One of the most impressive public university systems in the world, the University of California, is under extreme financial pressure in the light of major funding cuts imposed by the state. There are major fears that the university, whose constituent institutions include such global leaders as UC Berkeley and UC Santa Barbara, will have to implement further very drastic cuts and job losses.
One initiative currently being contemplated as a possible contribution to alleviating the crisis is a plan to put a number of programmes online and charge students for taking them – including students not registered with the university. However, in order to do this the university needs to invest to cover the start-up and development costs, and these are estimated to come to up to $7 million. Initially the university declared that this would be raised from private donations, but so far it has only been able to raise $750,000 – and so it has now decided to fund the rest by way of a bank loan. But if it does this, then the overall financial and business plan for the initiative will change fundamentally, and the university also will have to work out how to avoid the significant losses that other universities have suffered with similar initiatives.
How all this will play out remains to be seen. But it might be a good idea for every university president across the world to have a poster in their office reminding them that while online learning is a good idea and can make a very substantial pedagogical contribution, it is never an easy source of profits, and should never be planned with that end in view. Setting up a high quality elearning programme costs a lot of money, and needs to. Running something that is not high quality should not be contemplated at all.
This is not to say that the University ofd California should not be planning an elearning initiative. But it should not do this in order to cover a financial shortfall. To do so is very risky indeed.
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