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Summary

Our Findings
Whether the impetus is to “revitalize” academic program offerings or respond to a financial crisis or sharp drop in enrollment, retrenchments are often bad news for faculty and staff.

In Sum

Enrollment declines over the past 10 years—particularly, with the significant downturn during the last two years—combined with changing labor force demands and changes of government funding leaves colleges looking to restructure their academic programs, service offerings, and delivery. This can result in discontinued programs or program changes, which lead to layoffs or, at best, reassigned faculty. As seen in the 17 colleges examined here, whether the impetus is to “revitalize” academic program offerings or respond to a financial exigency or sharp decline in enrollment, faculty positions can be threatened.

This descriptive exploration reveals enrollment declines in all 17 colleges examined, with some enrollment declines more severe than the average for the sector. Also, nearly all the studied colleges experienced declines in the number of full-time faculty, with the number of faculty being the lowest in the most recent year, 2021–2022. Overall, the community colleges examined herein saw a decrease in the number of faculty of about 17 percent over 10 years; of the 12 colleges with fewer faculty in 2021–2022 than in 2011–2012, the decrease was 21 percent or about 1 in 5.

Across all U.S. community colleges, the number of faculty declined 5 percent over the past 10 years. Although some community colleges experienced growth, 2 in 3 community colleges experienced faculty declines averaging 17 percent—a decline similar to that of these 17 institutions. However, it is unknown whether the balance of the colleges have experienced a retrenchment or restructuring event. About 3 in 10, 242 of the 810 community colleges, met or exceeded a 17 percent decline in faculty threshold. (See the Appendix for a listing of these colleges.)

Revenue streams across the 17 colleges vary, as does governmental funding, with some colleges appearing to be in a relatively good financial position even though they are experiencing or planning a retrenchment or restructuring. Although many of the colleges’ constant dollar appropriations declined over the past 10 years, about half experienced increases, and constant dollar appropriations per FTE student increased in all colleges, likely due to the enrollment decline. Notably, about half of the colleges examined operated at a deficit (negative revenues minus expenditures) for half or more of the years studied, which could leave an institution facing a fiscal crisis after some time.

A deeper examination of the 17 colleges included herein, along with a study of a sample of the 242 colleges that experienced large decreases in faculty, may reveal more detailed information regarding retrenchment and restructuring as well as their effects on faculty. Future study could include rigorous statistical modeling using IPEDS data, along with more detailed institution-level data to the extent available, to attempt to hone metrics that can identify when a community college faces financial distress and/or enrollment declines severe enough to warrant a retrenchment event. Also, developing a comparison group of colleges known not to have a retrenchment or restructuring event would benefit such an analysis. Note that the IPEDS data are fairly general and institutions’ budgets and financial data may provide more of the needed details.

Further, a survey of community colleges could be developed to identify institutions looking toward a retrenchment or restructuring event. The survey could be designed to yield more comprehensive results than relying on publicly released news or journal articles, which may not be available for all colleges facing such an event and could identify a potential comparison group of institutions without a retrenchment or restructuring event.

In the face of a restructuring event, faculty should be given the opportunity to work with administrators to discuss and plan for the changes. Being included in such discussions will provide faculty with potential opportunities to realign their expertise to new programs or a new academic structure and be reassigned in lieu of being laid off from a position in a closing academic program.

Note

NEA Research would like to thank ASA Research for preparing this brief.

The Data

Spotting the Warning Signs

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