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+--- Thread: TESU experiences an Operating Loss every year. (/Thread-TESU-experiences-an-Operating-Loss-every-year)
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TESU experiences an Operating Loss every year. - Prloko - 04-27-2016
I thought it was quite interesting to find that TESU operates at a huge operating loss every year. They are in the black every year overall, but it's not until the State of NJ kicks in a huge chunk. There seems to be some comments that seem to suggest that the school is being "greedy" with some of their changes over the past few years, but their financials tell a different story.
http://www.tesu.edu/about/documents/FY13-financial-statement-TESC-Lib-063013.pdf
Page 9 has the School's income statement.
The school had a $17 Million operating loss in 2013. The State of NJ kicked in $19M to make up the loss.
I guess I owe a thanks to the taxpayers of New Jersey for helping with my education.
TESU experiences an Operating Loss every year. - davewill - 04-27-2016
I would assume that's true of every public university. The difference between in-state and out-of-state tuition is supposed to keep the state from subsidizing the out-of-state students. I have no idea whether it does so entirely in TESUs case or not.
TESU experiences an Operating Loss every year. - Prloko - 04-27-2016
davewill Wrote:I would assume that's true of every public university.
I'm not sure of every university, but I'd wager that yes, the great majority do. At least I am assuming. It just baffles me to how many people don't realize how much education is already subsidized before we even factor in pell grants and such.
TESU experiences an Operating Loss every year. - AJ_Atlanta - 04-27-2016
This is covered in undergrad finance classes; minimizing tax burdens. Ben Franklin would be proud.
TESU experiences an Operating Loss every year. - edwardfurlong - 04-27-2016
You can operate at a loss and still be greedy, it could just mean they spend their money unwisely.
TESU experiences an Operating Loss every year. - dfrecore - 04-27-2016
davewill Wrote:I would assume that's true of every public university. The difference between in-state and out-of-state tuition is supposed to keep the state from subsidizing the out-of-state students. I have no idea whether it does so entirely in TESUs case or not.
CA operates all of their schools this way, which is why they have decided to make it difficult for in-state students (whose parents have been paying taxes to subsidize them for all these years) to get in, and accept more and more out-of-state and international students instead. They pay a very high tuition rate in comparison, so the schools chase that money as much as possible. Gotta love this state!
TESU experiences an Operating Loss every year. - Leedeedee - 04-28-2016
I don't understand why TESU don't put up the price of TECEPs. They're priced lower than the industry standard. If they charged $150 per TECEP they'd still be very competitively priced and perhaps make them a bit more money. Is this something best left unsaid?
TESU experiences an Operating Loss every year. - bjcheung77 - 04-28-2016
Leedeedee Wrote:I don't understand why TESU don't put up the price of TECEPs. They're priced lower than the industry standard. If they charged $150 per TECEP they'd still be very competitively priced and perhaps make them a bit more money. Is this something best left unsaid?
I agree, but that's what they're charging for non-matriculated students.
What Does it Cost to take a TECEP?
I think most schools actually are making a profit some way or another.
It's not in the record books, otherwise, they'll be closing left right and center.
TESU experiences an Operating Loss every year. - sanantone - 04-28-2016
I'll admit that I'm too lazy to read through the whole financial statement, but my guess is that they are not losing money on test-out students. They don't use up as many resources as students taking a lot of classes. They're not going to prevent these losses by increasing fees on test-out students who make up a minority of their student population. My guess is that they are losing money because their tuition is too low. It's much lower than nationwide averages for in-state and out-of-state rates, especially out-of-state rates. Their out of state rates are about the same as the average in-state rates at public, 4-year colleges.
TESU experiences an Operating Loss every year. - Old Guy - 04-29-2016
I'm sure they are expensive to run for the same reason most universities are expensive. Lots of professors with a 9 hour per week course load working half the year earning $100,000 per annum. Offices full of administration staff administering each other. An academic sense of entitlement that tells them they are important people that shouldn't be expected to scrimp. I'm sure I missed a lot.