Public Universities May Turn to Financial Exigency to Reduce Operating Costs

Source: Moody’s Global Credit Research, March 02, 2011
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From the press release:
As many US colleges and universities struggle with a weakened capacity to raise tuition and declining government funding, some are likely to consider the controversial step of declaring a “financial exigency” that would allow them to lay off tenured faculty.

Because public universities are accustomed to disclosing their worries over state funding cuts and are more likely to accept the risk of negative publicity than private colleges, they may take this step given current condition, according to Moody’s.

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