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Journal North: Home | Sports | Opinion | Obits | Entertainment
Tuesday, December 02, 2008
Takeover Priced at $6M
By Martin Salazar
Journal Staff Writer
State taxpayers could have to chip in nearly $6 million a year in operating costs if the College of Santa Fe is brought under the state's umbrella, according to an analysis by the state Higher Education Department.
The private college, which is struggling financially, is looking to the state for a possible takeover after talks with a for-profit company faltered. Highlands University in Las Vegas, N.M., is interested in bringing the college under its wing, and the University of New Mexico has also been mentioned as a possible suitor.
“These are figures we've worked out,” said Higher Education Secretary Reed Dasenbrock. “They all contain assumptions. But I think what we're trying to do is to basically see, based on these numbers, is there a decision to try to make this work?”
Dasenbrock's scenario assumes that the college's enrollment of 1,339 students will remain flat and that tuition at the college, which is now about $27,000 a year, would decrease significantly.
Dasenbrock's model sets in-state tuition at about $5,000 a year and out-of-state tuition at around $17,000.
The tuition rates are similar to what UNM charges, though Dasenbrock stressed that his department merely threw out the figures for the sake of creating a model to determine the feasibility of a state takeover.
The scenario assumes that annual operating costs for the college would be about $15.5 million, and that close to $10 million of that would come from tuition revenue.
Close to $6 million would come from the state funding formula, an enrollment-driven formula that determines how much colleges and universities get from the state each year.
If the college is taken over by one of the state's universities, that university would likely also have to assume the college's debt, which is reportedly between $25 million and $33 million.
Dasenbrock said debt service would likely cost another $2 million a year, but that cost would be borne by the university that partners with the college.
“Obviously, the governor, as far as I'm concerned, is the crucial decision-maker, but clearly the Legislature will need to buy into this because this would be in a sense part of the budget that they would be approving in the session. Obviously, this is not the best time to be trying to do something like this,” Dasenbrock said, referring to the state budget shortfall.
Dasenbrock said he thinks a state takeover of the college would be a prudent investment, noting that for the cost of UNM's new engineering building, the state can acquire a “fully functioning campus capable of educating many more students than are there now in the center of the state's capital.”
The college would continue offering its “unique offerings in the arts and film” and its partner institution could offer degrees at the site, Dasenbrock said.
He said other universities could also offer degree programs at the campus.
Dasenbrock briefed the Council of University Presidents Monday and has discussed the matter with the state's community colleges and Highlands University.
“For this to happen, the higher education community and the state is going to have to be convinced that this is in the best interest of higher education,” Dasenbrock said. “They're going to be crucial because this money could be spent in other ways, and therefore we need to make sure there is a consensus that this is in the collective interest of the state.”