Financial Trouble for Colleges Means Financial Trouble for College Towns

Declining state aid, hobbled endowments, and rising debt are hurting the balance sheets of colleges across America. Unfortunately the economies of their surrounding towns, which rely on schools for jobs, customers, and more, are far from immune.

1 minute read

July 24, 2012, 5:00 AM PDT

By Akemi Leung


The recession meant budget cuts, tuition hikes, and job cuts at colleges across the United States, but the effects go beyond the campus gates and into the local communities, reports Douglas Belkin.

He cites the example of Washington State University in Pullman, Washington. In addition to cutting 581 jobs over the past four years, state aid fell by $240 million and undergraduate tuition bumped up from $6,290 to $10,874.

As a result, "Housing prices declined and housing starts fell to a 20-year low, in part because laid-off workers moved away. Students spent less and the city's sales-tax revenue fell by 15%. In response, the city this year slashed its budget by 6%."

To overcome the financial hurdles, Bain & Co. advised: "consolidate, outsource and focus on core strengths." John Burkhardt, director of the National Forum on Higher Education for the Public Good, suggested bringing in more foreign students. With this in mind, tuition hikes might be reigned in and jobs could be saved.

Sunday, July 22, 2012 in The Wall Street Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

15 minutes ago - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

1 hour ago - Cities Today

View from inside car's driver seat while driving.

Car Designs Make it Harder to See Pedestrians

Blind spots created by thicker pillars built to withstand rollover crashes are creating dangerous conditions for people outside vehicles.

2 hours ago - Bloomberg CityLab

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA