Capture savings—without cutting programs

In hopes of reallocating resources toward strategic priorities, many college and university administrators look to cut or restructure less effective programs in order to rededicate funds to stronger ones.

But program cuts are politically difficult to carry out and rarely deliver substantial savings when they do happen.

The largest cost of running an academic program comes from tenured faculty, but few institutions are willing or able to eliminate those positions even when they shutter a program.

The most savings administrators can hope for from program cuts is the elimination of administrative staff and part-time faculty positions. But because programs take a long time to sunset, it can be years before institutions realize even these limited savings.