USNH Chancellor - Higher Education Not immune to Economic Downturn and Will be Challenged in 2009

Chancellor Stephen Reno provides an overview of higher education in NH to more than 400 attendees of Business New Hampshire Magazine’s Industry Forecast event

January 27, 2009 – Bedford, NH – The University System of New Hampshire (USNH) Chancellor Stephen Reno told an audience of about 400 that despite significant budget pressures facing nearly every sector of the economy, there are some bright spots, including the fact that more students are graduating from college and pursuing additional educational opportunities. Chancellor Reno provided the industry forecast for higher education as part of Business New Hampshire Magazine’s annual event that features leaders in several industries who provide similar forecasts for energy, health and wellness, economic development, technology, and real estate.

In his presentation, Chancellor Reno cited many current trends that have positive and negative impacts on colleges, students, and economic development in the state. Taking a longer look at the state’s economy, he said “beyond the current rising rate of layoffs and unemployment, we know the importance of ensuring for New Hampshire a supply of well prepared college graduates.”

He highlighted changes in New Hampshire’s educational pipeline between 2004 and 2006 based on data from the National Center for Higher Education Management Systems. The 2004 data showed that for every 100 9th graders in the state, 76 will graduate from high school, 42 will immediately enter college, 31 will still be enrolled in their sophomore year, and 24 will earn a four year degree. The 2006 data showed improvement in every category, with 79 graduating from high school, 51 immediately entering college, 36 enrolled as sophomores, and 29 earning their four-year degree.

For the forecast, the Chancellor cited negatives including the following:

Tough budget times resulting in endowment losses, givebacks to the state, and deficits
Declines in philanthropy
High tuition rates and tightened lending, which could lead some prospective students to turn away from college
High debt burdens for NH college students

Some positives included the following:

Aggressive cost containment and revenue enhancements efforts on many campuses, including all of the public four year colleges in the system – the University of New Hampshire, Plymouth State University, Keene State College, and Granite State College
New pathways put in place to enable students to more easily earn a four year degree, specifically the new NHTransfer.org transfer database and the Connections Program
Significant future employment needs will exist in the State’s knowledge economy and in “middle skills” jobs due to a large cohort of retirees in the next several years
Increasing use of technology in the classroom and in teaching
Strong college enrollments in NH
New Hampshire is better positioned today as a good place to be for young professionals and new college grads to launch and grow their career

A summary of Chancellor Reno’s remarks can be found on the USNH web site at http://www.usnh.edu/media/press/docs/Industry%20Forecast,%202009.pdf.

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