Tuesday, November 12, 2013
Paul Campos (Colorado), 80% to 85% of ABA Law Schools Are Currently Losing Money:
Over the past few months I’ve studied the current operating budgets of a representative sample of the nation’s 202 ABA-accredited law schools. ...
I acquired these budgets via various routes, including asking schools for them, open records requests, tax filings, and private communications with individuals. Law school budgets are somewhat arcane documents, both because each school has its own accounting , and because most schools are located within universities. The latter fact creates various complexities in regard to measuring what are known in the business as “indirect expenses” — that is, university-wide operating expenses that must be distributed among the institution’s various schools and colleges. ...
My survey of law school budgets suggests that, on average, law school revenues will be down this fiscal year by about 15% in real terms from where they were three years ago. Costs, meanwhile, have not decreased by the same amount — if anything, they are slightly higher (as of now the rankings struggle continues unabated). Very few law schools were running 15% operating surpluses three years ago, which means that the large majority of law schools — I estimate between 80% and 85% — are incurring significant operating deficits in the present fiscal year.
Above the Law, The Law School Bubble Is Bursting: Over 80% of Law Schools Estimated to be Operating at a Loss:
Do you hear that sound? It’s the sound of music stopping. It’s the sound of a tap running dry. Law schools are living in an F. Scott Fitzgerald novel, and the party is wrapping up.
ABA Journal, A Pyramid Collapse for Law Schools? Most Are Losing Money This Year, Law Prof Says:
Campos drew his conclusion after studying the budgets of 31 ABA-approved law schools, 23 of them private and eight of them public, he says in the comments section to his article. He obtained the budgets various ways, including requests to the schools or through open records laws, tax filings and conversations with private individuals.