Cost Containment

In April, 2008, the American Association of State Colleges and Universities and SunGuard Higher Education published an article outlining research conducted through surveying AASCU member institutions. Over 114 AASCU institutions responded to the survey. Practices utilized to reduce cost containment are listed in the article.

Worth noting are the items listed that is keeping AASCU member institutions from containing the cost of doing business.

According to the survey:

Emerging Constraints on Cost Containment (AASCU and SunGuard Higher Education, 2008)

When asked about emerging issues in cost containment, survey participants are most likely to cite issues related to:

• Energy costs and energy management (36 percent)
• Benefits costs, especially rising health insurance costs (24 percent)
• Faculty and academic programming (22 percent)
• Staffing levels and salaries (12 percent)

My Opinion

Oftentimes, the discussion of finance in higher education, especially during difficult economic times is surrounded by issues involving faculty/staff employment and operating budgets. It was surprising to learn of the institutions response that "energy costs and energy management" was leading issue compared to other operational issues. Until recently, only little attention was paid to energy issues. Perhaps budgetary savings realized from operating in the "green" will keep higher education institutions out of the "red", and faculty / staff employment contracts away from slips of "pink".


Reference

American Association of State Colleges and Universities and SunGard Higher Education. (April, 2008) Cost Containment: A Survey of Current Practices at America’s State College and Universities . Washington, DC: American Association of State Colleges and Universities. Malvern, PA: SunGard Higher Education.