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Worldnews

The Great Collapse Of US Higher Education Has Begun

Budget cuts, culture wars and enrolment crashes are pushing American universities off the edge. There is no other way to say it. The American university as the United States has known it since the 1960s is at an end. The spate of college closings and consolidations that began 15 years ago is certain to increase over the next few years. Overall college enrolments peaked in 2010, but have fallen consistently since then, as the cost of college, the COVID-19 pandemic and other trends have curtailed students from attending higher education institutions. But with the recent crackdowns against protests on college campuses, the anti-DEI climate and the US government’s persecution of foreign students, American universities are truly up against a tsunami. The trickle of institutions closing or on the margins is all but assured to turn into a flood between now and the end of the 2020s. Sonoma State University (aka, California State Sonoma) is among the latest universities facing budget cuts. Despite a Sonoma County court ruling that has temporarily put the university’s plans on hold, Sonoma State still faces a budget shortfall of $24m. Even if the order holds beyond May 1, Sonoma State can and likely will work in good-faith negotiations with staff, faculty and students to eliminate upwards of 22 majors, six departments, and more than 100 faculty positions. Specifically, the art history, economics, geology, philosophy, theatre/dance, and women and gender studies departments are on Sonoma State’s chopping block, mostly liberal arts and the social sciences. The most expansive retrenchment in the past decade, though, occurred at West Virginia University in 2023. That August, after a six-year campaign to increase enrolment, West Virginia announced that it incurred a $45m budget deficit, and that enrolment had dropped from roughly 29,000 in 2017 to just under 26,000 in 2023. The austerity plan was to cut 32 majors– including all of their foreign language programmes and its maths doctoral programme – and 169 faculty positions. But after weeks of student protests, the number ended up being 28 majors (nearly one-fifth of its undergraduate majors) and 143 faculty (a 13.5 percent reduction) instead. The sudden shift towards austerity has led to a steady stream of faculty and administrators resigning or taking retirement buyouts to leave West Virginia. Again, the undergraduate liberal arts majors and small academic graduate programmes were the main targets for cuts. Stories like what is happening at Sonoma State and has already occurred at West Virginia are part of a larger and terrible trend. As college matriculation for women has incrementally increased over the past 50 years, there has been a more drastic decline in men attending college, especially among white men. Since 1970, men have gone from 58 percent of all undergraduate college enrollees to only about 40 percent as of the early 2020s. Fully 71 percent of the decline in college attendance since 2010 coincides with the decline of men as students in higher education. Perhaps sexism disguised as disinterest in higher education in the wake of a women-dominant student body might be at least part of the explanation for this steep fall in enrolment. But other higher education institutions are worse off: Clarion University of Pennsylvania, California University of Pennsylvania, The College of Saint Rose in New York and Independence University in Utah, for example. These are among the 76 colleges and universities that have either closed their doors or have merged with other higher education institutions in the US, affecting the lives of tens of thousands of students and several thousand faculty members. Nearly all of these institutions have cited budget shortfalls and lower enrolment as reasons for their demise or mergers. Nationally, the number of students attending US colleges and universities fell from a peak of 18.1 million students in 2010 to 15.4 million in 2021, including a drop of 350,000 students after the first year of the COVID-19 pandemic. As of this past fall, enrolment had climbed to 15.9 million students, a 4.5 percent increase, but hardly enough to stem the tide of closures, austerity and consolidations. According to the Federal Reserve Bank of Philadelphia’s financial stress test model for American higher education institutions, as many as 80 colleges and universities in the US could permanently close their doors by the end of the 2025-26 school year. They based their findings on “the worst-case scenario predictions com[ing] to pass from the upcoming demographic cliff (or a 15 percent decline in enrolment).” Demographers have also foreseen an imminent drop in the numbers of college enrollees starting this fall, a consequence of the economic distress that began the Great Recession of the late-2000s. Then there is Trump 2.0 and his administration’s persecution of foreign college students. The recent crackdowns on academic freedom under former President Joe Biden, with pro-Palestinian college faculty and student protesters, and under mostly Republican governors like Greg Abbott in Texas and Ron DeSantis in Florida over Critical Race Theory and DEI, have escalated under President Donald Trump. The Trump administration’s move to revoke the visas of more than 1,700 foreign faculty and students, and kidnap and deport many others, mostly over pro-Palestine activism and other political stances deemed against the interests of the administration, threatens the one area of sustainable growth in higher education. Neither Alireza Doroudi, Rumeysa Ozturk and Mahmoud Khalil, nor any of the hundreds of other victims of this injustice, have committed any crimes under US laws. Unless going to a funeral or writing an op-ed or exercising the First Amendment right to protest is criminal behaviour. In 2023-24, more than 1.1 million international students attended US colleges and universities at the undergraduate, graduate and professional levels. But with the Trump administration threatening, arresting and deporting foreign students and scholars in their dozens, it is all but certain that international student enrolment from the Middle East and South Asia will drop in the coming year. There will also likely be a drop in students from China as a consequence of the ongoing tariff fight between the two nations. One-quarter of all foreign students in the US are from China. After decades of universities hiring armies of part-time professors instead of full-time, tenure-stream instructors and researchers, and college presidents running their campuses like for-profit businesses, the implosion of US higher education has been almost inevitable. Despite Harvard recently providing the Trump administration opposition to their repression of colleges and universities, top-down hierarchies and disempowered workforces have rendered higher education’s responses to conservative and far-right movements in the US utterly impotent. Add to this the conservative assumptions of liberal arts fields as “immoral,” “indoctrination,” and “libtards” instead of what they really mean: an expansion of one’s knowledge of people and the world. There has also been a decades-long overemphasis on STEM (science, technology, engineering and mathematics). The possibility of Trump’s Project 2025 gurus privatising the federal student loan programme would pretty much be the straw that broke US higher education’s back at this point. Liberal arts departments especially will continue to consolidate, or university administrators will continue to find reasons to jettison them as a cost-saving measure. Ever larger numbers of senior faculty will take severance pay, early retirement, or will end up sacked. Non-tenured faculty and junior staff will simply be unemployed and, in many cases, unemployable in a shrinking US higher education landscape. Most of all, those students who find themselves at any institutions outside of the top 136 elite universities or the top 50 flagship public colleges and universities may no longer be able to afford college, with tens of thousands unable to complete their degrees. American higher education is not just staring into the abyss – it has already fallen into it. The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance. Follow Al Jazeera English:...

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Worldnews

Median CEO Pay In US Hits Record High Even As Markets Tumble

Margins between CEO pay have long been a point of contention between workers and a rallying cry for progressives. Median pay among top United States CEOs rose 7.5 percent to a record $16.8m for 2024, a new study found, as big stock grants have boosted leaders’ reported earnings well beyond the pay received by US workers. The CEOs of Axon and Union Pacific were among those getting big pay boosts from stock awards, according to the review of pay among S&P 500 CEOs by ISS-Corporate, the corporate advisory arm of Institutional Shareholder Services. Other CEOs also did well, as their targets were set during the relatively stable days of 2023, said Roy Saliba, managing director at ISS-Corporate, which oversaw the study. That was before US President Donald Trump kicked off a trade war that has set off turmoil in global markets in recent weeks. “One thing that jumps out is that these numbers don’t mesh with year-to-date stock performance or current company performance, and the looming uncertainty. The time gap explains that the pay decisions for 2024 would have been made at least a year ago,” Saliba said. He said his unit is advising companies to wait before changing plans to adjust pay to account for uncertainty in the markets. Boards could use a different set of performance measures that compare an executive’s work against their peers, he said. Saliba’s study looked at 320 companies in the S&P 500 with pay data filed so far this year. The executives did relatively well. US Bureau of Labor Statistics data shows average hourly earnings for US workers rose 4 percent last year, while Department of Commerce data shows inflation ran at just less than 3 percent in 2024. Company shares performed above those rates, helping drive the CEO’s gains. Among the 320 companies Saliba reviewed, the median total shareholder return was 15.1 percent in 2024. At Axon, maker of the Taser stun gun, CEO Patrick Smith was at one extreme, officially receiving $164.5m last year, up from $40,058 in 2023. In that year, he received only a salary of $31,201 and $8,857 in other compensation, including private air transportation. The stock units that accounted for most of Smith’s 2024 pay are “an incentive for future performance in the form of a high-risk, high-reward compensation plan, and the value is realisable only if and when each set of stock price and operational goals are achieved,” Axon’s filing states. Axon declined to comment. At Union Pacific, CEO James Vena was paid $17.6m for 2024 versus $2m for his service for part of 2023, after he was hired in August of that year. The majority of his pay last year reflects big stock and option awards that a spokesperson for the railroad said are performance-based. “If the company does not perform well, his actual bonus and equity will reflect that and be less,” the spokesperson said. High CEO pay has long been a rallying cry for progressive Democrats in Washington, such as Vermont Senator Bernie Sanders, who has introduced legislation on several occasions that would raise taxes on companies whose executive compensation is 50 to one that of the average compensation of their worker. The legislation has yet to become law. On social media, the senator has long pointed out that the gap between CEO pay and that of the average worker has become significantly wider over the last few decades. Follow Al Jazeera English:...