When the State University of New York put out a request for bids for a new roof on an athletic facility at SUNY Maritime in New York City, no shortage of contractors sprinted to grab the business, including West Harrison-based NUA Construction Corp. which submitted one of the lowest bids.
As the SUNY system and other colleges cut budgets, however, increasingly vendors are being left out in the cold, particularly in areas like cosmetic renovations where work is being put on hold, or travel services where budgets have been frozen.
While contracts are proceeding for work that cannot be delayed ”“ for instance, the new roof at SUNY Maritime or elevator work at SUNY Geneseo in upstate New York ”“ nearly four in 10 colleges nationally have slowed the pace of construction and renovation, according to a recent survey by the National Association of Independent Colleges and Universities (NAICU).
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Another 16 percent of survey respondents reported canceling outright any projects as a result of the recession. The recession also has had a broad impact on other services that universities have traditionally outsourced. Some 44 percent of institutions polled said they have restricted travel in the past year, among 15 measures to control costs while limiting the impact of the recession on their student bodies.
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In the aggregate, private colleges actually expect enrollment to tick upward slightly this fall at 0.2 percent overall, according to the NAICU survey, but plenty of schools indicated they expect declines.
That in turn is having an impact on the businesses that supply products and services, either for one-time expenditures or on an ongoing basis ”“ and a larger impact on the overall economy.
In one of the latest studies illustrating the financial muscle wielded by colleges in the Northeast, earlier this year the Connecticut Center for Economic Analysis estimated that the state”™s 16 independent colleges and universities spent more than $100 million annually on various capital projects, for about a $450 million economic impact taking into account the ripple effect of additional spending from those expenditures.
“Stability is an under-appreciated element of the economic impact of these schools,” said Judith Greiman, the study”™s author. “Colleges and universities don”™t move out of state or outsource operations overseas.”
While tuition and fees at independent, four-year colleges are slated to rise again this fall at 4.3 percent, according to NAICU, that was the lowest percentage increase since the 1972-73 academic year. Last year tuition and fees rose 5.9 percent, and hikes have average 5.5 percent the past decade.
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In a bid to keep up demand ”“ meaning bodies in seats ”“ institutions are also raising their financial aid programs by 9 percent on average.
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“Private college and university budgets have been hit by dropping endowments, a reduction in charitable giving and growing student financial need,” said David Warren president of NAICU. “Freezes and cuts in other campus budget areas ”“ construction and renovation, salaries and benefits, and travel and other staff expenses, to name a few ”“ have allowed institutions to use those savings to temper tuition increases and keep student aid available.”
Last year, Vassar College eliminated loans from the financial aid packages of students whose family incomes are below $60,000, with the Poughkeepsie school replacing them with grants.
In New York City, Columbia University pledged not to charge tuition, fees or room and board for undergraduates from families below that level of income.
