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Summarizing the data on enrollment; the outstanding fact is that in both 1943-44 and 1944-45 the enrollment in all of the higher educational institutions of the country was barely half (54 percent) of what it was in 1939–40. (See tables II, III, IV, and V, appendix.) This loss was unevenly distributed both among types of institutions and among institutions of the same type. Serious as is the situation in terms of the national average, it becomes much more serious for certain types of institutions such as men's colleges and teachers colleges. Its full significance is seen only when analyzed on the basis of individual colleges, some of which now have only 10 percent of their 1939–40 enrollment. Instructional and research staffs.

In the analysis of instructional and research staffs similar variability is evident but not nearly so marked. For all institutions by 1943-44 the total number of faculty members had declined only to 97 percent of 1939–40; and in 1944-45 to 90 percent (table VII, appendix). Women have been appointed to replace men teachers as shown by the fact that, while men faculty decreased to 92 percent in 1943-44 and to 84 percent in 1944-45, women faculty members increased to 110 percent in 1943-44 and to 108 percent in 1944-45.

The decrease in number of faculty members was not commensurate with that of student enrollment partly because the statistical tables included in this report pertained only to civilian student enrollment while the table on faculty personnel pertains to those required to teach both civilian students and those in the military programs.

It should also be pointed out that the data do not differentiate between full-time and part-time instructors, and in many institutions full-time members of the staff were replaced by part-time instructors, often with persons of less training and experience. Many members of college faculties have left their college positions for services in the armed forces or for employment in Government or war industries. Absolute decline, even though moderate, when combined with replacement by part-time instructors, clearly indicates that many of the full-time faculty members have not been replaced at all. For example, a separate study (Junior College Journal, May 1944) is based on reports from 281 junior colleges in 1943–44. Normally these institutions had 6,850 faculty members, of these 1,637, or 24 percent, had left their institutions for war service. It is probable that the figure would be even higher for senior colleges and universities with their larger number of specialists and with the additional number leaving in 1944-45.

Another reason for the fact that the total number of faculty personnel in reporting institutions did not decrease significantly is that many transferred from institutions with low enrollments and no military programs to those which had research and military programs. Then, too, institutions still had to meet the instructional needs for accelerated courses. It was also necessary to maintain sufficient staffs to provide instruction in required courses, even though the number of students in such classes was sharply reduced.

An analysis by individual institutions more accurately indicates the true situation. Many colleges and universities have reduced their total instructional staff by more than 50 percent, an extreme instance being a reduction in one of the men's colleges without a military program from 99 to 22 faculty members.

The influence of these changes upon the effectiveness of instruction can not be measured, but they have created a serious problem for many institutions. It is a situation that, if permitted to continue or to grow progressively more serious, will undermine higher education in terms of its valuable asset—its faculty.

Income and expenditures of colleges and universities. The changes in the income of colleges and universities also vary greatly depending upon the type of institution. Furthermore, the sources of income of certain groups of institutions have shifted radically. The main sources have been student fees; Army and Navy contracts; other contract services for the Federal Government; continuing Federal, State, and local appropriations; and gifts.

Student fees for instruction.—The changes in income from student fees for instruction in various types of institutions of higher education during the past 5 years are shown in table VIII (appendix). For the 702 institutions reporting, income from this source in 1943-44 and 1944-45, respectively, was 67 percent and 64 percent of that in the base year. In all of these financial statistics it must be recalled that those for the year 1944-45 are estimates made by reporting officers in September 1944. While actual income may vary slightly from the estimates, nevertheless, they are indications of general trends. It is obvious that income from fees for instruction has varied with changes in enrollments, as summarized in table II (appendix). The decrease in income from this source has not been as marked as the decline in enrollment when averaged for all institutions, due primarily to the fact that many, which are publicly administered, charge no tuition fee or only a low tuition fee. Hence, loss in enrollment is not reflected proportionately in loss of income from students. It is, however, reflected in total income since student enrollment is an important factor in determining the amount of State appropriations to the institution.

Again, as in the case of enrollment, a more accurate picture is presented by analyzing the figures by types of institutions. For example, women's colleges show an increase to 109 percent and 112 percent in the income from student fees as compared with 1939-40. Coeducational institutions show a decrease to 67 percent and 64 percent for the respective years. The income in men's colleges was reduced more than half, or to 45 percent in 1943–44, and it was further reduced to only 39 percent in 1944-45.

Army and Navy contracts.This source of income has becn of crucial importance to a considerable number of colleges and universities. These are shown as the 294 "civilian and military" group in table VIII (appendix) and these 294 institutions are further analyzed in tables IX and X (appendix). An analysis of individual institutions shows that for the year 1943-44, these contracts accounted for 50 percent or more of the income of certain men's colleges and to a lesser degree but still of a substantial amount of the income in many coeducational institutions. As stated earlier in this report, the peak of the Army-Navy training programs in the colleges and universities was reached in December 1943 and is reflected in the financial statements for the year 1943–44.

The financial effect of the reduction of the military programs since December 1943 is forcefully evident in the large decline in income estimated to be received by the colleges from this source in 1944-45. For 1944-45, as shown in table IX (appendix), this income was estimated to be only 37 percent of the amount received in 1943–44 by the 294 institutions reporting. In view of the fact that these programs will without doubt, continue to decline throughout 1945–46, this source of income will soon be totally withdrawn except in those few institutions that will be fortunate enough to participate in plans that the Army or Navy has for R. 0. T. C. and a limited number of programs described in a later section.

When this source of income is broken down by types of institutions, it is significant to note that, for reasons indicated earlier in this report, only 11 of the 600 junior colleges reported such income and that their estimated income from this source for 1944-45 as compared with 1943-44 is much more seriously curtailed than for the 4-year institutions. Only 22 percent of all teachers' colleges and normal schools reported such contracts, and the resultant income curtailment for 1944-45 was greater than that of other types of 4-year institutions,

It is important to note, too, how this source of income was distributed among colleges in relation to their size. As shown in table X (appendix), there were 294 institutions reporting income from this source. Of this number, the 137 institutions with enrollments of 1,000 or more received 78 percent of these funds. The 30 very large ones (10 percent of the total number) received 44 percent of these funds.

The 157 institutions with less than 1,000 students each in 1939–40, although they are more than half of the reporting institutions, received less than a quarter of the Government funds. The 24 institutions with enrollments under 300 received less than 2 percent of the Government funds.

With the curtailment of the Army and Navy training programs, the number of institutions receiving such income in 1945 will be reduced to less than 100. Payments to colleges and universities for Army and Navy training programs will have decreased by 1945–46 to less than 30 percent of their peak in 1943–44.

Other Federal contracts.-Income from Federal contracts for other purposes than for Army and Navy training programs-research, E. Š. M. W. T., and others discussed later in this report—was also unevenly distributed among the institutions of higher education. These contracts provided employment for comparatively few fulltime members of college faculties and were negotiated on a cost basis. Like the Army and Navy college training programs, these programs were developed to meet the needs of war; but unlike the Army and Navy programs, they were of little financial assistance to participating institutions.

Continuing appropriations from public funds.-In an earlier section of this report it was pointed out that public funds-Federal, State, and local-have long been an important source of income to publicly administered institutions of higher education. The total of $145,000,000 in 1939–40 was increased to $170,000,000 in 1943-44 and dropped slightly to an estimated $168,000,000 for 1944-45 (table XI, appendix).

Federal: The income from continuing Federal appropriations provided for by legislation enacted prior to the war-such as the Morrill Acts (1862 and 1890), the Hatch Act (1887), the Adams Act (1906), the Nelson amendment (1907), the Purnell Act (1925), and the Bankhead-Jones Act (1935) must be included but with qualifications.

These funds have been allocated in amounts according to the original provisions of the acts. As such, they have provided a stable source of income for carrying forward the specific types of activities for which they are appropriated-largely agricultural extension programs and the work of experimental stations. Such funds are restricted to publicly administered institutions or to publicly administered units in a few of the larger private universities.

State: Appropriations by States for higher education also provide a continuing source of income to publicly administered institutions within the State. There is a relationship between the amount of such funds made available within each State for higher education and the resources of the State. The types of institutions supported in whole or in part by State appropriations are: State universities and landgrant colleges; teachers colleges; approximately one-fourth of the public junior colleges; and, a limited number of technical schools. In approximately one-half of the States, public money cannot be allocated to privately administered institutions. In the few States in which public money is available to private institutions, it is usually restricted to the specific purposes included in the legislation establishing such special funds. State funds have thus been available to publicly administered institutions only and have been of no assistance to the more than 1,000 privately administered colleges and universities.

Local: This source includes funds allocated by municipalities and, as in the case of State funds, is limited to use by municipal universities and colleges. There are less than a score of municipal colleges and universities and approximately 200 junior colleges thus supported, at least in part.

Thus funds from Federal, State, and local governments have provided a reasonably stable source of income for publicly administered institutions. A very small portion of these funds, and then only in specialized fields, is available to privately administered colleges and universities. State and local funds tend to vary with the economic resources of the unit of taxation.

Gifts.- No detailed analysis of gifts is included in this report since the amounts vary so widely and are subject to such restrictions as the donor may establish. "A number of institutions report special drives to procure emergency funds from alumni and friends. It is obvious that such drives quickly reach a point of diminishing returns.

Relative importance of sources of income.—The relative importance over the years of different sources of income for colleges and universities will be analyzed later, but their importance in relation to the above data is graphically shown in figure 1 (appendix). For privately administered institutions, income from student fees accounts for approximately half of the total income; in publicly administered institutions fees paid by students provide only one-sixth of the total income. Public appropriations make up 70 percent of the income of the latter but, as previously stated, they are influenced by the number of students enrolled.

However, any influence which decreases income from student fees adversely affects privately administered institutions much more than those which are publicly administered. Thus a loss of 60 percent in student fees in the privately administered men's colleges creates, on

the average, a decrease of 30 percent (60 percent of 49.6 percent) in the total income of these institutions; but of less than 10 percent (60 percent of 16.6 percent) in the total income of similar institutions publicly administered. When also accompanied, as now, by a decline in gifts, which make up 13 percent of the income, the situation facing the privately administered institutions becomes a matter of public concern. Expenditures for current operations.

In interpreting the statistics of colleges and universities in regard to the expenditures for instruction and for other items of operation, several facts must be kept in mind:

1. Since the base year 1939-40, costs of operation, such as wages, salaries, and prices of materials and equipment, have risen in line with the general increase in costs of living and commodity prices, estimated at from 25 to 40 percent depending on the index used. Consequently, it has not only been impossible for institutions of higher education to decrease operating expenditures for education and general purposes in proportion to the decrease in enrollment, but in most institutions the absolute cost has increased.

2. In almost all institutions increased expenditures for wages and salaries have been necessary, owing primarily to the following factors:

(a) Greatly increased year-round teaching loads because of the acceleration of both civilian and military instruction through year-round study, instead of for the usual academic year of 9 months.

(6) Competition with Government employment and with wages paid in war industries. Instructional load has remained heaviest in the very fields (science and mathematics) in which the needs of industry and Goverment have been the most acute.

(c) The rise in the cost of living.

(d) Increased personal taxes. 3. The necessity for continuing some members of the faculties although they may have relatively light teaching loads. This has been due to two factors: the need of continuing a minimum number of courses in all major fields of study, and of meeting the course requirements for professional preparation in such fields as medicine and dentistry even though classes were frequently very small. A limited number of faculty members on tenure were also retained with a small number of classes, frequently with few students, because these persons could not be utilized as instructors in fields in which there were greatly increased needs and because they could not meet the qualifications for positions in Government, industry, and military service.

4. Increased expenditures for instruction and other costs of maintenance and operation, because of the unusual demands placed upon those colleges and universities under contract for Army and Navy and other Government training programs.

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