WEBVTT
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Imagine uh telling your boss you need to lay off 45 people, but then in the exact same breath you ask for a raise for everyone else.
00:00:07.599 --> 00:00:07.839
Right.
00:00:07.919 --> 00:00:09.279
I mean it sounds totally crazy.
00:00:09.599 --> 00:00:10.560
It really does.
00:00:10.880 --> 00:00:14.640
But um that is exactly what is happening right now at Kent State University.
00:00:14.880 --> 00:00:24.160
We are looking at why a major public university is slashing jobs and you know, what this reveals about the shifting landscape of higher ed that could directly impact you.
00:00:24.239 --> 00:00:24.640
Aaron Powell Yeah.
00:00:24.719 --> 00:00:29.199
So Kent State is really staring down the barrel of its fiscal year 2027 budget right now.
00:00:29.440 --> 00:00:38.479
Management just handed down this massive mandate to all the vice presidents, basically saying, hey, find a way to trim five to ten percent from your departments like immediately.
00:00:38.560 --> 00:00:42.880
Aaron Powell And the immediate casualty there is up to 45 potential job cuts in the coming weeks.
00:00:43.119 --> 00:00:47.679
But um here is the contradiction that just stopped me in my tracks when looking at this.
00:00:47.920 --> 00:00:54.320
They are planning these layoffs, but simultaneously handing out a 2% raise to non-union employees.
00:00:54.560 --> 00:00:56.079
I mean, how does that math work?
00:00:56.159 --> 00:00:58.640
Aaron Powell I know it sounds completely backwards, right?
00:00:58.799 --> 00:01:04.239
Handing out raises during a severe budget crisis, but it is actually a defensive maneuver.
00:01:04.400 --> 00:01:07.840
Higher education is, well, it's bleeding specialized talent right now.
00:01:08.159 --> 00:01:09.760
Oh, so people are just leaving the industry.
00:01:10.319 --> 00:01:10.640
Exactly.
00:01:11.040 --> 00:01:19.920
If they do not give that 2% bump, their key staff walk, and replacing them in this highly volatile market would cost them triple.
00:01:20.159 --> 00:01:22.640
It is basically spending pennies to save dollars.
00:01:22.719 --> 00:01:23.920
Aaron Powell Okay, I get that.
00:01:24.239 --> 00:01:31.519
But if it is cheaper to give raises than to hire new people, that kind of implies their base operating costs are just fundamentally broken.
00:01:31.760 --> 00:01:34.079
What is actually driving them into the red like this?
00:01:34.239 --> 00:01:38.480
Aaron Powell Well, the overhead is skyrocketing, but the customer base is literally shrinking.
00:01:38.560 --> 00:01:41.680
It is driven by this perfect storm of demographics and policy.
00:01:41.760 --> 00:01:42.239
Aaron Powell Right.
00:01:42.319 --> 00:01:45.920
It feels like trying to run a massive shopping mall built for 1990s foot traffic, right?
00:01:46.079 --> 00:01:46.400
Uh-huh.
00:01:46.640 --> 00:01:50.319
But your actual shoppers have moved online and your electric bill just tripled.
00:01:50.480 --> 00:01:54.560
You cannot just turn off the lights in half the mall without ruining the experience for everyone.
00:01:54.640 --> 00:02:01.040
Aaron Powell And if you think back to the 2008 financial crash, people uh people stopped having kids during that recession.
00:02:01.200 --> 00:02:02.159
Aaron Powell Oh, wow, right.
00:02:02.319 --> 00:02:03.120
The Great Recession.
00:02:03.439 --> 00:02:03.680
Yeah.
00:02:04.239 --> 00:02:10.080
Fast forward 18 years, and we are hitting what economists actually call the demographic cliff.
00:02:10.319 --> 00:02:13.919
There are just simply fewer 18-year-olds entering college today.
00:02:14.240 --> 00:02:19.439
Add to that a drop in international students directly tied to recent federal visa changes.
00:02:19.599 --> 00:02:24.080
Aaron Powell So colleges across the Midwest are suddenly fighting over a much smaller pool of students then.
00:02:24.159 --> 00:02:25.039
Aaron Ross Powell Exactly.
00:02:25.280 --> 00:02:32.960
And if you are listening to this and wondering why your tuition keeps going up while the university is making cuts, well, inflation is the final piece of the puzzle here.
00:02:33.120 --> 00:02:38.879
The university president, Todd Diacon, pointed out that state support has not kept up with rising operational costs.
00:02:38.960 --> 00:02:41.919
Aaron Powell Let me guess, it has actually gone down in real dollars.
00:02:42.000 --> 00:02:42.719
Aaron Powell Big time.
00:02:43.039 --> 00:02:49.840
When you adjust for inflation, state funding for Ohio public universities is roughly 27% lower today than it was in 2005.
00:02:50.240 --> 00:02:50.960
Wait, 27%?
00:02:51.360 --> 00:02:52.240
That is huge.
00:02:52.639 --> 00:02:53.439
It is massive.
00:02:53.520 --> 00:02:55.680
And Kent State isn't alone in this.
00:02:55.919 --> 00:03:01.360
We are seeing identical panic and cost cutting at Penn State, Maryland, Clemson, East Carolina.
00:03:01.439 --> 00:03:02.800
I mean, it is a national crisis.
00:03:02.879 --> 00:03:03.039
Aaron Powell, Jr.
00:03:03.120 --> 00:03:04.080
But how do you even survive that?
00:03:04.240 --> 00:03:08.479
Kent State isn't just taking a lawnmower to the budget and cutting everything evenly, right?
00:03:08.639 --> 00:03:10.319
They are protecting certain things.
00:03:10.400 --> 00:03:13.599
Aaron Powell Yes, they are doubling down on what actually works.
00:03:13.840 --> 00:03:21.360
Departments that show strong enrollment growth, like uh the College of Aeronautics and Engineering in their fashion program, those are being protected.
00:03:21.439 --> 00:03:22.560
Aaron Powell Aeronautics, really.
00:03:22.639 --> 00:03:22.800
Trevor Burrus, Jr.
00:03:22.879 --> 00:03:22.960
Yeah.
00:03:23.120 --> 00:03:29.919
Diacon actually credited the aeronautics program as a primary reason they aren't in worse financial shape compared to their peers.
00:03:30.000 --> 00:03:36.719
Aaron Ross Powell Okay, but if the strategy is ruthless efficiency and protecting high-growth areas, what about all the regional campuses?
00:03:36.960 --> 00:03:43.759
Maintaining multiple physical locations in places like Salem and Tuscarawas, that requires massive overhead.
00:03:43.840 --> 00:03:44.639
Aaron Ross Powell It really does.
00:03:44.719 --> 00:03:50.000
Aaron Ross Powell So from a pure business standpoint, why not just close those down if you are$18 million in the whole?
00:03:50.080 --> 00:03:54.240
Aaron Ross Powell Well, that exact question is sparking a huge political debate right now.
00:03:54.479 --> 00:04:02.319
You had Vivek Ramaswamy recently arguing that universities need to slash administrative overhead and consolidate these operations.
00:04:02.400 --> 00:04:04.479
Aaron Powell Basically run it like a lean corporation.
00:04:04.560 --> 00:04:05.280
Aaron Powell Exactly.
00:04:05.680 --> 00:04:08.000
But President Daikon pushed back on that.
00:04:08.159 --> 00:04:13.280
He didn't name Ramaswamy directly, but he publicly defended those regional campuses.
00:04:13.360 --> 00:04:14.000
Aaron Powell Interesting.
00:04:14.080 --> 00:04:14.879
What was his argument?
00:04:15.280 --> 00:04:19.600
His argument is that these aren't just satellite offices, they are vital lifelines.
00:04:19.759 --> 00:04:25.199
They provide regional access to education for smaller Ohio communities that drives the local economy.
00:04:25.279 --> 00:04:25.920
Aaron Powell Oh, I see.
00:04:26.079 --> 00:04:28.800
So if you shut them down, you aren't just saving money.
00:04:28.959 --> 00:04:32.879
You are effectively cutting off economic mobility for entire regions.
00:04:32.959 --> 00:04:33.120
Trevor Burrus, Jr.
00:04:33.279 --> 00:04:33.360
Right.
00:04:33.519 --> 00:04:40.800
The Board of Trustees still has to approve the final budget, and in the coming weeks, those forty-five people will find out who is actually losing their jobs.
00:04:40.879 --> 00:04:45.199
Aaron Powell This$18 million shortfall isn't just an administrative headache, you know?
00:04:45.759 --> 00:04:55.759
It matters because it directly dictates the future of tuition rates, the academic offerings available to you, and the health of the local economies that rely on these universities to survive.
00:04:56.079 --> 00:04:57.839
It is a massive ripple effect.
00:04:57.920 --> 00:05:00.480
Aaron Powell Which leaves us with a pretty massive question to think about.
00:05:01.040 --> 00:05:12.319
As demographic shifts accelerate, the student pool shrinks, and state funding remains effectively flat, will the traditional model of a sprawling, accessible public university system survive the decade?
00:05:12.480 --> 00:05:14.079
Or are we watching the end of an era?
00:00:00.239 --> 00:00:07.280
Imagine uh telling your boss you need to lay off 45 people, but then in the exact same breath you ask for a raise for everyone else.
00:00:07.599 --> 00:00:07.839
Right.
00:00:07.919 --> 00:00:09.279
I mean it sounds totally crazy.
00:00:09.599 --> 00:00:10.560
It really does.
00:00:10.880 --> 00:00:14.640
But um that is exactly what is happening right now at Kent State University.
00:00:14.880 --> 00:00:24.160
We are looking at why a major public university is slashing jobs and you know, what this reveals about the shifting landscape of higher ed that could directly impact you.
00:00:24.239 --> 00:00:24.640
Aaron Powell Yeah.
00:00:24.719 --> 00:00:29.199
So Kent State is really staring down the barrel of its fiscal year 2027 budget right now.
00:00:29.440 --> 00:00:38.479
Management just handed down this massive mandate to all the vice presidents, basically saying, hey, find a way to trim five to ten percent from your departments like immediately.
00:00:38.560 --> 00:00:42.880
Aaron Powell And the immediate casualty there is up to 45 potential job cuts in the coming weeks.
00:00:43.119 --> 00:00:47.679
But um here is the contradiction that just stopped me in my tracks when looking at this.
00:00:47.920 --> 00:00:54.320
They are planning these layoffs, but simultaneously handing out a 2% raise to non-union employees.
00:00:54.560 --> 00:00:56.079
I mean, how does that math work?
00:00:56.159 --> 00:00:58.640
Aaron Powell I know it sounds completely backwards, right?
00:00:58.799 --> 00:01:04.239
Handing out raises during a severe budget crisis, but it is actually a defensive maneuver.
00:01:04.400 --> 00:01:07.840
Higher education is, well, it's bleeding specialized talent right now.
00:01:08.159 --> 00:01:09.760
Oh, so people are just leaving the industry.
00:01:10.319 --> 00:01:10.640
Exactly.
00:01:11.040 --> 00:01:19.920
If they do not give that 2% bump, their key staff walk, and replacing them in this highly volatile market would cost them triple.
00:01:20.159 --> 00:01:22.640
It is basically spending pennies to save dollars.
00:01:22.719 --> 00:01:23.920
Aaron Powell Okay, I get that.
00:01:24.239 --> 00:01:31.519
But if it is cheaper to give raises than to hire new people, that kind of implies their base operating costs are just fundamentally broken.
00:01:31.760 --> 00:01:34.079
What is actually driving them into the red like this?
00:01:34.239 --> 00:01:38.480
Aaron Powell Well, the overhead is skyrocketing, but the customer base is literally shrinking.
00:01:38.560 --> 00:01:41.680
It is driven by this perfect storm of demographics and policy.
00:01:41.760 --> 00:01:42.239
Aaron Powell Right.
00:01:42.319 --> 00:01:45.920
It feels like trying to run a massive shopping mall built for 1990s foot traffic, right?
00:01:46.079 --> 00:01:46.400
Uh-huh.
00:01:46.640 --> 00:01:50.319
But your actual shoppers have moved online and your electric bill just tripled.
00:01:50.480 --> 00:01:54.560
You cannot just turn off the lights in half the mall without ruining the experience for everyone.
00:01:54.640 --> 00:02:01.040
Aaron Powell And if you think back to the 2008 financial crash, people uh people stopped having kids during that recession.
00:02:01.200 --> 00:02:02.159
Aaron Powell Oh, wow, right.
00:02:02.319 --> 00:02:03.120
The Great Recession.
00:02:03.439 --> 00:02:03.680
Yeah.
00:02:04.239 --> 00:02:10.080
Fast forward 18 years, and we are hitting what economists actually call the demographic cliff.
00:02:10.319 --> 00:02:13.919
There are just simply fewer 18-year-olds entering college today.
00:02:14.240 --> 00:02:19.439
Add to that a drop in international students directly tied to recent federal visa changes.
00:02:19.599 --> 00:02:24.080
Aaron Powell So colleges across the Midwest are suddenly fighting over a much smaller pool of students then.
00:02:24.159 --> 00:02:25.039
Aaron Ross Powell Exactly.
00:02:25.280 --> 00:02:32.960
And if you are listening to this and wondering why your tuition keeps going up while the university is making cuts, well, inflation is the final piece of the puzzle here.
00:02:33.120 --> 00:02:38.879
The university president, Todd Diacon, pointed out that state support has not kept up with rising operational costs.
00:02:38.960 --> 00:02:41.919
Aaron Powell Let me guess, it has actually gone down in real dollars.
00:02:42.000 --> 00:02:42.719
Aaron Powell Big time.
00:02:43.039 --> 00:02:49.840
When you adjust for inflation, state funding for Ohio public universities is roughly 27% lower today than it was in 2005.
00:02:50.240 --> 00:02:50.960
Wait, 27%?
00:02:51.360 --> 00:02:52.240
That is huge.
00:02:52.639 --> 00:02:53.439
It is massive.
00:02:53.520 --> 00:02:55.680
And Kent State isn't alone in this.
00:02:55.919 --> 00:03:01.360
We are seeing identical panic and cost cutting at Penn State, Maryland, Clemson, East Carolina.
00:03:01.439 --> 00:03:02.800
I mean, it is a national crisis.
00:03:02.879 --> 00:03:03.039
Aaron Powell, Jr.
00:03:03.120 --> 00:03:04.080
But how do you even survive that?
00:03:04.240 --> 00:03:08.479
Kent State isn't just taking a lawnmower to the budget and cutting everything evenly, right?
00:03:08.639 --> 00:03:10.319
They are protecting certain things.
00:03:10.400 --> 00:03:13.599
Aaron Powell Yes, they are doubling down on what actually works.
00:03:13.840 --> 00:03:21.360
Departments that show strong enrollment growth, like uh the College of Aeronautics and Engineering in their fashion program, those are being protected.
00:03:21.439 --> 00:03:22.560
Aaron Powell Aeronautics, really.
00:03:22.639 --> 00:03:22.800
Trevor Burrus, Jr.
00:03:22.879 --> 00:03:22.960
Yeah.
00:03:23.120 --> 00:03:29.919
Diacon actually credited the aeronautics program as a primary reason they aren't in worse financial shape compared to their peers.
00:03:30.000 --> 00:03:36.719
Aaron Ross Powell Okay, but if the strategy is ruthless efficiency and protecting high-growth areas, what about all the regional campuses?
00:03:36.960 --> 00:03:43.759
Maintaining multiple physical locations in places like Salem and Tuscarawas, that requires massive overhead.
00:03:43.840 --> 00:03:44.639
Aaron Ross Powell It really does.
00:03:44.719 --> 00:03:50.000
Aaron Ross Powell So from a pure business standpoint, why not just close those down if you are$18 million in the whole?
00:03:50.080 --> 00:03:54.240
Aaron Ross Powell Well, that exact question is sparking a huge political debate right now.
00:03:54.479 --> 00:04:02.319
You had Vivek Ramaswamy recently arguing that universities need to slash administrative overhead and consolidate these operations.
00:04:02.400 --> 00:04:04.479
Aaron Powell Basically run it like a lean corporation.
00:04:04.560 --> 00:04:05.280
Aaron Powell Exactly.
00:04:05.680 --> 00:04:08.000
But President Daikon pushed back on that.
00:04:08.159 --> 00:04:13.280
He didn't name Ramaswamy directly, but he publicly defended those regional campuses.
00:04:13.360 --> 00:04:14.000
Aaron Powell Interesting.
00:04:14.080 --> 00:04:14.879
What was his argument?
00:04:15.280 --> 00:04:19.600
His argument is that these aren't just satellite offices, they are vital lifelines.
00:04:19.759 --> 00:04:25.199
They provide regional access to education for smaller Ohio communities that drives the local economy.
00:04:25.279 --> 00:04:25.920
Aaron Powell Oh, I see.
00:04:26.079 --> 00:04:28.800
So if you shut them down, you aren't just saving money.
00:04:28.959 --> 00:04:32.879
You are effectively cutting off economic mobility for entire regions.
00:04:32.959 --> 00:04:33.120
Trevor Burrus, Jr.
00:04:33.279 --> 00:04:33.360
Right.
00:04:33.519 --> 00:04:40.800
The Board of Trustees still has to approve the final budget, and in the coming weeks, those forty-five people will find out who is actually losing their jobs.
00:04:40.879 --> 00:04:45.199
Aaron Powell This$18 million shortfall isn't just an administrative headache, you know?
00:04:45.759 --> 00:04:55.759
It matters because it directly dictates the future of tuition rates, the academic offerings available to you, and the health of the local economies that rely on these universities to survive.
00:04:56.079 --> 00:04:57.839
It is a massive ripple effect.
00:04:57.920 --> 00:05:00.480
Aaron Powell Which leaves us with a pretty massive question to think about.
00:05:01.040 --> 00:05:12.319
As demographic shifts accelerate, the student pool shrinks, and state funding remains effectively flat, will the traditional model of a sprawling, accessible public university system survive the decade?
00:05:12.480 --> 00:05:14.079
Or are we watching the end of an era?
