Sunday, February 15, 2015

Budget shortfall to hit higher education - Mike Bush, ABQJournal

Financially, each of the universities and colleges appears to be uniquely positioned, and some anticipate an easier time crafting budgets than others. Additionally, flat or lower enrollment – a widespread problem – makes matters worse. The state’s funding formula is built, in considerable part, on the number of students attending a college or university. The University of New Mexico is wrestling with a potential shortfall of $7.2 million. Last year, President Bob Frank appointed a broad-based cost control group to find ways to rein in spending and increase revenue. That group is looking everywhere for cost-containment strategies. On the other end of the budgetary spectrum is Western New Mexico University, obviously a much smaller institution. Last year, when a projected 5 percent increase in enrollment didn’t materialize, Western cut its budget by $5 million, a 4 percent reduction, and in so doing erased a $1.3 million shortfall.

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