Moody’s Report Forecasts a Gloomy Future for Public Universities - Eric Kelderman, Chronicle of Higher Ed

While figures for the flagship institutions were more positive, the data over all put public colleges on a path to economic oblivion. “The developing trend of expense growth outpacing revenue growth is unsustainable,” said Emily Schwarz, an assistant vice president at Moody’s, in a statement touting the report. In addition, political pressure to limit tuition increases and little expectation for big improvements in state spending mean that public colleges will have to continue to cut costs for the foreseeable future, the analysts conclude. “While cash flow at most publics still remains ample, we expect universities will engage in deeper expense cuts to compensate for slower future revenue growth,” the report said. http://chronicle.com/blogs/bottomline/moodys-report-forecasts-a-gloomy-future-for-public-universities/