Second, there has been a substantial increase in “wraparound services” that “provide broader student support, such as mental health, entertainment, intramural sports, academic support, workforce preparedness, and initiatives focused on diversity, equity, and inclusion.”26
No doubt, such services are in demand. And some – like mental health services – rank among the highest priority of college president concerns (in an October 2021 pulse survey, 72 percent of college presidents identify mental health as a pressing concern).27 But such services in general – and the staff required to support such – are putting competitive pressures on institutional budgets, particularly as the generally salaried and/or hourly pay of administrative positions are paid significantly more than faculty (tenured or not).
Additionally, colleges now provide a wide array of services which were not the case 25 to 50 years ago. Fitness centers, gaming rooms, singles in dormitories, large lounge and study areas outside of classrooms and libraries, large career centers, are just a few of the areas which are expected by students and their families.
Finally, unrestricted annual funds are shrinking. Donors are now restricting their giving to what they believe is important instead of donating to the institutions and allowing the institutions themselves to prioritize. And less people are giving. As student debt takes its toll, people simply do not have the ability or the willingness to make a gift to their alma mater.
Deferred Maintenance
And many people refuse to acknowledge the elephant in the room at many campuses – deferred maintenance, an issue that has a long history of being ignored. Consider, for example, an industry report by Sightlines. In that report, it was found that deferred maintenance at U.S. colleges and universities exceeded $1 trillion in 2015, or $100 per facility square foot. The expense of deferred maintenance represents a 20 percent increase in per-square-foot cost since 2007, significantly outpacing inflation during the period.28 Many campuses face $50 million to $100 million or more in deferred maintenance costs.
And no end is in sight. A 2023 Gordian report, “State of Facilities in Higher Education,” found “the scale of deferred capital renewal at schools has reached a level that cannot be tolerated—a 36 percent shortfall. This gap is simply not possible to fund given the new financial realities.” Moreover, “deferred capital renewal costs are projected to climb to above $133/GSF or more than $133 million for every 1 million SF of existing campus facilities.”29
Why this is happening is no secret: 75 percent of campus facilities across the country are 30 to 40 years old.30 Renovations and upgrades to HVAC, plumbing, electrical, and building envelope improvements like windows and roofing are required for health and safety as well as to comply with building codes and the Americans with Disabilities Act (ADA) regulations. The irony is, of course, that regulations often apply only when renovations or upgrades happen – which serves as an excuse for simply delaying action, which in turn only exacerbates the problem. But waiting compounds everything. Consider energy costs, by way of example: according to the U.S. Department of Energy, higher education institutions spend over $6 billion on annual energy costs across 5 billion square feet of space – and the U.S. Environmental Protection Agency estimates that 30 percent of this energy is wasted.31
How big is the problem? APPA estimates that colleges and universities are facing an urgent deferred maintenance backlog of more than $112 billion.32 And this doesn’t even address new improvements that need to be made to address contemporary realities. Consider, for example, the need for modern technology infrastructure to not only meet the bandwidth required to support the technology needs of students (academic, communications, gaming, etc) who own on average three devices, but operational needs that facilitate digital learning, run
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