Jan. 23

Can an Investor Buy a Community College?

In the changing environment of higher education, as geographic and other boundaries blur, state institutions have made the transition to private nonprofit ones (see New York’s Regents College becoming Excelsior College, for example). A small but growing number of private nonprofit colleges — many but not all of which were struggling financially — have been transformed into for-profit entities (see the purchase by Bridgepoint Education of what became Ashford University and the recent sale of Touro College’s thriving international arm to private equity firms).

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A private investor has offered to buy the online operations and students of Rio Salado College — a community college in Arizona where about half of the 60,000 students study only online — for at least $400 million, and officials at the Maricopa County Community College District, of which Rio Salado is a part, are considering the offer.

Under the terms of the letter of intent, which was transmitted to and discussed with Maricopa officials last week and obtained by Inside Higher Ed, an investment group would pay $5,000 per enrolled student (or $400 million, whichever is more) for the “assets used to operate” the college, presumably including its online learning system, curriculum and faculty. The proposal from Significant Partners and its founder and chairman, Michael Clifford — who has invested previously in the privatization of Grand Canyon University and now manages another education company that owns LA College — also offers to pay market price for the real estate and other physical assets used to carry out Rio Salado’s online operations.

“Rio should continue to be the shining star of Arizona’s education system. But it needs an injection of fresh capital not from the backs of the Arizona taxpayers, but from private industry,” Clifford said in an interview. He said that under his proposal, the 30,000 students who now take a few courses online with Rio but most of their classes at on-ground Maricopa campuses would revert to the community college district, and SignificantPartners would focus on aggressively promoting the newly for-profit Rio Salado outside Arizona and “competing on a global basis.” (The term sheet for the deal not address the question of tuition, but Clifford said in an interview that he would expect to keep tuition at roughly current rates for state residents but increase them 7 to 10 percent a year for online students from out of state.)

“My hope would be that the hundreds of millions we would put forth would be used by the [Maricopa] board to begin a much needed endowment to help scholarship Arizonans that need additional help or access to Rio’s degrees,” Clifford said.

Rio Salado’s president, Linda Thor, briefed faculty and staff members at the community college on the proposal Tuesday morning, and Rufus Glasper, chancellor of the Maricopa district, was scheduled to discuss the plan with members of the district’s board at a meeting last night.

In a message he sent to members of the board Tuesday, Glasper described the offer as “flattering” and “strong reinforcement of the good work we do.” Glasper was noncommittal about how he viewed the offer, saying that “the legality and ramifications of such a transaction have not been determined,” and that he was “informing you of this interest so that you understand the situation should it be brought forward for public discussion by the group wishing to purchase Rio Salado.”

“While we are obligated to perform due diligence and review any such offer, we remain committed to the important work we do; teaching and learning,” he added.

Thor, Rio’s president since 1990, said in an interview Tuesday that she too was “very, very flattered by this offer, particular the size,” and that she and her colleagues viewed it as “enormous validation” of the work they do. But the fact that no public college has ever been taken for-profit — several longtime observers of higher education said they were unaware of such a precedent — has left the district’s lawyers with “lots of questions” about the proposal, Thor said, including a fundamental one: “Is this something we can even consider?”

Michael Goldstein, a Washington lawyer who is widely seen as one of the deans of higher education law, laid out — without knowing details about the Rio Salado deal specifically — some of the legal and financial questions that would probably be raised by such a transaction. He said that in one way, the “sale” of a public college to a for-profit entity would be easier than the transition of a private nonprofit college into a for-profit one, because the Internal Revenue Service would not get involved to question whether the nonprofit “owner” of the institution is getting its full value from the buyer.

“States are sovereigns,” he said. “If a state decides it wants to sell a campus or a school for $1, it has the power to do so.”

But many hurdles would remain to such a deal, said Goldstein, of the Washington law firm Dow Lohnes. In addition to a community college’s board, the state attorney general would presumably have to sign off as well, and a change of ownership such as this would also have to pass muster with the institution’s accreditor, in this case the Higher Learning Commission of the North Central Association of Colleges and Schools.

Steven D. Crow, president of the Higher Learning Commission, said last week — also discussing the hypothetical possibility of the sale of a community college to a for-profit investor — said that “the big question was whether the college will remain accredited” after the sale.... We have processes to review [such potential changes in ownership], and the relevant parties will have to come to us at the appropriate time.”

Perhaps more than anything, though, a deal like the one Clifford is proposing may face as many perceptual hurdles as legal and financial ones. Many of the purchases of private nonprofit colleges by for-profit entities have engendered fears — some of which have come to pass, at least initially — that the institutions’ public missions will be replaced by a bottom-line orientation that may endanger the quality of education. And at some institutions, faculty leaders would be likely to scream bloody murder about the idea of a for-profit takeover, given the skepticism with which many traditional professors view the sector. (Some might also be troubled by a clause in the term sheet that says that “[b]uyer will select the faculty and staff it wishes to hire by closing.")

But Rio Salado has long had an unusual mission and a maverick spirit — college leaders boast of being a “college without walls” and of having collaborated with Microsoft and Dell to build their distinctive online learning system — and its faculty is structured unusually as well, with about 30 full-time professors working with an army of about 1,100 adjuncts.

It may not be surprising, then, that faculty leaders seem open to the idea, at least at first blush. “It’s fair to say that we were — how to say it?” “Stunned?” a reporter asked. “Stunned, yes, and very pleased, too,” Pat Case, faculty chair in the social sciences and Rio’s Faculty Senate president, said of faculty reaction after Tuesday’s briefing by Thor. She said there were lots of questions about what such an arrangement would mean personally for faculty members, regarding retirement and other benefits, but that “perhaps because of the way we’ve developed our culture ... we don’t have a closed mind to it.”

“Throughout the years,” Case added, “we have had a really superb relationship with the administration, and we have tremendous confidence in Linda. We feel very strongly that she and the chancellor always have and will continue to include us in the discussions, and we’ll have confidence in their work in whatever direction it goes.”

Thor said she was not certain where the purchase offer would eventually lead her institution, but she said it was certain to prompt discussions about “what is our future?” and “where else can we take this?” — perhaps to more public-private collaboration and cooperation, if not an outright purchase.

Clifford, who does not lack for confidence, preferred to put his offer in a larger context. “We are helping to lead the largest deregulation of an industry in American history: Education is a $750 billion industry that is now catching the focus of Wall Street. This is only the beginning of offers to nonprofit institutions to join forces with the enormous amount of investment capital available for online education.”

— Doug Lederman

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Comments

Entrepreneurial Imperative

As state funding of community colleges has plummeted within a rightward-tilting culture of higher education as “personal choice", thus requiring less support from the state, community colleges particularly have had to rely on business models for survival and growth.

Unlike four year universities, which are often funded at higher levels, command tuition as much as 10 times or more that of community colleges, and rake in federal grants with 50% margins for administrative support (indirect costs), community colleges have an open access mandate that deliberately deflates tuition costs.

They must make revenue any way they can: having a 95:5 ratio of adjuncts to tenured faculty; pleading with the local tax base for tax increases; and developing cozy relationships with local business. There is no surprise here, and many more community colleges are taking Rio Salada’s market success with their streamlined online approach to heart. This offer will only accelerate the trend.

Community colleges are businesses, much more so than most four year colleges.

Phil, at 8:35 am EST on January 23, 2008

Welcome to W-M University

Interesting proposition: converting universities to profit centers. It just might be as successful as Wal-Mart. I wonder if traditional faculty would be replaced with cheap, off shore substitutes. For that matter, why doesn’t Wal-Mart jump right in. They certainly have the organizational skills and off shore connections. I wonder how much a PhD in molecular biology would cost? I want one.

Anxiously Waiting

Justa Professor, at 9:30 am EST on January 23, 2008

As a former faculty member at one of the other Maricopa Community Colleges and former chair of Faculty Professional Growth in the district, I’m concerned about the potential implications of this sale for the faculty members and students at Rio. The Maricopa system has a long, rich history of providing unique professional development opportunities and support to its faculty, unlike any other community college district I’ve seen. I can’t imagine that such research and learning opportunities would continue in the private sector—they don’t return an immediate profit even though they are essential for promoting the engaged learning opportunities that Maricopa is known for.

Susan Miller-Cochran, at 9:55 am EST on January 23, 2008

No way

Bad idea. Tuition will go up, radical policy changes will have to happen, management will switch....too disruptive for students, faculty and any pawns in the admin structure.

Why not ask what’s-his-name to donate some scholarship money instead? Or is he looking for a killing and not just a tax write-off?

kgotthardt, at 10:50 am EST on January 23, 2008

Rediculously stupid!

There goes the job security. Money talks and employees will walk. Look at Grand Canyon University. Look at University of Phoenix. Failures. This guy wants to walk in and purchase a public entity. Tell him to hit the bricks, go purchase someone else. The bad thing is that the college values will go down hill, job security will be gone and in the state of the economy, everyone will lose jobs.

So go ahead, consider this offer, let this guy buy you... and you’ll lose your bottom line... the students and employees that make your organization truly superior.

Joe Blow Tax Payer, at 12:10 pm EST on January 23, 2008

Students first

I am impressed with the administration and faculty leadership, who seem to be seriously evaluating this proposal. Any proposal that provides more access, more grants, and innovative services for students should be looked at carefully. Change can be scary but rewarding as well. Perhaps Rio can invest the funds in increasing access for the ground campus. Additionally, this could develop into a technology and curriculum sharing relationship where Rio Ground let’s call it receives access for Arizona students to courses developed by Rio Online as it markets across the country and world. This is an innovative proposal that really could be great for students if done well. I applaud the leadership for taking bold steps to focus on the student who is the future of this country.

Matt, at 12:30 pm EST on January 23, 2008

done that

I was a faculty member at Grand Canyon U. when Clifford’s group bought it:

We lost our eligibililty to participate in TIAA-CREF retirement plans (open to non-profits only) & were forced to switch to a 401k with 3x the fees.

We lost our employer matching contribution to our retirment plans- effectively a pay cut.

Tenured faculty were “downsized” and this was justified on the basis of expenses and program changes. I’ll bet you can guess what I think the real reasons were.

Control of academics shifted from the faculty to the administration — programs that had higher overhead were eliminated while programs that generated net revenue were enhanced. (Who ever heard of a Christian liberal arts college without a music program? GCU!) There was even talk about putting the pre-med curriculm online until they figured out that the Medical schools wouldn’t accept students from such a program.

About half the regular faculty left in disgust at the end of Spring 2005-hardly an endorsement of the idea.

GCU. is all about putting $ in the investors pockets. Education is just a product they package and sell.

Been There, at 12:45 pm EST on January 23, 2008

LET THE MARKET DECIDE

I am not here to weigh in on the merits of this proposed sale. However, in my unique position of helping non-profit and for-profit colleges acheive their enrollment goals, I notice little difference in the care and concern for students based on an institution’s profit status.

From my perspective, as more and more colleges compete for students, there appears to be more application fee waivers and tuition discounts. I am sure a few of our elitist friends can decry this as the begining of the end. However, I beleive that more choice for educational consumers is already having a positive impact on the number of choices a student has when determining which college best fits his/her needs. The next battle for students will be fought in the pricing arena. This will lead to schools realizing that the only way to compete and survive will be to deliver a better quality degree program and student experience than their competitors. Ultimately, students will have more choices, better tuition rates, and better academic and student services. The best and the brightest faculty members will become the greatest asset a college or university posesses.

Let’s turn the focus away from sources of funds and focus on what is best for our students.

Bob Barker, President at Barker Educational Services Team, at 1:00 pm EST on January 23, 2008

“no way"?

kgotthardt said: “Bad idea. Tuition will go up, radical policy changes will have to happen, management will switch....too disruptive for students, faculty and any pawns in the admin structure.”

And how, exactly, is that different from traditional higher ed institutions?

anon, at 1:00 pm EST on January 23, 2008

Real Opportunity

I think this relationship has real potential. The track record of this group is very good (see Grand Canyon U or LA College). I do not get the fear of investments. The margin of profit at even the most profitable for-profit higher education institution is under 25%, much less than many public schools waste on athletics, poor administration and programs for which there is little demand. The only way to make a sustainable long-term profit in education is to offer quality educational programs which this group has proven they will do.

Dr. David Harpool, Provost at Ellis College, at 1:45 pm EST on January 23, 2008

Anon, change must happen in order to grow. But radical change imposed on large groups of people always has disruptive and too often, negative effects. I’ve worked in environments like these—mom and pop good-guys get bought out to spin profit, and the whole place goes to hell.

Invest more in Community Colleges...not from lower and middle class tax payers, not from students, but from our existing budgets and from those who have succeeded enough financially to contribute to those of us who have not.

kgotthardt, at 2:10 pm EST on January 23, 2008

Privatization of Community College

As an attorney handling transactions involving the sale and purchase of for profit postsecondary insitutions, I cannot say that I have ever heard of the idea of a state or county selling a public college to a for-profit investor. But, if it helps the state or county better accomplish its mission of providing vocationally relevant education, delivered through online and brick and mortar options that are accommodating to the needs and interests of both younger students and working adult students juggling job and family responsibilities, then why shouldn’t a state or county government embrace a for profit company? For many years, privatization, and various forms of public-private ventures, have been welcomed by and have benefited government in various critical areas of service, including operation of airports, ports, utilities, transportation, parks, hospitals and prison systems. While such ventures have not been entirely free of difficulties, overall these ventures have improved delivery of services to the public where proven and capable private sector entities have been selected and transaction terms have included operational benchmarks and protections designed to assure continuing delivery of quality services to the public.

When the private sector company proposing the privatization of a community college like Rio Salada College is Significant Partners, an enterprise with access to necessary capital and, most importantly, a management team with extensive experience in transforming once struggling nonprofit institutions into successful for-profit institutions delivering top quality education to diverse and expanding student populations, then the risk to Maricopa County in selling Rio Salada College to a Significant Partners affiliate is fairly low while the benefit is substantial. And the establishment of a well endowed foundation that will be able to award scholarships to needy students is the crowning touch to this proposal, given our well documented national struggle with rising college tuition and shrinking public and private financial assistance funds. This venture has the right components to be a true win-win situation for Maricopa County, Significant Partners and, most importantly, the many Maricopa County residents that need postsecondary education but struggle to meet the rising costs of tuition. If the County and Significant Partners can gain all necessary approvals to make this deal a reality, it may not only yield benefits in Maricopa County, but also become the bellwether of a new higher education trend that benefits governments and students throughout the nation. Ron Holt, Brown & Dunn, Kansas City, Missouri

Ron Holt, Partner at Brown & Dunn Law Firm, at 3:15 pm EST on January 23, 2008

Been There, Left That

After teaching for Rio for several years, I left because of their evolution toward becoming the edu-business that they are. Students were (and probably still are) referred to as “customers.” Perfect mindset if you are WalMart, not so good if you’re a school. MCCCD can sell the college infrastructure but they CAN’T sell the students. They registered for a public institution. Of course, I suppose you can’t sell students but you can sell “customers.”

I. Leftem, Faculty, at 3:35 pm EST on January 23, 2008

What?

When you start calling them “educational consumers” it’s time to go back to The Price is Right.

Education and business should not be confused. How do we identify “the best and brightest faculty?” Are they the ones best at keeping down costs and not necessarily those delivering the best results (which are often costly)? Are they the ones who eschew quality standards to get the best “customer service feedback"?

Jeff, at 4:30 pm EST on January 23, 2008

Possible Negative Impacts

It seems a bit silly for the Maricopa County Community College (MCCCD) District to sell off one of their highest revenue generators. Rio Salado is second in FTSE only to Mesa Community College. Rio’s FTSE has been steadily increasing since its inception.

MCCCD relays in their statement of values that “we value lifelong learning opportunities that resond to the needs of our communities and are accessible, affordable, and the highest quality". How will increased tution, especially for those out of state contribute to student access and affordability? Yes, perhaps revenue generated from Rio’s sale could be used for scholarships, but student’s will definately need assistance to pay the higher tuition rates.

What economic advantages would MCCCD receive for selling Rio? If MCCCD needs more money, they pass bonds, which historically local communites have supported. The extra few dollars paid through property taxes are often paid through tax payer’s mortgages anyways.

From an investors standpoint: Why wouldn’t investors just copy Rio or create a partnership with Rio to supply their own college entity with an eLearning system, support staff, and curriculum. The rest is just marketing.

What about Rio’s employees? Many of those employees who have made Rio successfull will likely lose their jobs, similar to Grand Canyon’s buyout. Manager’s will likely be the first to go. Time to update those resumes!

The most concerning this is that since the decomission of the board of education in AZ, the MCCCD governing board’s 5 members have the power to sell Rio...pending any legalities of course. It will be interesting to see how this offer turns out.

Concerned Citizen, at 4:30 pm EST on January 23, 2008

work for a for-profit that has ALWAYS been a for-profit. One of the reasons it “works” is that there’s no question about industry or status. Enrolled students know where they are enrolling. What will happen to students who thought they were enrolling in a community college and suddenly, it changes? Doesn’t that nullify their contracts?

To me, if you start out in a particular status, you should stay there and build upon that, not try to change identities which confuses everything from the ground up.

Partnering with a private company? Maybe, depending on the kind of arrangement. Buying a community college? That’s just not fair to the students....especially ones who will be forced to pay tuition hikes while others will not.

kgotthardt, at 4:30 pm EST on January 23, 2008

The Students are Customers!

Leftem,Students are customers. What’s the definition of a customer? A person who purchases goods or services from another; buyer; patron. Is this not true of any student? The college services the students by offering them education, in the form of credits if they pass. Which then turns into degrees. To think otherwise is not only ignorant, but inaccurate. While they may be called “customers” they are also still students. The word is interchangeable in this facet. However, they are treated with the same respect as any internal employee and that’s what matters. Your views seemed to be a bit skewed, perhaps that is why you no longer work for RSC.

Customer Support, Customer/Student/Person, at 10:15 pm EST on January 23, 2008

Higher Education and the Free Market

The idea of private investors buying a community college is brilliant. Here is why:

1. There is not as much difference between “publics” and “privates” as people think, and the differences that do exist are healthy and keep things competitive. (If this interests you, read below.*)

2. Because the differences are minimal and healthy, the fear registered in this forum and elsewhere is largely unnecessary.

3. To the extent there are differences, the fear coming from those who dread business practices may be justified. These practices often require them to justify the existence of themselves and/or their programs in a cost benefit analysis largely foreign to traditional academia. A good thing.

4. That fear actually should cause happiness to taxpayers and others who foot the bill at the publics and want people and programs justified before they pay for them. That is because, to the extent privates put the pressure on publics, business practices can — and will increasingly — exist at both. Another good thing.

5. The students have far less to fear than they might think, and even something to rejoice about: More choices give them more power. They should choose the best education they can afford, and look to the market beforehand to see what that degree will be worth. The free market is their friend by holding quality up, and prices down, in cars, technological gadgets, etc.; why not with education? “If you don’t like it, don’t buy it” will do more for them and society, than all the regulation or other attempts at paternalistic protection. Yet another good thing.

6. Sum: To the extent there are differences between the publics and privates, they benefit the taxpayer and the student. The former is slightly spared and the latter has more choice. The differences might worry the tenured professor or anyone living in a culture that fears change, but that change is coming to them at State U and not just with the increasing and inevitable buyouts. Education is a business, and students are customers, whether we like it or not. 7. Personal aside: I know the privates are not perfect. I have been an attorney for private NFPs (more like a public) and private FPs. But, also, I have been a professor for over a decade, and I mourn the continued “dummying-down” of America’s educational system, its students, and, thus, its citizens — a problem for privates, publics and all of us. As a freedom-lover, I hope for market-based solutions to this downward spiral. What have we got to lose, but a status quo that is acceptable to no one? If there are many choices, and consumers only support academically weak ones as is feared, what basis do we have for believing Americans value good education anyway? If consumers are willing to pick and pay for good education, then what have we to fear? Finally, how do opponents of change think they will keep the status quo — through forcing the taxpayers to carry people and programs that no one wants to pay for voluntarily? These are questions we must face honestly, and this brave venture by Michel Clifford and others like him makes us take a good hard look at the “industry” and ourselves. Brilliant.

Not to sound too corny, but America was built on competition and grand experiments. Change is not new to us. This one sounds like a Grand Experiment in a fine tradition.

Linda Rawles, J.D.TheRawlesReport

*More per #1:

As a unabashed free market advocate and a higher education lawyer/consultant, maybe I can counter at least one false presumption common in the post-secondary world, one that is driving most of the opposition in this forum and elsewhere: There is a clear line between public and private higher education institutions. This is not so. As a society, we are still trying to decide if private higher education institutions should be public or private, or, if a hybrid, where we will draw the lines in how we regulate and treat them. It is, really, similar to the debate about K-12 vouchers, except that we have already answered the first question for universities that we still have not answered regarding K-12: Should government (that is, taxpayers) subsidize private educational options for those who cannot afford them? With the Title IV student loan system more firmly entrenched than the bankrupt Social Security system, that debate is lost and the answer, the choice, has been yes. And so, Option One, at least for now, is gone: Government gives no money to students to spend at private institutions and thus the line between public and private is very clear. That leaves two other options. Option Two: Government, through the student loan program, subsidizes public and private universities, but, because the money goes to the student and not directly to the school, we keep regulations minimal, maintain a fairly clear line between public and private, and, among other benefits, keep some healthy competitive pressure on the publics to deliver. Option Three: Government subsidizes as in Two, but we regulate to a great degree, and so blur the line between public and private until it is almost non-existent, and, among other detriments, eliminate any meaningful pressure on the publics to avoid complacency.I prefer Option Two. I want to keep the privates as private as possible, and keep the level of competition for students and taxpayer-provided Title IV dollars high.

Linda Rawles, J.D., Higher Education Lawyer and Consultant at TheRawlesReport, LLC, at 2:10 am EST on January 24, 2008

According to the Chancellor, “No Deal.”

From: Rufus Glasper [mailto:r.glasper@domail.maricopa.edu] Sent: Wed 1/23/2008 6:50 PM To: DL-MARICOPA-BUSINESSSubject: Is Rio Salado for sale

Dear Maricopa,

Everything we do at Maricopa must advance our critical objectives – student success, public stewardship and “one Maricopa.”

News stories in the past 24-hours, about the potential sale of Rio Salado College have raised many questions and I’d like to address some of them.

Our primary mission is teaching and learning. I want to reiterate that nothing will ever impede our work in providing educational access and opportunity – a true public education to the people of Maricopa County. We take very seriously our promise to students and their families to provide quality teaching and learning at a reasonable cost.

Just before the holiday weekend, I received a letter from a group of investors led by Michael Clifford. This letter of intent, offered at Mr. Clifford’s own initiative, outlined a proposal to purchase Rio Salado College.

The letter did not demand an immediate response – and, in fact, requested confidentiality. Mr. Clifford independently decided to announce his offer to the press on January 22, which unfortunately prompted local and national news stories.

Given the publicity that this situation has gained, I feel the need to set the record straight; Rio Salado College is not for sale.

While I have encouraged our colleges to pursue new options for revenue streams, Dr. Thor and I would never do so at the expense of our students and/or staff. Upon review, we find that the offer that has been brought forward does not align with our goals. However, we remain open to public and private partnerships that are consistent with those goals.

It is unfortunate that this matter has developed in this manner before we had the opportunity to communicate our response to Mr. Clifford.

We remain committed to our guiding principles and to helping our students succeed, using the public resources entrusted to us efficiently and effectively, and working together as “one Maricopa.”

Respectfully,

Rufus GlasperChancellor

Interesting, at 8:10 am EST on January 24, 2008

Another view

Issues such at this deeply challenge our Nation’s most conservative institutional framework. Although we like to think of ourselves as progressive, we innovate much more slowly than banking, the industry often seen as the most conservative.

In terms of Rio Salado’s mission, it is possible to structure such sale with benefit to all stakeholders. That said, an offer of $400 M is as laughable as the arithmetic upon which it is based. Given the context, the offer seems like a bid for attention by person with a reputation for immaturity. John Sperling would never have played such childish politics as has Michael Clifford. Éclat counts.

In doing the good job that it has, Rio has created considerable value that has not been leveraged. One could argue that a fiduciary responsibility of Rio’s Board is to exploit this potential for leverage. On the downside, the fears expressed by faculty and others are largely groundless and seem based on higher education’s ubiquitous lack of vision into common ways to structure incentives, disincentives, and protections while getting things done.

Based on reasonable interpolations of previous sales (admittedly difficult as “comps” are so dissimilar), the asking price would be $1.2B to $1.6B and there would be a partnership with residuals. Net, the County’s taxpayers, students, and employees could benefit from increased revenue, decreased supporting taxes, more efficient education, and more jobs all around.

Instead of retreating to the comfort of its rigid administrative structure and the cocoon it provides its would-be Mandarins, this time reinforced by a ridiculous public offer, I suggest that Rio open the dialog with many investors. I can envision a variety of partnership structures that would benefit everyone.

The choice is Rio’s but the taxpayers should weigh in on the issue. Will Rio build upon this accidental public spotlight to begin an investigation of further ways to leverage its assets. . . or retreat? As good Rio is, it operates at perhaps 55% of possible efficiency. The right partnerships could increase that number to 75% or higher.

Robert Tucker, President at InterEd, Inc., at 11:50 am EST on January 24, 2008

Response to “Justa Professor” and others

“Justa Professor” comment was:"Interesting proposition: converting universities to profit centers. It just might be as successful as Wal-Mart. I wonder if traditional faculty would be replaced with cheap, off shore substitutes. “

As a recruiter who specializes in the for-profit sector my answer to your question is this:

CEO’s and Presidents of for-profit education groups/schools run their schools much like a business. A business that responds to the needs and wants of their customers. Their customer is the student so all of their resources, time, and talent are dedicated to serving them.

That means small class sizes, flexible schedules, state of the art equipment, and professors who are dedicated to enabling their students to pursue a better life.

What it doesn’t mean is educators who care more about how many days they have off and how many pointless meeting they can attend in a week.

So no, they won’t go offshore for dedicated, hard working professors who care; but they will call me up and say Vin: we want to pay a premium to provide our students with access to the best possible adminstrators and professors; can you find us some people like that.

Vin Scaramuzzo, Executive Recruiter, at 2:10 pm EST on January 24, 2008

Thanks!

Dear Bloggers,

Thanks so much for taking the time to comment on my proposal. I never thought it would generate such a lively discussion.

If nothing else, maybe this offer has stimulated a healthy discussion about the future of education.

Also, I must say I am amused at some of the inaccuracies, especially the one regarding the value of Rio from an economic perspective in relation to my offer.

That said, I commend all the leadership at Rio, especially the Board, for taking the time to evaluate this is one possible option to allow the tax-payers of Arizona some relief while creating an environment of increased resources for students and for faculty (including increased compensation and more opportunities for new up and coming faculty).

As a friend noted, if someone doesn’t want to sell their house that is solely their decision. This is what makes our country great. I do think there is great merit in exploring various public-private partnerships in the future for Rio. The leadership of Rio should be proud at the value they have created. And I think Adam Smith would love this discussion!

Again, thanks all for taking the time to help keep this fire burning — I don’t think it is over based on the many calls I am getting.

Michael K. Clifford, at 5:40 pm EST on January 24, 2008

Been on Both Side

This is from someone who has worked on both sides of the fence. I have worked for a community college and two for-profit colleges. From my perspective, the bottom line at the for-profit institutions is not the students, not the faculty and certainly not the employees. The bottom line is and always will be the shareholders. I applaud Dr. Thor and Chancellor Gasper for maintaining the integrity of Rio Salado College.

Been on Both Sides, at 12:15 pm EST on January 25, 2008

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Northeastern University, founded in 1898 and located in Boston, is a private research university that is a leader in ... see job

Risk Management Specialist
Charles Drew University of Medicine and Science

A private non-profit educational institution in the Watts-Willowbrook area of South Los Angeles, Charles Drew University of ... see job

Senior Accountant — S.O.U.P. Administrative Center
University of Minnesota, Twin Cities

The University of Minnesota is a premier employer and a talent magnet attracting leading faculty and staff from around the ... see job

Partnerships & Grants Coordinator
Plymouth State University

Plymouth State University (PSU) invites applications for the position of Partnerships & Grants Coordinator in the Center for ... see job

Strategic Budget & Finance/Controller
University of Idaho

Strategic Financial Planning Coordinator Strategic Budget & Finance/Controller Open for Recruitment: August 21, 2008 — ... see job

Vice President for Business and Financial Affairs
Southwestern College

Southwestern Community College District invites applications for the position of Vice President for Business and Financial ... see job

Financial Resources Manager
Anne Arundel Community College

The Financial Resources Manager is responsible for providing assistance to the Budget Director by monitoring the status of ... see job