Early signs of what may be a trend are beginning to show up.
For example, Loyola University New Orleans (LU-NO) recently laid off 18 non-faculty employees (2% of its workforce) as part of a plan to deal with a deficit caused by much lower than expected freshman enrollment last fall, The Times-Picayune reported. In addition, LU-NO announced that contracts of 12 non-tenured faculty members would not be renewed.
What's happening is that the government's "investment" in funding college tuition--after all, don't forget that a college education is a "basic right" according to the President Obama--isn't proving attractive enough for young people to place themselves on the indebtedness hook. Some have figured out they can make more money in a trade over a lifetime. Others have figured out they can live at home with Mom and Dad, work less than 30 hours/week, and receive federal subsidies for healthcare, welfare, and unemployment benefits. If this trend continues, it will first show up in the collapse of tuition-dependent institutions, like LU-NO, and ultimately, state systems.
Tuition-dependent institutions like LU-NO will be hit particularly hard because they are balancing their budgets on the backs of adjunct professors who teach foundational, "101" required courses. Many adjuncts will not survive the first round of lay offs. Then, the basics of budgeting will eventually move up the feeding chain to all of those tenured radicals who have been favored for decades with reduced teaching loads--so they can publish articles even their Moms wouldn't read in their comrades' vanity journals--will be required to teach a full load for the same or, in some instances, even less pay...meaning no more annual salary increases as has been customary for the past several decades. Their socialist dream will have come true in their own playground!
All of this is due to free market forces. Unfortunately, the tenured radicals believe they can control those forces through central planning. While they do control the nation's universities and colleges as well as their reward systems, they do not control the rational economic decision makers who ultimately pay for those rewards. They're opting out, voting "No" to investing in what promises indentured servitude.
Let the discussion begin...
To read the Times-Picayune article, click on the following link: