FILE -- Metropolitan State University of Denver freshmen Savannah Bass, 18, left, and Taylor Laine, 19, study on the second floor of the new Student Success Building. (Andy Cross, The Denver Post)
When officials from Adams State University sat down before the Joint Budget Committee recently, one of the contingent said he felt "like we're standing in front of a firing squad." And while they were assured that wasn't the case, it's clear that a number of Colorado schools are firmly in the legislative cross hairs.
A study prepared for the JBC indicated that six schools — Adams State, Colorado Mesa University, Colorado State University, Fort Lewis College, University of Northern Colorado and Western State Colorado University — fell below the threshold that indicated "moderate financial health" during the 2012-13 fiscal year.
Even more distressing for Adams and Western State, their scores registered below zero, prompting the report to question "the long-term sustainability" of the schools.
And while the institutions are talking tough — "we've been here for 90 years, and we'll be here for another 90," Adams State President David Svaldi said — the numbers haven't gone unnoticed.
After the hearings concluded, the JBC sent additional instructions to Adams State and Western State, asking them to provide the committee with strategic plans for turning around their financial straits as well as the means for the General Assembly to track their progress in the near future.
"At this point, it's more of a fact-finding phase, but these conversations are going to be ongoing, and it will be very important that they come up with long-term plans and to show us how they see themselves achieving fiscal security," said Rep. Crisanta Duran, the chair of the JBC.
The study is done each year prior to the schools testifying before the JBC. One of the issues this year's study focused on was the financial health of schools throughout the state. The analysis was prompted because of reports citing an increase in the number of schools failing nationally under the weight of financial strain.
Based on indexes the report said are commonly used in higher education, the JBC study looked at factors including the schools' financial resources, debt management, asset performance and net operating revenue, with a score of 3.0 or higher indicating "moderate financial health."
While Adams and Western State's scores were far below that figure, officials say there are mitigating circumstances.
"I think the analysis picked the worst year that could have been picked to look at," Brad Baca, the interim president of Western State, said. "It didn't tell the full story — in that particular year, everyone was responding to the 26 percent cut in higher education funding."
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The issue also becomes complicated, however, with the realization that four of the six schools below the healthy cutoff are located away from the Front Range. That opens up questions and concerns in areas like access to higher education in rural areas as well as for populations that have traditionally been underserved.
"Given where we're at, in the San Luis Valley, Adams State isn't just a chance to receive a college education; for some, it's the only chance," Svaldi said. "People will say go up to Denver, to the Front Range, but realistically that doesn't happen. For people here that culture isn't reassuring and it's hard to be away from family."
Lt. Gov. Joe Garcia, the executive director of the Colorado Department of Higher Education, points out the irony of the report being released during hearings that highlighted a second consecutive year of increased funding for higher ed. The current budget saw a $30 million increase for schools, while next year's proposal has $60 million earmarked for their general funds with another $40 million in financial aid.
"The smaller schools have always operated on a thinner margin, and the recent declines in state funding hasn't helped them — hopefully these increases will help them through a difficult time," Garcia said. "That being said, the schools will also need to be creative in providing better ways to serve their populations."
According to Garcia, Colorado is just one of three states in the nation expected to see an increase in the coming years in the number of high school students attending college, a boost that he says will be spread across the state.
"It will be a growth opportunity for them," he said.
Although enrollment dipped slightly the last two years, Svaldi said that since 2007, enrollment at Adams State has increased by 27 percent. Western State officials said their enrollment has grown by 2 percent and 4 percent in each of the last two years, as the school searches for ways to increase its footprint.
One example is concurrent education. The number of students taking college classes at Western State while still in high school has increased from just 10 students two years ago to more than 130 today.
In addition, said Baca, the school's reserves have grown from about $1 million in 2002 to $8 million today.
"If you look at our performance since that year, we've been well within the target zone."
Anthony Cotton: 303-954-1292, acotton@denverpost.com or twitter.com/ anthonycottondp
The Joint Budget Committee, in its annual higher education report, looked at the financial health of public colleges and universities across the state, using factors like resources, debt management, asset performance and net operating revenues. A composite score of 3.0 or higher indicated "moderate financial health."
Here is how the systems scored:
Colorado Community College System: 5.9
Colorado School of Mines: 4.2
University of Colorado: 3.8
Metropolitan State University of Denver: 3.8
Colorado State University: 2.8
Colorado Mesa University: 2.7
Northern Colorado University : 2.0
Fort Lewis College: 1.9
Adams State University: -.5
Western State Colorado University: -1.2
Source: Joint Budget Committee
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