In the current economic climate, it comes as no surprise that the top item on the agendas of college and university governing boards in 2010, public and independent, was finances. Boards were concerned with: financial oversight, budgets, financial planning, financial modeling, fiscal stability, sustainability, viability, financial equilibrium, budget cuts, increasing net revenue, national and state economic crises, debt management, and shrinking state support.
More than 700 colleges and universities (458 independent and 244 public) participated in a survey of higher-education governance, conducted by AGB in December 2010 and January 2011 and made possible with support from TIAA-CREF Institute. The survey included a wide range of topics related to board engagement, including a question about the top five issues on board agendas during the prior 12 months. This was the second in a series of governance surveys, the first of which was conducted in 2008.
Among the top agenda items for all respondents, public and independent, were four they shared: finances, enrollment, strategic planning, and academic programs. (See Table 1.) For independent institutions, the top five, in rank order, were finances, enrollment, strategic planning, fund raising, and academic programs. For public colleges, universities, and systems, the top five were finances, facilities, strategic planning, academic programs, and enrollment.
Differences among the top five agenda items by sector included facilities, which ranked second on the agendas of public boards and sixth for independents, and fund raising, which ranked fourth for independent boards and thirteenth for publics. What may account for the difference in the importance of fund raising is that the responsibility for fund raising among public institutions is typically shared with or delegated to an institutionally related foundation with its own board, while boards of independent colleges and universities often assume a leadership role in it.
Finances topped both lists in 2008 as well as 2010, but there were some changes since the last survey among other top issues. Facilities rose from fourth to second on the agendas of boards of public institutions; the influx of federal grant money from the American Recovery and Reinvestment Act of 2009 may have spurred construction at those institutions. Enrollment moved up similarly on the agendas of independent boards, perhaps because of the impact of the Great Recession on such institutions and their potential students. Those surveyed gave various reasons why enrollment was of concern. Both public and independent colleges faced problems of affordability, access, retention, and declining numbers of students (the latter mentioned by independent institutions, only), while others (mostly publics) mentioned they were coping with growth and capacity problems from increased demand.
Issues related to academic programs—ranked fourth among top agenda items for public institutions and fifth among independent colleges— included: program review, curricular reform, adding new academic programs, eliminating programs, global education and international programs, online education and distance learning, medical center issues, and assessment of student learning.
Looking beyond the top five concerns, about one-quarter of respondents (24.1 percent) mentioned governance issues, including board education and development, board organization, policies, and bylaws, and recruitment of new members. (See Table 2.) Public boards specifically mentioned issues like board leadership, board civility and disagreements, revisions to board policies, and restructuring the board and committees. Governance issues on the agendas of independent boards included: selection of the board chair, board assessment, board development, board member recruitment, and updating bylaws.
Financial aid and tuition was reported as a top issue by 27.8 percent of public institutions and 11.6 percent of independent colleges and universities. Need-based aid, setting tuition and fees, and room and board rates were mentioned by respondents from both sectors, and to these independent boards added the discount rate.
Other agenda items reported by less than 14 percent of respondents (in rank order) included accreditation, human resources, presidential search and transition, branding, campus master plans, faculty, and investment or endowment.
The complete report of the 2011 AGB Survey of Higher Education Governance will be available for purchase from the bookstore at www.agb.org in the summer of 2011.
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