2014: Tuition and Expenditures Up; Faculty Salaries Lag

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1 214: Tuition and Expenditures Up; Faculty Salaries Lag By Suzanne B. Clery Suzanne B. Clery is a senior research associate at JBL Associates, Inc., in Bethesda, Maryland, a consulting firm specializing in postsecondary education policy. Ms. Clery has worked extensively with higher education data and issues for over two decades. Her many statistical analyses include reports on institutional finance, salary, compensation, and pay equity. Clients of JBL Associates Inc., include the National Education Association, the U.S. Department of Education, the Massachusetts State College Association, the Washington State Higher Education Coordinating Board, the American Association of State Colleges and Universities, and individual institutions. Ms. Clery has prepared in-depth analyses for the PSC Study on Race and Employment at CUNY published by the Professional Staff Congress of the City University of New York (CUNY). The study investigates how race, gender, and ethnicity affect hiring, promotion, tenure, and reclassification at CUNY. Clients for her detailed studies of compensation include the public colleges and universities in Massachusetts and Brown University. Changes in policy, enrollment, funding dollars and sources, the economy, employment, workforce and labor force demands, technology, accreditation, regulations, and public and student needs have historically affected colleges and universities their missions and strategies; budgets, financial flexibility and priorities; number, type and needs of students; staffing levels and types; and compensation packages. Recent changes in revenue streams, expenditure patterns, student costs, staffing, and compensation demonstrate that the past two decades are no different. Revenue Streams The share of revenues public institutions derived from federal, state, or local appropriations decreased over the past two decades, from 38 percent to 2 percent. Income from tuition and fees replaced the largest share of the loss, increasing from 18 to 27 percent of total revenues. Corrected for inflation, revenue per student in public institutions from government appropriations declined $1,922 over the past two decades, while tuition and fees revenue per student increased by $4,641.

2 1 THE NEA 215 ALMANAC OF HIGHER EDUCATION Cost to Students Inflation-adjusted net price 1 at public fouryear institutions increased 58 percent over the past two decades, 2 while the inflationadjusted median family income increased only four percent. During the 1993 academic year, the net price of attendance at a public four-year institution was $7,99, which was 16 percent of the median family income. The average net price at public four-year institutions was $12,62 in , or 25 percent of the median family income. The average loan debt for baccalaureate degree recipients, expressed as a ratio of the average annual income for young adults, increased by 8 percent over the last two decades. Faculty The average salary for full-time faculty on 9/1-month contracts in was $78,736. Among workers holding bachelors, masters, and doctorates as their highest degrees, 213 median earnings were $57,616, $69,18 and $84,396, respectively. 3 Inflationadjusted institutional expenditures per student increased 35 percent over the past two decades, but the average purchasing power of faculty increased only seven percent. The faculty categories that are growing earn less. The median salary for non-tenured assistant professors, for example, is $56,774, significantly less than $82,981 paid to tenure track assistant professors. 4 The median parttime pay per course, based on a three-credit course in a four-year university, was $2,7 in fall 21. Only 23 percent of part-time faculty had access to healthcare. 5 The share of tenured or tenure track instructional staff declined from 36 to 25 percent between 1992 and 212. By contrast, the share of part-time faculty increased from 33 to 39 percent. Graduate assistants increased from 19 to 22 percent. OVERVIEW This report relates trends in revenues and expenditures to faculty staffing and salaries. It relies largely on data from the National Center for Education Statistics (NCES), Integrated Postsecondary Education Data System (IPEDS), Human Resources (HR), Finance, and Enrollment Survey data. NCES, a division of the U.S. Department of Education, collected HR data from 4,682 degree-granting colleges and universities as part of the annual IPEDS data collection for higher education institutions. 6 Our analysis excluded 1,515 seminaries, religious training institutions, and forprofit colleges, leaving 3,167 institutions. We used an early release version of the IPEDS data; our results may therefore differ from the data reported by NCES at a later time. INSTITUTIONAL FINANCING Institutional Revenues Corrected for inflation, total revenues for public institutions doubled from $169 to $343 billion between 1992 and 212. Community colleges showed the largest revenue increase, from $31 billion to $71 billion or 128 percent. Public baccalaureate granting institutions showed the smallest increase in revenues, from $3.2 billion to $4.5 billion or 41 percent. The largest enrollment growth among public institutions over the two decades occurred at community colleges. Full-time equivalent (FTE) enrollment increased from 3. to 4.4 million students, or 47 percent. 7 Enrollment growth in all other public sectors ranged from 28 to 34 percent. The sources of inflation-adjusted revenue streams in public institutions changed over the two decades. Tuition and fees nearly tripled from $3.1 to $91.5 billion between 1992 and 212, while government appropriations only increased from $64.2 to $68.3 billion (Figure 1). Inflationadjusted state appropriations remained at approximately the same level in 1992 and 212, $56.5 billion. Federal appropriations declined

3 214: TUITION AND EXPENDITURES UP; FACULTY SALARIES LAG 11 Figure 1. Revenues by Source and Institutional Type, Constant Dollars, Public Institutions, 1992 and 212 Dollars (in billions) Tuition and Fees Grants, Gifts, Contracts Sales/ Services & Auxillary Enterprises Other Appropriations Two-Year Baccalaureate Comprehensive Doctoral Revenue Source Institutional Type Source: NCES, IPEDS Finance Survey, and by $567 million while local appropriations increased by $4.8 billion. Total governmental appropriations therefore increased slightly. 8 Revenue from grants, gifts, and contracts grew significantly between 1992 and 212. These revenues are usually not for discretionary use. Benefactors typically earmark the funds for specific expenditures, or they are designated for research, development, and training programs. This revenue stream includes federal funds covering expenditures for Pell Grants to students. The cost of the Pell Grant program grew from an inflation-adjusted $9.1 billion in 1993 to $336 billion in That s an increase from 18 to 27 percent of the gift, grant, and contract revenue between 1992 and Sales and services of educational activities and auxiliary enterprise revenues nearly tripled, increasing from $2.1 to $57.9 billion. Revenue from other sources increased from $22.1 billion to $49.1 billion. Increased revenues must support growing enrollments. FTE enrollment in public colleges and universities increased from 7.7 to 1.6 million, or 38 percent, between 1992 and Corrected for inflation, total operating revenues per student in public institutions increased by 47 percent, from $22,4 to $32,398 (Figure 2). Tuition and fees revenues per FTE student more than doubled, from $3,968 to nearly $8,627 per FTE student, while governmental appropriations per FTE student declined by $1,922, or 23 percent. Among revenue sources in public institutions, only governmental appropriations per FTE student declined over the two decades. Figure 3 shows the change in the relative share of each revenue source over the two decades at public institutions. The share of revenues from governmental appropriations declined from 38 to 2 percent. Tuition and fees replaced much of the diminished governmental support, increasing from 18 to 27 percent of

4 12 THE NEA 215 ALMANAC OF HIGHER EDUCATION Figure 2. Public Institution Revenues per FTE, by Source, Constant Dollars, 1992 and 212 Dollars per FTE 1, 8, , 4, 2, Tuition and Fees Grants, Gifts, Contracts Sales/Services & Auxiliary Enterprises Other Appropriations Revenue Source Source: NCES, IPEDS Finance Survey, and ; IPEDS Enrollment Survey, Fall 1992 and Fall 212. Figure 3. Distribution of Revenue by Source, Public Institutions, Constant Dollars, 1992 and 212 Percent % 27% 2 18% 19% 22% 12% 17% 13% 14% 2% Tuition and Fees Grants, Gifts, Contracts Sales/Services & Auxiliary Enterprises Other Appropriations Revenue Source Source: NCES, IPEDS Finance Survey, and

5 214: TUITION AND EXPENDITURES UP; FACULTY SALARIES LAG 13 total revenues. Revenues attributed to grants, gifts, and contracts increased from 19 to 22 percent. Auxiliary enterprises income grew from 12 to 17 percent; other revenue sources increased from 13 to 14 percent. The shift in revenue sources to replace the loss of governmental support differed for public two- and four-year institutions. Increased revenue from tuition and fees from 18 to 27 percent of total revenues largely offset the appropriation decline in four-year institutions. Tuition and fees revenues increased only five percentage points in public two-year institutions, from 2 to 25 percent of revenues. Income from grants, gifts, and contracts often earmarked for specific expenditures increased from 17 to 26 percent of total revenues in two-year institutions. Institutional Expenditures Corrected for inflation, operating expenditures for public institutions grew from $13 to $244 billion, or by 87 percent, between 1992 and 212 (Figure 4). Expenditures for scholarships and fellowships, and for plant operation and maintenance showed the smallest increases (4 and 49 percent, respectively). Student services and academic support showed the largest increases (116 percent); followed by research and institutional support expenditures (11 and 17 percent, respectively). Instructional and public service expenditures increased by 83 percent and 81 percent, respectively. Community college expenditures doubled from $28 billion to $57 billion, while spending at research universities grew by 87 percent, from $89 billion to $165 billion. Expenditures in the small, public baccalaureate sector increased from $2.7 billion to $3.5 billion, only 33 percent. The average cost per FTE student increased from $16,974 to $22,991, or 35 percent, over the two decades (Figure 5). Instruction, student services, and academic support categories Figure 4. Expenditures by Source and Institutional Level, Constant Dollars, Public Institutions, 1992 and 212 Dollars (in billions) Instruction Research Academic Scholarship/ Support, Fellowship Student Service Institutional Support Public Service O&M/ Plant Two-Year Baccalaureate Comprehensive Doctoral Expenditures by Source Expenditures by Institutional Level Source: NCES, IPEDS Finance Survey, and

6 14 THE NEA 215 ALMANAC OF HIGHER EDUCATION Figure 5. Public Institution Expenditures per FTE, by Source, Constant Dollars, 1992 and 212 Dollars per FTE 25, , 15, 1, 5, Instruction Research Academic Scholarship/ Support, Fellowship Student Service Institutional Support Public Service O&M/ Plant Total Expenditures by Source Source: NCES, IPEDS Finance Survey, and ; IPEDS Enrollment Survey, Fall 1992 and Fall 212. relevant to the educational experience of students accounted for 57 percent of total expenditures. Instructional expenditures per FTE student increased only 33 percent over the 2 years, from $6,863 to $9,99. But combined expenditures for student services and academic support increased by 56 percent, from $2,544 to $3,979. The student services category includes counseling and advising, regulation compliance, volunteer programs, recruiting expenses, fitness centers and athletic courts and fields, IT support for new infrastructure and distance learning, student centers, athletic clubs and student organizations. Institutions invested in more amenities and support services as competition for students increased. Inflation-adjusted expenditures per student on scholarships and fellowships remained the same over the two decades, at about $1,5. Expenditures in the remaining categories increased: research by 52 percent; institutional support by 5 percent; public service by 31 percent; and operation and plant maintenance by eight percent. The relative share of total expenditures for each expense category remained consistent over the 2 years in all public sectors (Figure 6). The slight decrease in the share of total expenditures going to plant operation and maintenance suggests that institutions are delaying facility upkeep. 12 FACULTY SALARIES Have the large increases in institutional revenues and expenditures benefitted faculty members? The historical high point of faculty purchasing power occurred in , when the average faculty member earned $73,722, adjusted for inflation. In , faculty purchasing power was 6.7 percent higher, or $4,964, than the high (Table 1). 13 The $78,736 average salary in is 7.4 percent

7 214: TUITION AND EXPENDITURES UP; FACULTY SALARIES LAG 15 Figure 6. Distribution of Expenditures by Source, Public Institutions, 1992 and 212 Percent % 4% 2 12% 14% 15% 17% 9% 1% 11% 7% 5% 5% 8% 7% Instruction Research Academic Support, Student Services Scholarship/ Fellowship Institutional Support Public Service O&M/Plant Expenditures by Source Source: NCES, IPEDS Finance Survey, and higher, or $5,44, than it was two decades ago. The purchasing power of instructors, lecturers, and faculty with no rank declined significantly since Much of the decline took between and The purchasing power of these ranks increased since , but remains below the level. The purchasing power of full professors also declined between and ; it increased significantly over the last two decades and now surpasses the level. Faculty salaries ranged from an average of $15,486 for professors to $52,654 and $51,519 for instructors and lecturers respectively (Table 1). Continuing a trend, instructors and lecturers earned half as much as professors; associates earned about three-quarters as much, and assistant professor salaries earned about two-thirds as much. Faculty in independent institutions earned more than colleagues in public institutions, except at community colleges (Figure 7). Faculty members at public and independent research universities received higher salaries than colleagues at other institutional levels (Figure 7). Faculty at public research universities earned $83,6 $16, to $21, more than faculty in other public institutions (ranging from $62,869 in community colleges to $67,314 in comprehensives). Average salaries for faculty members at independent institutions show a broader range. The average for faculty at independent research universities is $96,646 $25, to $47, more than faculty in other private institutions (ranging from $49,598 in two-year institutions to $71,843 in baccalaureate-granting institutions). The disparity between public and independent faculty salaries persists for most faculty ranks. The biggest difference: professors at independents earn over $22, more than colleagues in public colleges and universities ($12,69 vs. $98,547). The salary difference for

8 16 THE NEA 215 ALMANAC OF HIGHER EDUCATION Table 1. Average Salaries for Full-Time Faculty on 9/1-Month Contracts, Constant Dollars, and Percentage Change in Salary and Purchasing Power, by Rank, , , and Average Salary in Constant Dollars $ Change Percentage Change to to to to Faculty Rank Total, All Faculty $ 73,772 $ 73,296 $ 78,736 $ 4,964 $ 5,44 7% 7% Professor 12,173 95,919 15,486 3,313 9, Associate 77,618 71,516 76,476 (1,142) 4, Assistant 64,72 59,421 65,189 1,117 5, Instructor 57,19 45,549 51,519 (5,671) 5, Lecturer 61,984 48,119 52,654 (9,33) 4, No Rank 67,519 64,178 62,38 (5,481) (2,14) -8-3 Source: NCES, IPEDS Salary Survey, , , and other ranks ranges from $3, to $13, all favoring independent faculty, save for instructors. Instructors in public institutions, mostly two-year colleges, averaged $52,796; instructors in independents earned $48,668. Salaries by State State funding for higher education varies; so does the magnitude of funding cuts or increases. The rankings of faculty salaries by state, both two- and four-year, remain relatively stable; the same states consistently rank in the top and bottom five or ten. New Jersey, Delaware, California, and Connecticut are perennially among the top five four-year institutions, while Mississippi, Arkansas, and Louisiana are among the bottom five (Table 2). Public two-year institutions in California, Michigan, Wisconsin, and New Jersey pay their faculty the highest average salaries. The relative ranking of two- and fouryear faculty salaries is similar in many states. Pennsylvania, for example, ranks 12th for fouryear faculty salaries ($83,638), and 13th for two-year faculty salaries ($63,564). There are exceptions; faculty salaries at Iowa s four-year and two-year institutions rank 8th and 26th, respectively ($87,17 and $55,492). Continuing the historical trend, faculty in public four-year institutions average more than colleagues in public two-year colleges. The difference in average salaries ranged from $6,444 (Michigan) to $34,623 (Indiana). Faculty in public two-year colleges earned more than colleagues in public four-year institutions only in Wisconsin, $77,345 vs. $71,619; the $5,726 difference closed by $563 since Average salaries in public four-year institutions exceeded those in independents in 3 states. The range: from $1,356 in Vermont to $38,944 in Wyoming, for an average difference of $14,955. Washington, D.C. showed the most pronounced difference ($27,461) among independents whose faculty salaries exceeded those of public four-year institutions. Salaries by Discipline Salaries of faculty teaching in legal professions, business, health, and engineering averaged near or over $1, in (Table 3). Computer science ($92,46) and architecture ($83,265) faculty trailed at a relatively distant second and third. As has long been the case, visual and performing arts, English and history faculty had the lowest average salaries, all below $7,.

9 214: TUITION AND EXPENDITURES UP; FACULTY SALARIES LAG 17 Figure 7. Average Faculty Salaries, by Rank, 9/1-Month Contracts, Average Salary ($) 14, 12, Public Private 1, 8, 6, 4, 2, Average Professor Associate Assistant Instructor Lecturer No Rank Two-Year Baccalaureate Comprehensive Doctoral Rank Institution Type Source: NCES, IPEDS Salary Survey, In all but three disciplines architecture, legal, and engineering faculty teaching with the benefit of collective bargaining fared better than colleagues teaching in institutions without unions. Faculty supported by collective bargaining averaged $4,448 more in than colleagues with no union support. The salary difference between unionized and non-unionized faculty in communications technologies, communication and journalism, philosophy and religious studies, visual and performing arts, and library science was more than $8,. The differential in the three highest paid disciplines was minimal or negative for those teaching in unionized institutions. INSTRUCTIONAL STAFFING Over the past two decades, the number of instructional staff full-time tenured/non-tenure track faculty, non-tenure/non-tenure track faculty, part-time faculty, and graduate assistants increased by 56 percent, from 1.1 million to 1.6 million. 14 During this period, academe experienced a significant shift away from fulltime, permanent instructional staff, towards reliance on contingent faculty. The proportion of part-timers and graduate students increased from 51 to 6 percent between 1993 and 213. The share of part-timers grew from 33 to 39 percent of instructional staff during that period, while the share of graduate assistants increased from 19 to 22 percent (Figure 8). More than one in three faculty members were tenured or tenure track in 1993; that proportion fell to one in four by 213. The share of full-time faculty without an opportunity for tenure fluctuated over the 2 years, ending one percentage point higher in 213 than its 1993 level (13 and 14 percent, respectively). The lower salaries and benefits paid to a contingent and part-time workforce yielded cost savings for colleges and universities. Contingency offers flexibility by allowing institutions to reduce staff if funding and enrollments

10 18 THE NEA 215 ALMANAC OF HIGHER EDUCATION Table 2. Average Salaries for Faculty on 9/1-Month Contracts, and Rank, by State and Institutional Type, Public Two-Year Public Four-Year Independent Average State Average State Average State State Salary Rank Salary Rank Salary Rank National Average $ 62,691 $ 8,274 $ 86,422 Alaska 62, , ,68 49 Alabama 53, , , Arkansas 44, , ,671 4 Arizona 7, , , California 81, , ,839 4 Colorado 51, , , Connecticut 71, , ,52 2 District of Columbia 74, ,131 6 Delaware 67, , ,12 16 Florida 58,4 23 8, , Georgia 47, , ,52 24 Hawaii 67,64 1 9, ,316 2 Iowa 55, , , Idaho 49, , ,73 45 Illinois 71, , ,612 8 Indiana 46, , ,59 19 Kansas 51, , , Kentucky 5, , , Louisiana 43, , , Massachusetts 62, ,8 7 17,34 1 Maryland 67, , , Maine 54, , , Michigan 77, , ,352 3 Minnesota 62, , ,3 25 Missouri 53, , , Mississippi 5, , ,15 42 Montana 49,3 4 74, , North Carolina 48, , ,56 13 North Dakota 53, , ,71 43 Nebraska 54, , ,3 32 New Hampshire 6, , ,954 9 New Jersey 71, , ,767 3 New Mexico 47, , Nevada 62, , , New York 7, , ,525 7 Ohio 6, , , Oklahoma 49, , , Oregon 66, , , Pennsylvania 63, , ,221 1 Rhode Island 61, , ,712 5 South Carolina 47, , ,36 39 South Dakota 47, , , Tennessee 49, , , Texas 56, , , Utah 5, , , Virginia 6, , , Vermont 76, ,42 23 Washington 56, , ,97 26 Wisconsin 77, , , West Virginia 46, , ,29 48 Wyoming 58, , ,5 5 Source: NCES, IPEDS Salary Survey, Does not apply/no institutions reported.

11 214: TUITION AND EXPENDITURES UP; FACULTY SALARIES LAG 19 Table 3. Average Salary by Discipline and Collective Bargaining Status, Average Salary Difference, Average Salary Total, Non-Collective Collective (Collective- Discipline Average Bargaining Bargaining Non-Collective) All Fields $ 8,58 $ 79,12 $ 83,55 $ 4,448 Communications Technologies/Technicians and Support Services 7,985 68,498 77,184 8,686 Communication, Journalism, and Related Services 7,798 67,327 75,891 8,564 Philosophy and Religious Studies 72,948 69,457 77,953 8,496 Visual and Performing Arts 67,955 63,943 72,258 8,315 Library Science 71,215 68,493 76,741 8,248 Area, Ethnic, Cultural, and Gender Studies 79,366 74,667 82,518 7,851 Engineering Technologies/Technicians 78,57 75,29 82,98 7,771 Psychology 73,291 71,39 78,86 7,767 English Language and Literature/Letters 68,29 64,879 72,283 7,44 History 69,76 66,551 73,955 7,44 Education 71,61 69,215 76,49 7,275 Foreign Languages, Literatures, and Linguistics 71,715 67,698 74,123 6,425 Liberal Arts and Sciences, General Studies and Humanities 71,382 68,885 75,22 6,317 Multi/Interdisciplinary Studies 79,87 79,636 85,527 5,891 Security and Protective Services 7,795 68,934 74,795 5,861 Computer and Information Sciences and Support Services 92,46 92,64 97,821 5,757 Physical Sciences 75,593 75,883 81,26 5,323 Health Professions and Related Clinical Sciences 81,835 8,741 85,99 5,168 Parks, Recreation, Leisure and Fitness Studies 7,151 69,115 74,227 5,112 Mathematics and Statistics 73,75 72,441 77,475 5,34 Social Sciences 77,247 74,72 79,674 4,954 Agriculture, Agriculture Operations, and Related Sciences 8,629 79,88 84,542 4,662 Biological and Biomedical Sciences 79,779 8,419 84,746 4,327 Public Administration and Social Service Professions 75,487 74,176 77,998 3,822 Business, Management, Marketing, and Related Support Services 18,93 19, ,287 3,55 Natural Resources and Conservation 78,161 77,375 79,43 2,55 Family and Consumer Sciences/Human Sciences 75,41 74,215 76,91 1,876 Architecture and Related Services 83,265 82,829 81,716 (1,113) Legal Professions and Studies 118, ,722 11,862 (1,86) Engineering 99,69 1,49 97,748 (2,661) Source: College and University Professional Association, National Faculty Salary Survey by Discipline and Rank in Four-Year Colleges and Universities. Washington, D.C.: CUPA, March 214.

12 2 THE NEA 215 ALMANAC OF HIGHER EDUCATION Figure 8. Percentage Distribution of Faculty by Employment Type, 1993, 23, and 213 Percentage % 33% 42% 39% 2 23% 25% 13% 1% 14% 19% 24% 22% Full-Time, Tenured/ Tenure Track Full-Time, Non-Tenured/ Non-Tenure Track Part-Time Graduate Assistants Employment Type Source: NCES, IPEDS Fall Staff and Salary Surveys, decline. But contingent status adversely affects the finances and security of instructional staff members that would rather work in full-time, permanent positions: In 21, the median remuneration in fouryear universities paid to part-time faculty per course was $2,7. This amount is approximately 6 percent less than the estimated hourly pay to full-time, tenure-track faculty. 15 Some faculty string together parttime jobs. A faculty member who teaches five classes at median pay receives $13,5 per semester or $27, for two semesters. The poverty threshold in 21 for a family of four was $22, The Affordable Health Care Act (ACA) requires any business with 5 or more employees to provide health insurance to employees working 3 or more hours per week. Since the act s passage, labor unions, and colleges and universities have established policies for part-time faculty. Some policies are positive and constructive; other policies are adversarial and unsupportive. The University of Missouri defined the number of hours a faculty member works per course credit hour as 3.3, or 1 hours per three-hour class. 17 But some institutions limit the number of courses their part-time faculty may teach. Colorado Mountain College, which relies heavily on part-time faculty, assigns a three-hour level of effort to every one credit hour. Citing the prohibitive costs of providing its part-time faculty with healthcare, the college allows part-time faculty to teach only nine credits per semester. The 27 hoursper-week limit keeps part-time faculty at or under the ACA s 3-hour threshold. 18 Only 23 percent of part-time faculty members, notes a 21 study, had access to health care. 19 Institutions paid the health insurance premium for only four percent of surveyed part-timers with access to health care. Another 15 percent shared the cost with the

13 214: TUITION AND EXPENDITURES UP; FACULTY SALARIES LAG 21 institution, and the remaining four percent carried the full cost. Tenurable faculty, on average, are paid more than non-tenurable colleagues. The average assistant professor on tenure track earns $82, percent higher than the average pay of $56,774 to an assistant professor not on tenure track. CONCLUSION: WHAT S IN OUR FUTURE? Inflation-adjusted institutional revenues per student, have increased significantly, and have shifted from federal and state sources to students. Students now find themselves in a high tuition, high aid scenario. Responding to labor force and economic demands, and to a need to secure their financial futures, students continue to enroll, even if costs are rising quickly. The public outcry about the rising costs of tuition and student debt accumulation leads us to ask: how much is too much? Expenditures per student increased over the past two decades, but instructional expenditures increased at a slower rate than student and academic support spending. Facing competition to attract and retain students, institutions invest more in supports, activities, and facilities than in basic classroom instruction. Changes to performance-based funding models affect many aspects of institutional operations, including strategic focus, programming and policies, and marketing. These operations have associated costs, paid for by changing revenue streams. Meanwhile the high school graduate and college-going population is shrinking. First-time postsecondary enrollments declined by 1.5 percent between fall 212 and 213. This decline may further affect institutional demand and revenues, as well as operations. Where will the supply and demand curves meet? How do we contain costs while providing quality education and supports, along with non-academic services? Is there bloat are colleges providing services that, if eliminated, would not affect the quality of education or the ability of students to succeed? Competing forces affect faculty employment status full- or part-time, tenured or not tenured and salaries, compensation, workloads, and working conditions. Tightened revenue streams, cost containment measures, and growing concern for student debt may lead colleges and universities to increase their dependence on part-time and contingent faculty. Conversely, replacing headcount with accountability and performance-based funding may lead colleges to greater reliance on a full-time, permanent faculty workforce that, possessing a higher morale and enjoying better working conditions, is more apt to maintain quality. NOTES 1 Cost of attendance less grants and tax benefits. 2 Baum and Ma, United States Department of Labor, Data retrieved from on December 2, Coalition on the Academic Workforce, The IPEDS faculty salary survey excludes part-time faculty, faculty members paid by a religious order, and non-teaching faculty members. 7 Based on JBL Associates, Inc. s analysis of U.S. Department of Education, National Center for Education Statistics, IPEDS enrollment data. 8 Based on JBL Associates, Inc. s analysis of U.S. Department of Education, National Center for Education Statistics, IPEDS finance data. 9 Baum, Elliott, and Ma, Estimate developed by JBL Associates, Inc. from the U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System, Finance survey data, 212 and Based on JBL Associates, Inc. s analysis of U.S. Department of Education, National Center for Education Statistics, IPEDS enrollment data. 12 Hurlburt, and Kirshstein, Unless otherwise noted, the reported compensation data for full-time faculty members represents those on 9/1-month contracts 83 percent of all full-time faculty members.

14 22 THE NEA 215 ALMANAC OF HIGHER EDUCATION 14 Based on JBL Associates, Inc. s analysis of U.S. Department of Education, National Center for Education Statistics, IPEDS human resources data. 15 Kezar and Maxey, U.S. Department of Commerce, Census Bureau, Curators of the University of Missouri, Harvey, Coalition on the Academic Workforce, 212. REFERENCES Baum, S., D.C. Elliott, and J. Ma. Trends in Student Aid, 214. Washington, D.C.: The College Board, 214. Available: and J. Ma. Trends in College Pricing, 213. Washington, DC.: The College Board, 213. Available: college-pricing-213-full-report.pdf. Coalition on the Academic Workforce. A Portrait of Part- Time Faculty Members: A Summary of Findings on Part-Time Faculty Respondents to the Coalition on the Academic Workforce Survey of Contingent Faculty Members and Instructors (212). Author, Curators of the University of Missouri, The. The Affordable Care Act (ACA). Available: Harvey, N. College Limits Part-time Staff s Hours to Avoid Obamacare Costs, Aspen Daily News Online. March 17, 214. Available: Hurlburt, S. and R.J. Kirshstein. Spending: Where Does the Money Go? A Delta Data Update, Washington, D.C.: American Institutes for Research, 212. Available: default/files/products/delta-spending-trends-production.pdf. Kezar, A. and D. Maxey. The Changing Academic Workforce, Trusteeship 21 (3) (May-June, 213), Available: U.S. Department of Commerce, Census Bureau. Poverty Thresholds Available: hhes/www/poverty/data/threshld/index.html. United States Department of Labor, Bureau of Labor Statistics. Earnings and Unemployment by Educational Attainment Available: emp/ep_chart_1.htm.