Colleges depend on the room and board charge

The argument

Running a college/university campus is an expensive operation. Many expenses go unrecognized, such as employing campus workers like safety officers, janitors, administrators, etc, and maintaining campus facilities.These are fixed expenses that mostly get paid for by student tuition and fees. If students don't return to campus, the universities will have to use their endowments – which is like a college's savings account – to pay these expenses. Colleges depend on a steady and predictable flow of money from students every year to run their operations. Out of state and international students are especially important because they pay more and will likely be the ones least likely to return. In addition, colleges make a lot of money from athletics and conferences held on the campus. The consequence of fewer students returning to campus is that the cost may have to be absorbed by the college itself, causing them to run into a deficit. Endowments supply scholarships and other financial assistance programs, and so if the college is faced with a more expensive operation there will be less money available to help students who are struggling financially. Another result of these financial issues is that many colleges are having to layoff professors in order to cut expenses. In addition, campuses that do reopen will face even higher running costs as they roll out expansive testing programs which aim to test students up to three times a week. Colleges have also had to renovate various campus spaces to comply with COVID safety guidelines, and are stocking up on expensive protective equipment. Altogether, running a campus is an expensive operation and without student room and board fees, colleges are going to struggle to stay financially afloat.

Premises

Counter-arguments

Colleges should not be opening for in-person classes in order to stabilise their balance sheets. An article by Mikhalevich and Powell from Inside Higher Ed writes that "we believe the intention to return to in-person instruction is motivated by a misreading of the scientific probabilities, as well as a flawed balancing of interests that improperly weights economic harms and optimal teaching environments over systematic health impacts on the university community." Experts warn that universities in areas with high rates of Covid-19 are making the conscious decision to place the institution's financial needs above the needs of their students.

Rejecting the premises

[Rejecting P1] The premise overstates how far room and board covers fixed costs. Housing and dining are largely separate auxiliary operations, frequently debt-financed and run close to break-even, so the revenue at stake is tied to its own expenses rather than paying for safety officers and academic staff. Tuition is charged whether instruction is in person or online, and that is the larger sum and not what reopening secures. [Rejecting P2] An endowment is not a savings account that can simply be spent. The majority of most endowments is restricted by donors to designated purposes and the annual draw is governed by spending policy. That constraint is a real problem, but it argues for changing the rules on restricted funds and for public support, not for a decision about occupying buildings during an outbreak. [Rejecting P3] This is where the weakness is plainest, and it is the objection on record: the premise makes an institution's balance sheet the reason for a decision whose costs fall on students, staff and the surrounding town. Reopening also did not reliably deliver the revenue — a number of institutions reopened, closed again within weeks after outbreaks, and issued refunds — so the financial case was insecure even on its own terms.