Ca$h course: as public universities secure less money from the state, they're hunting for new sources of revenue.

• Author: Caley, Nora
• Position: Higher EDUCATION

The cuts in state funding for Colorado's colleges and universities present the schools with an opportunity, not just a temporary setback. At least that's how the leaders of these public institutions of higher education are trying to view the cuts.

These decision makers say they are finding new ways to generate revenue, raise productivity and plan for the future. They also say that although they might seem more self-sufficient, they are not headed toward privatization.

"We are simply embracing a new reality," says Kay Norton, president of the University of Northern Colorado in Greeley. "That does not mean we think the state should not invest in its citizens, but we are trying to be realistic about how we're going to handle the situation."

Stephen M. Jordan, president of Metropolitan State College of Denver, puts it this way. "Our belief is that the issues all of higher education is facing for the near term, the next three to five years, are not going to change dramatically in terms of getting positive overnight. Our approach was to say, 'OK, if that's the case what can we do to help ourselves in this time period?'"

The good news about the state budget cuts is that the American Recovery and Reinvestment Act of 2009 includes funding to avert state cuts to secondary education. In Colorado, the stimulus bill provides $620 million in state fiscal stabilization funds for public colleges and universities to maintain fiscal 2008-2009 funding levels in years 2008-09, 2009-10, and 2010-11.

Jordan says returning funding to usual levels doesn't mean business as usual. Instead of paying for things that had been cut, Metro developed new programs that would help staff work more productively. For example, the school set aside $ 1 million for a capstone program, in which senior faculty agree to retire in July 2012 but stay on until then to help with a project, such as developing a distance education course. Meanwhile Metro would hire a junior faculty member at a lower salary to replace the outgoing faculty member.

Another program hired technology experts to switch certain tasks to an electronic version, such as digitizing student transcripts or updating alumni files so they may be contacted for donations and other communications in the future. Metro also funded two grant writers.

"We fully recognize now is not a good time to be in a capital campaign, but now is a great time to build relationships," Jordan says.

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