Utah’s university and college presidents need to better scrutinize what programs they offer — and should cut those that aren’t graduating students, leading to high-paying jobs or supporting the state’s workforce needs, according to a critical new audit released Tuesday.
But that will have to start with schools tracking data on the “success” of their degrees and programs, which they aren’t currently doing, according to the report from the Legislative Auditor General.
At this point, college leaders don’t know specific program costs, enrollment rates, completion rates, employment demands or future graduate earnings to help decide what to cut. And auditors say it’s leading to waste and “inefficiency” in higher education instead of necessary action.
“Accessing and using this information can help presidents determine how best to invest student and taxpayer money to achieve the greatest benefit,” the audit states.
Most of the report’s 58 pages critique the state’s eight public colleges and universities for not being more nimble and either quickly expanding or discontinuing programs in reaction to performance numbers. The focus is on improving “efficiency,” a word repeated more than 30 times in the findings and recommendations.
The audit came at the request of Utah lawmakers, who have in recent months targeted higher education and appear poised this coming legislative session — set to start in late January — to approve major funding cuts for colleges and universities. So far, Utah House Speaker Mike Schultz has suggested a 10% reduction or shifting of funds.
Lawmakers already approved a $20 million, or 1.5%, cut this past spring for higher education. And they reallocated money that was going to diversity, equity and inclusion efforts on campuses across the state.
The audit confirms that legislators are now considering trimming budgets for any academic programs considered low-performing, while reallocating money for those that meet their desired metrics.
The report doesn’t mention liberal arts programs by name, though faculty members across the state have expressed concern that those will be targeted. Meanwhile, it does suggest expansions for health, science and business career offerings.
“It puts a lot of data behind what we’re hearing out in the marketplace, both from students at the universities and employers,” Schultz, R-Hooper, said during a legislative subcommittee meeting about the audit Tuesday evening.
The audit and the proposed cuts are both built off of the the passage last session of SB192, a bill that increases the power of university and college presidents — giving them unilateral authority to shutter programs that aren’t providing a reasonable return. It’s up to them to determine what that is.
So far, the audit says, it’s too soon to judge the impact of the bill. Presidents haven’t closed programs because they don’t have the data they need. The report pushes for those numbers to be calculated so institutions can make cost-saving decisions, reduce program duplication and instead be more “market responsive” to jobs that need to be filled in Utah.
“Taxpayers and students pay the price of inefficiency,” the audit states.
What are the metrics?
(Leah Hogsten | The Salt Lake Tribune) Weber State University's Automotive Technology program students, from left, Cameron Goff, Kevin Camarena and Alex Leigh share a laugh while locating parts on a Tesla Model SP100D at the Layton campus, Sept. 19, 2022.
The talk of cuts and efficiency comes as enrollment this fall was up across the board at every public college and university in the state — breaking records and surpassing any growth percentage in the last decade. But that trend is not expected to hold.
Enrollment both here and at colleges across the nation is forecast to decline. Other states have already seen their numbers dip, and universities have had to shut down entirely or merge programs and lay off faculty to stay afloat.
“These states provide a glimpse of the current condition of higher education in the United States and the realities Utah may face in the future,” the audit states. “We believe that Utah’s higher education institutions may experience similar tough decisions if they do not act proactively now.”
Utah’s big enrollment drop is forecast for 2032 — with numbers continuing to dip for a full decade after that, according to new population data analysis from the University of Utah’s Kem C. Gardner Policy Institute that is cited by the auditors.
Growth is predicted to slow as soon as 2026. And fewer students enrolling means less money from tuition and fees.
Auditors say the primary motivation for students to attend higher education, according to both a local survey from Envision Utah and a national poll conducted by Gallup, is to improve their employment outcomes — landing high-need and higher-paying jobs.
That’s what Utah’s colleges and universities should be focused on providing, auditors argue, in order to attract people to enroll.
(Southern Utah University) The campus of Southern Utah University. A new audit calls on Utah colleges and universities to analyze which of their programs are "successful" in graduating students and landing them in high-paying jobs and cut those that don't show a return.
The audit recommends that the state commissioner who oversees the Utah System of Higher Education develop a uniform method of assessing the success of programs. The system should also study where employers are relaxing degree requirements and no longer requiring that applicants have a bachelor’s.
“Let’s quantify this data and be more deliberate in the programs that we’re offering,” said Matthias Boone, one of the auditors who worked on the report, during the legislative meeting Tuesday.
In place of program-level specific data at each school, auditors looked at blanket job outcomes for students who graduated from all state institutions with bachelor’s degrees in 2018.
Two programs, they found, had graduates earning an average of less than $30,000 annually — the federal poverty level — five years after completing their degrees. Another 21 programs had graduates earning less than $45,000, which is 150% of the poverty level. Utah’s median wage is $60,000.
The auditors also critiqued 32 programs that had 60% or fewer students who stayed in Utah to work or who went on to get a masters or Ph.D. within five years instead of contributing to the workforce. The specific programs were not named.
The report says that the metrics should be looked at holistically, without relying on one single number to make a decision. Low enrollment in a program alone, for instance, might not be enough information.
“It was reported that although one program at an institution produces few graduates each year, that program contributes to a significant portion of the industry’s national workforce,” the auditors wrote. “We note nuances exist.”
It also adds that some fields may generally see low pay or low job placement, but “we acknowledge that some programs may provide a social good that transcends pay considerations.”
Still, presidents should start to look at these numbers and determine where they can make cuts, auditors say.
Opportunities to expand — like nursing programs
Workforce demands in particular should also indicate where universities could expand programs to meet state needs, the audit notes. The primary example is nursing.
Historically, Utah schools have not been able to accept as many qualified students who apply for nursing programs. A previous audit found that between 2007 and 2014, 35% of qualified applicants for public bachelor’s nursing programs in the state were turned away.
That’s resulted in far fewer nurses than needed — and it’s also pushed many students to attend private nontraditional schools instead, such as Western Governor’s University and Joyce University of Nursing. That means their tuition dollars aren’t going to the state.
“We believe if institutions are slow to meet market demand, the market will find a replacement for their services,” the audit states.
Between 2016 and 2022, the Utah System of Higher Education saw a 14% loss in its market share of students in nursing. Private nontraditional schools, meanwhile, experienced a 24% gain.
Schultz said he’s “extremely concerned” by that number.
The Utah Legislature has invested $9 million in higher education to support increasing capacity for in-demand jobs, including nursing, since 2019, according to the audit. And auditors say there has been success at Weber State University and Utah Tech University with nursing.
But programs aren’t expanding quickly enough, auditors argue. The report provided similar numbers for the need for accountants.
Schultz questioned the hold up Tuesday. The auditors said their report didn’t delve into that, but they suggested it was at least partly because nurses tend to make more working in the field than they do serving as instructors, making it hard to hire faculty.
The auditors also instructed the Utah System of Higher Education to explore why students are choosing alternative schools — which can cost double the tuition of public schools. Boone questioned whether it’s because the programs are often accelerated, meaning students can get in and out quicker.
Meanwhile, programs are being added without justification, the auditors say, when resources would be better directed to jobs that are needed, including software developers and data scientists. And some schools are adding duplicative programs that are already being offered.
They reviewed 60 proposals for new programs (or programs with a new emphasis) that have been presented at Utah’s colleges and universities since 2015. In many cases, they say, the institution “failed to demonstrate market need for the program or justified a program because it is a program offered by a peer or other institution.”
That’s not to say that schools can’t have the same programs — if there’s a demand, auditors noted. But duplication is rarely studied, they said, and more often a waste.
(Al Hartmann | The Salt Lake Tribune) Jirapat Sakkaphun works with her teacher and adviser Candice Williams, taking blood pressure readings in the nursing lab at Salt Lake Community College Jordan campus Thursday, May 4, 2017.
For example, in 2022, four institutions in the state had the same program and collectively only graduated 14 students that year. Another four institutions had the same program and graduated 20 students total.
The auditors point to that as unnecessary duplication. Schultz asked what those programs were — the details were not included in the report — and the auditors disclosed that they French language and art history.
“Clearly resources are not being allocated to where the growth needs are, and, in some cases, are being allocated to where we’re not being that efficient,” Schultz responded.
He said maybe one school could have those programs, but it was not something four should be offering. The data, he said, supports his priority next session to buoy high-performing degrees and shift funds away from low-performing areas.
Utah higher education Commissioner Geoff Landward said he agreed with Schultz and called it an “exceptional audit.” The two have been working to design a new framework for higher education funding moving forward that rewards valuable programs — in multiple ways, including salaries and high-profile jobs, he said, as well as less tangible benefits, such as career satisfaction.
“Our focus is squarely on providing value,” Landward said. “I’m excited about what that could do for the state of Utah and the investments the state of Utah can make.”
Operating like a ‘private business’
Sen. Angela Romero, D-Salt Lake City, questioned Tuesday whether focusing on job demand would short-change courses and fields of study that have harder-to-quantify impacts.
The classes she took when attending the University of Utah, she said, “may not be higher-performing” but did help her become a more well-rounded person.
“I have concerns that we might just be using data points and not getting the full picture,” Romero added.
Making money, too, isn’t always a person’s objective. Some people want to be teachers, she said, or, like her, work in politics, and it’s not high-paying.
“I don’t think institutions of government should operate like a private business,” she said. She also noted that some private nontraditional schools, such as Stevens-Henager College, have gone bankrupt and leave students trying to pick up the pieces.
Landward said he still wants there to be caveats. For instance, the Utah System of Higher Education recently commissioned a study that asked employers in the state what kind of skills they want to see in their employees. Many, he said, included writing, communication and leadership. So those aren’t being discounted in higher education coursework, he noted.
Overall, though, the auditors said there are ways to make higher education in Utah more accountable and responsive to state needs while saving money. They offered 11 recommendations.
Schools within the system, for instance, are currently competing for students and resources, and that’s not effective. There should be more coordination, and each institution should have a focused role in what they offer, so there’s less overlap.
“What I want to see from the system is partnerships, not cannibalism,” Landward added.
He said one school could provide language courses that could be offered statewide online, so there’s no duplication but all students could have access.
The commissioner has been tasked with compiling a list of duplicative programs, programs with low student outcomes and programs that don’t serve market needs. The hope is that the presidents of each institution will review those findings together and adjust. There will also be more regular audits, the commissioner said, of what schools are offering.
Landward added that the system is already working to gather program-level data, as recommended, for each university in order to make assessments. They hope to have a database ready by spring 2025.
USHE audit by Courtney on Scribd
