"Are More New Jersey Colleges Doomed to Collapse?"

[retired711]

This isn't behind a pay wall. The big problem is that high school graduating classes are going to drop between 2025 and 2032.https://www.nj.com/education/2023/0...-very-very-traumatic-times-official-says.html

 

[srru86]

Yes, the long term demographic decline of traditional college aged people is the underlying macro problem.

The extra Jersey centric wrinkle is for decades, from the late 80's to the Christie college bonds, the State invested zero dollars in capital spending for public colleges. All the building done over that period was borrowed money on the College's, not the State's, balance sheet. While almost all States divested from spending on public higher ed over that period, NJ is close to the front of the pack. Most NJ publics have a lot of borrowed money hanging over them making debt servicing a significant portion of the annual operating budgets.

NJCU is the worst example.

Not addressing the small privates. I won't say I don't care, but a certain Darwinian culling might be in order. We are seeing some of that already.

All that being said, Rutgers won't be unaffected, but we can weather the storm better than most.

 

[srru86]

A really niche example

NY Times

The Second Life of a Christian College in Manhattan Nears Its End​

The King’s College, which draws students from around the country to Manhattan, has not been able to recover from enrollment and financial losses.

Mildly interesting side note. Their path went through NJ. The former Marconi, Later Camp Evans, property in Wall.
Info Age

 

[NotInRHouse]

For some reason it's saying subscriber exclusive for me. I do see the first 3 schools mentioned though.

I do get why a school like Rider is suffering...the pricetag isn't justifiable. Hell, outside of Princeton, and perhaps Stevens with a scholarship, which NJ private schools are?

I don't get why Willy P and NJCU are having the issues they are- are there just less people going to college?

I guess there is some argument for some merger of the "lesser" NJ schools. NJCU has an important role but could it be part of the administration of Montclair or somewhere else? I know a lot schools would love that piece of real estate alone...

 

[srru86]

could it be part of the administration of Montclair or somewhere else?

Montclair is already digesting the former Bloomfield College

 

[retired711]

Yes, the long term demographic decline of traditional college aged people is the underlying macro problem.

The extra Jersey centric wrinkle is for decades, from the late 80's to the Christie college bonds, the State invested zero dollars in capital spending for public colleges. All the building done over that period was borrowed money on the College's, not the State's, balance sheet. While almost all States divested from spending on public higher ed over that period, NJ is close to the front of the pack. Most NJ publics have a lot of borrowed money hanging over them making debt servicing a significant portion of the annual operating budgets.

NJCU is the worst example.

Not addressing the small privates. I won't say I don't care, but a certain Darwinian culling might be in order. We are seeing some of that already.

All that being said, Rutgers won't be unaffected, but we can weather the storm better than most.

I don't think you're right. Rutgers issues bonds to construct dorms. But these are revenue bonds that are paid off through room and board charges. I wouldn't worry about them unless there's a massive (and I mean massive) collapse in the number of kids living in the dorms. Rutgers does not issue bonds to construct classroom buildings. That's why it was so important a few years ago that New Jersey's voters approved a bond issue for construction. Those are state bonds, not Rutgers bonds -- servicing them is the state's problem, not Rutgers'. Rutgers does have a revenue problem, but it's an operating budget problem; the state legislature does not appropriate enough money each year to support Rutgers adequately. So the institution has to either cut back or raise tuition -- an unattractive choice.

 

[NotInRHouse]

Montclair is already digesting the former Bloomfield College

I guess Kean would be an option for NJCU.

I wonder if St Peter's or Stevens could afford it. It's a nice piece of real estate.

 

[retired711]

I guess Kean would be an option for NJCU.

I wonder if St Peter's or Stevens could afford it. It's a nice piece of real estate.

Would the State be willing to transfer the property to a private non-profit? such as one of the colleges you name? I don't know but I wonder.

 

[bigmatt718]

Rider might be in big trouble in a decade or even less. Would Rutgers absorb them as a satellite campus or maybe TCNJ would?