It didn’t take Kirk Schulz long to make a splash as president of Washington State University. And while his call for fiscal responsibility is a prudent one, it brings into focus some of the issues facing major colleges these days.
Schulz, who officially assumed office on June 13, grabbed a bit of attention by taking a pointed look at WSU’s finances. “In short,” he wrote in an open letter, “we have been spending more money annually over the past couple of years than has been brought in, which is simply not sustainable. As a University we are spending down central reserves at a significant rate and will need to make some adjustments as to how we budget future building projects and new University initiatives.”
The spending is easy to pinpoint. WSU, enjoying a time of record enrollment and rapid development, recently funneled $132 million into capital projects. According to the Associated Press, the university also has projects worth $212 million under construction, and another $240 million worth of projects are in the design or planning stage. Schulz noted that school officials have not identified funding sources for many of those projects, and that some were approved by regents “without a robust financial analysis.”
State universities are unique entities. They are a business, which must follow the best practices of private enterprise, but also are charged to serve the public good. A majority of financing comes from a combination of student tuition and funding from the state Legislature, and the goal is to keep a top-flight education within reach of the state’s brightest students. Higher education is an investment that can pay benefits for all of a state’s residents. Capital projects can help attract worthy students and can enhance their educational experience.