The economic health of private historically black colleges and universities : 1986-1995

This study describes the differences between economically healthy and unhealthy historically black colleges and universities(HBCUs)over the 1986-1995 period. Using Inflation-adjusted data from the Integrated Postsecondary Education Data Systems(IPEDS),differences were reported in full-time equivalent(PTE)student enrollment,total current funds revenue,and total education and general(E&G)expenditures.In addition to finding significant differences between economically healthy and unhealthy HBCUsin grand and annual total current funds revenue and E&G expenditures,the study found significant differences in various revenue and expenditure categories per PTEstudent. Despite the lack of statistically significant differences in total current funds revenue and total E&Gexpenditures perPTEstudent,economically healthy and unhealthy HBCUsexperienced significant per PTE student differences in all revenue sources except federal government revenue and in the E&G expenditures categories of institutional support,instruction,research,plant operations and maintenance,public services,and academic support.The study concluded that despite the opinions of some members of the higher education community that HBCUs were suffering economic distress due to excessive expenditure growth,differences in total current funds revenue growth had the most significant impact on the economic health of private HBCUs,not expenditure growth.During the 1986 — 1995 period,economically healthy HBCUsexperienced compound growth rate of 22.5% in total current funds revenue,whereas,economically unhealthyHBCUsexperienced a decline of.36% in revenue growth. By Comparison,E&G expenditures grew 19.3% for economically healthy HBCUs and declined by 6.64% for economically unhealthy HBCUs. The study recommended that economically unhealthyHBCUssecure more revenue and continue to decrease expenditure growth as a means of improving their overall economic health. Furthermore,the study recommended that economically unhealthy HBCUsconsider past inflation-adjusted revenue and expenditure growth patterns as they establish fundraising goals and spending priorities,engage in future financial planning initiatives, and implement administrative management decisions.