Like Private Businesses, Universities Consolidate to Cut Costs
Wednesday, July 24th, 2013
Workers at the former Augusta State University in Georgia are spending the summer putting up new signs, redesigning the school’s website and carting furniture and files among offices.
There are new T-shirts in the bookstore, new logos on the business cards, a new fight song and alma mater — even a new name, for the first time, on the degrees of students who graduated in May.
What was known as Augusta State University when those students arrived as freshmen has been combined with the neighboring Georgia Health Sciences University to form Georgia Regents University. It’s a kind of private sector-style consolidation that is becoming increasingly common, not only for public institutions, but also for nonprofit, independent ones that can pool their resources and cut their costs in a time of falling budgets and demands for more efficiency in higher education.
“Size matters, even in academia,” said Ricardo Azziz, president of the new, 10,000-student unified school, which he said cut administrative costs by 3 percent in just its first few weeks. “A lot of times, we talk about students preferring small colleges, and that may be true, but it is much more costly to maintain all of the moving parts at a small college than at a larger university.”


