happen anytime soon and certainly not before the fall.
Colleges pay most of their bills from endowments, student tuition & fees, student room & board, and state support (in the case of state institutions). In an economic crisis, these revenues would be squeezed; but, the public health crisis of COVID-19 has created an existential threat for institutions. The threat is particularly dire for liberal arts colleges whose primary missions include hands-on teaching, small classrooms, low student to teacher ratios, close relationships between students and faculty, and an integrated residential community of students.
Higher education has been facing the looming threat of reduced demand because of lower birthrates for some time. It seems quite likely that the current health crisis will accelerate the closure of a number of smaller, tuition-driven institutions with endowments unable to make up for lost revenues or, as we might come to see throughout this crisis, leadership failures…
To read the entire article from Lawyers, Guns & Money, click https://www.lawyersgunsmoneyblog.com/2020/04/no-way-to-beat-the-spread
