Stanford's financial future - Printable Version
+- The CardBoard (https://thecardboard.org/board)
+-- Forum: Emergency (https://thecardboard.org/board/forum-11.html)
+--- Forum: Covid-19 (https://thecardboard.org/board/forum-12.html)
+--- Thread: Stanford's financial future (/thread-19802.html)
+- The CardBoard (https://thecardboard.org/board)
+-- Forum: Emergency (https://thecardboard.org/board/forum-11.html)
+--- Forum: Covid-19 (https://thecardboard.org/board/forum-12.html)
+--- Thread: Stanford's financial future (/thread-19802.html)
Stanford's financial future - chrisk - 05-27-2020
A letter from the President:
(planning for up to a 10-15% cut next year)
https://healthalerts.stanford.edu/covid-19/2020/05/27/a-message-from-president-marc-tessier-lavigne-our-financial-future/
RE: Stanford's financial future - Genuine Realist - 05-27-2020
For a second there, I thought you meant a 10 to 15 % reduction in tuition. Heh heh heh - silly me . . .
RE: Stanford's financial future - Farm93 - 05-28-2020
(05-27-2020, 11:00 PM)Genuine Realist Wrote: For a second there, I thought you meant a 10 to 15 % reduction in tuition. Heh heh heh - silly me . . .If Stanford wanted to balance its budget with a tuition INCREASE that likely would be a sensible move IMHO. The on-campus costs to educate students and implement social distancing for workers will soar in the next 18-24 months, and today tuition does not come close to covering the costs.
Companies that have any ability to pass their COVID mitigation costs along will start doing that in 2021. An enterprise that turns away routinely turns away 96% of its potential customers likely has that pricing power.
RE: Stanford's financial future - JustAnotherFan - 05-28-2020
(05-28-2020, 05:58 AM)Farm93 Wrote:(05-27-2020, 11:00 PM)Genuine Realist Wrote: For a second there, I thought you meant a 10 to 15 % reduction in tuition. Heh heh heh - silly me . . .If Stanford wanted to balance its budget with a tuition INCREASE that likely would be a sensible move IMHO. The on-campus costs to educate students and implement social distancing for workers will soar in the next 18-24 months, and today tuition does not come close to covering the costs.
Companies that have any ability to pass their COVID mitigation costs along will start doing that in 2021. An enterprise that turns away routinely turns away 96% of its potential customers likely has that pricing power.
Only if they get Harvard to do the same.
Otherwise Stanford becomes a playground only for the super wealthy plus the 20% of the lower (middle) class that they are willing to let come at a reduced price.
RE: Stanford's financial future - Farm93 - 05-28-2020
(05-28-2020, 09:31 AM)JustAnotherFan Wrote:That type of price collusion with the peer group would be rather problematic.(05-28-2020, 05:58 AM)Farm93 Wrote:(05-27-2020, 11:00 PM)Genuine Realist Wrote: For a second there, I thought you meant a 10 to 15 % reduction in tuition. Heh heh heh - silly me . . .If Stanford wanted to balance its budget with a tuition INCREASE that likely would be a sensible move IMHO. The on-campus costs to educate students and implement social distancing for workers will soar in the next 18-24 months, and today tuition does not come close to covering the costs.
Companies that have any ability to pass their COVID mitigation costs along will start doing that in 2021. An enterprise that turns away routinely turns away 96% of its potential customers likely has that pricing power.
Only if they get Harvard to do the same.
Otherwise Stanford becomes a playground only for the super wealthy plus the 20% of the lower (middle) class that they are willing to let come at a reduced price.
Ultimately look for HYPSM types to do the tuition increases to stabilize education. It could actually become a noble pitch.
The smaller liberal arts colleges, public universities and local schools will all struggle with costs too. They will all want to raise prices/taxes/revenue, but will have a tough time if the HYPSM types are holding tuition down. The short-term solution will be to cut costs and fire staff, but in some places in the USA those tactics will cause faculty and staff to leave. That isn't helpful if the pandemic requires more teachers and staff, not less.
If tuition generally covers 50% of costs at Stanford today, it will be best if tuition covers a similar percentage in academic year 2021-2022. Since the tuition for 2020-2021 was already announced I understand the cost cutting approach in the short-term. If a vaccine arrives in early 2021 then the basic outline of the 2019 cost structure could return. In not then I expect schools across the USA will start looking to pass on the costs in the form of tuition increases with some increase in aid for the poorest families.
Price increases should happen in other industries soon. For example, the current airline fare structure is built off of a ~80+% seat occupancy model which is not possible if every middle seat is unoccupied. The airfare pricing may dip in the short-term as companies try to grab cash to stay out of bankruptcy, but soon the survivors will push fares up to align with their new cost structure.
College pricing is not quite that dynamic, but no Bay Area employer can expect to keep highly skilled staff by cutting salaries for the medium or long-term.
RE: Stanford's financial future - Goose - 05-28-2020
I really wish Stanford would publish a historical audit (say the last 50 years) of the non-academic staff, including total salary cost and head count. The UC schools have to do this, and the result is appalling IMHO. The growth has been totally disproportionate to any benefits. I hope that if there is a RIF it will happen in these personnel.
RE: Stanford's financial future - BostonCard - 05-28-2020
https://en.wikipedia.org/wiki/Baumol%27s_cost_disease
![[Image: US_CPI.jpg]](https://upload.wikimedia.org/wikipedia/commons/9/91/US_CPI.jpg)
RE: Stanford's financial future - 76lsjumb - 05-28-2020
(05-28-2020, 01:44 PM)Goose Wrote: I really wish Stanford would publish a historical audit (say the last 50 years) of the non-academic staff, including total salary cost and head count. The UC schools have to do this, and the result is appalling IMHO. The growth has been totally disproportionate to any benefits. I hope that if there is a RIF it will happen in these personnel.
What? You’re saying that the Asst. Assoc. Administrative Undersecretary to the Vice Dean for Student-Facility Interaction isn’t critical to the University’s mission?
Heresy...
RE: Stanford's financial future - chrisk - 05-28-2020
Globalization held down the price increases of products.
With Zoom, universities could hold down tuition increases by utilizing faculty from India and other countries with lower salaries.
RE: Stanford's financial future - M T - 05-28-2020
(05-28-2020, 02:31 PM)chrisk Wrote: Globalization held down the price increases of products.
With Zoom, universities could hold down tuition increases by utilizing faculty from India and other countries with lower salaries.
And, could have 10s of millions of students from around the world?
But, instead, why not just spread the cost out over time? Hire a prof for one year, and replay his lectures for the next 10 years.
Spoken language issues would need to be considered. I know my wife had a college prof whose (non-US) accent was so thick that he really couldn't be understood, per my wife & the other students, and the one recorded lecture I heard. The lectures were wasted time for most of the students.
RE: Stanford's financial future - Goose - 05-28-2020
(05-28-2020, 02:13 PM)76lsjumb Wrote:(05-28-2020, 01:44 PM)Goose Wrote: I really wish Stanford would publish a historical audit (say the last 50 years) of the non-academic staff, including total salary cost and head count. The UC schools have to do this, and the result is appalling IMHO. The growth has been totally disproportionate to any benefits. I hope that if there is a RIF it will happen in these personnel.
What? You’re saying that the Asst. Assoc. Administrative Undersecretary to the Vice Dean for Student-Facility Interaction isn’t critical to the University’s mission?
Heresy...
I know that position must be critical because it reports via a dotted line to the Vice-Provost of Alcohol and Drug Policy.
RE: Stanford's financial future - akiddoc - 05-28-2020
(05-28-2020, 03:06 PM)Goose Wrote:(05-28-2020, 02:13 PM)76lsjumb Wrote:(05-28-2020, 01:44 PM)Goose Wrote: I really wish Stanford would publish a historical audit (say the last 50 years) of the non-academic staff, including total salary cost and head count. The UC schools have to do this, and the result is appalling IMHO. The growth has been totally disproportionate to any benefits. I hope that if there is a RIF it will happen in these personnel.
What? You’re saying that the Asst. Assoc. Administrative Undersecretary to the Vice Dean for Student-Facility Interaction isn’t critical to the University’s mission?
Heresy...
I know that position must be critical because it reports via a dotted line to the Vice-Provost of Alcohol and Drug Policy.
When my daughter was applying for jobs I noticed that Stanford seems to hire a small army of analysts, researchers, and various other types in that realm.
RE: Stanford's financial future - Mick - 05-29-2020
(05-28-2020, 03:02 PM)M T Wrote: Spoken language issues would need to be considered. I know my wife had a college prof whose (non-US) accent was so thick that he really couldn't be understood, per my wife & the other students, and the one recorded lecture I heard. The lectures were wasted time for most of the students.
I think we've all had that prof. He took roll by last name the first day of class and gave up halfway through my last name, which is very close to 'Singleton.'