2008 Woodie Awards
Recession could boost enrollment
Bethany Harbison
Issue date: 1/17/08 Section: News
For Jacksonville State University, 10,000 is the magic number
President William Meehan's goal of enrolling 10,000 students by 2010 is well documented, and the university says they have clear, step-by-step plans in place to transform this ambition into reality.
But as the economy's growth continues to slow, some economists say that Meehan's goal of 10,000 could receive an unexpected boost from an unexpected source — a recession.
A recession is defined as two negative gross domestic product (GDP) growths in two consecutive quarters, and symptoms normally include higher unemployment rates, decreasing prices of consumer goods and fewer jobs.
How can a recession, the less intense (but still formidable) cousin of a depression, benefit anyone, much less a university?
Dr. Christopher Westley, professor of economics, explained that as more people find themselves out of work, the decision to return to school often becomes more appealing. People realize that, in order to compete for a smaller number of jobs, they need more education and more training.
"Suddenly when a recession occurs, out of work people also have a lower opportunity cost of going to school," Westley said. "The decision to go to school costs them nothing in lost income."
Recent college graduates may also be more likely to return for more schooling sooner in a recession, according to economics professor Dr. Doris Bennett.
The most recent recession occurred from 2001 to 2002, and, according to data provided by the JSU Office of Institutional Research and Assessment, it may have played a role in the enrollment boost.
From 1999 to 2000, JSU's fall head count lost 46 students, falling from 8,048 to 8,002.
But in 2001, enrollment increased by 476 to 8,048. Then from 2001 to 2002, the head count shot up to 8,478, an increase of 452. By 2003, the spike ceased and enrollment only increased by 101, topping off at 9,031.
Myriad factors influence enrollment, but Dr. Bennett said there is a strong possibility that the last recession could have helped JSU's enrollment peak and that the recession that may lie ahead could have a similar effect.
"It would be good for us, but in general, recessions aren't good for everybody as a group," Bennett said.
Meehan said that though recessions may benefit university enrollment, they could also leave schools with less money and more students.
"Because much of the funding for K-12 and public colleges and universities comes from sales tax and income tax, it can also be a negative," Meehan said. "The education trust fund is very sensitive to economic downturns."
Meehan also explained that because the federal government is saying this recession will last only six months, any enrollment growth might be unsustainable. And no matter when or if this recession descends, Meehan said JSU would meet the goal of 10,000.
"I think we've made plans to reach our goal of 10,000 students without the aid of a recession," Meehan said. "We hope that, with those plans in place, we will be recession-proof or recession-neutral."
Could this recession shake up or speed up said plans?
"(A recession) really is a double-edged sword," Meehan said. "I think we'll just have to wait and see."
Graphic designed by Bethany Harbison
A devout Christian, Bethany Harbison is the news editor of The Chanticleer. She can be reached at (256) 782-8521 or at chantycopy@gmail.com. You can read her weekly blog on faith at bethanyharbison.blogspot.com.
President William Meehan's goal of enrolling 10,000 students by 2010 is well documented, and the university says they have clear, step-by-step plans in place to transform this ambition into reality.
But as the economy's growth continues to slow, some economists say that Meehan's goal of 10,000 could receive an unexpected boost from an unexpected source — a recession.
A recession is defined as two negative gross domestic product (GDP) growths in two consecutive quarters, and symptoms normally include higher unemployment rates, decreasing prices of consumer goods and fewer jobs.
How can a recession, the less intense (but still formidable) cousin of a depression, benefit anyone, much less a university?
Dr. Christopher Westley, professor of economics, explained that as more people find themselves out of work, the decision to return to school often becomes more appealing. People realize that, in order to compete for a smaller number of jobs, they need more education and more training.
"Suddenly when a recession occurs, out of work people also have a lower opportunity cost of going to school," Westley said. "The decision to go to school costs them nothing in lost income."
Recent college graduates may also be more likely to return for more schooling sooner in a recession, according to economics professor Dr. Doris Bennett.
The most recent recession occurred from 2001 to 2002, and, according to data provided by the JSU Office of Institutional Research and Assessment, it may have played a role in the enrollment boost.
From 1999 to 2000, JSU's fall head count lost 46 students, falling from 8,048 to 8,002.
But in 2001, enrollment increased by 476 to 8,048. Then from 2001 to 2002, the head count shot up to 8,478, an increase of 452. By 2003, the spike ceased and enrollment only increased by 101, topping off at 9,031.
Myriad factors influence enrollment, but Dr. Bennett said there is a strong possibility that the last recession could have helped JSU's enrollment peak and that the recession that may lie ahead could have a similar effect.
"It would be good for us, but in general, recessions aren't good for everybody as a group," Bennett said.
Meehan said that though recessions may benefit university enrollment, they could also leave schools with less money and more students.
"Because much of the funding for K-12 and public colleges and universities comes from sales tax and income tax, it can also be a negative," Meehan said. "The education trust fund is very sensitive to economic downturns."
Meehan also explained that because the federal government is saying this recession will last only six months, any enrollment growth might be unsustainable. And no matter when or if this recession descends, Meehan said JSU would meet the goal of 10,000.
"I think we've made plans to reach our goal of 10,000 students without the aid of a recession," Meehan said. "We hope that, with those plans in place, we will be recession-proof or recession-neutral."
Could this recession shake up or speed up said plans?
"(A recession) really is a double-edged sword," Meehan said. "I think we'll just have to wait and see."
Graphic designed by Bethany Harbison
A devout Christian, Bethany Harbison is the news editor of The Chanticleer. She can be reached at (256) 782-8521 or at chantycopy@gmail.com. You can read her weekly blog on faith at bethanyharbison.blogspot.com.
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