During the 2008 financial crisis, stocks fell nearly 40%, and the inflation rate was 3.8%. In 2009, stocks rebounded 23%, and inflation fell to -0.36% (Forbes.com, June 2, 2022 and bls.gov). The U.S. is not facing the same set of economic factors as it did in 2008, but it is nonetheless informative and valuable to see how broad economic forces can affect school metrics. Here are just a few:
1.5% Drop in Enrollment
From 2008-09 to 2009-10, Enrollment at INDEX K-12 Schools dropped 1.5%. Median Enrollment continued to fall in 2010-11, but it reversed course in 2011-12 and began its slow and steady climb to today.
24% Increase in Financial Aid
Between 2007-08 and 2008-09, the INDEX median Tuition Discount (all financial aid/gross tuition revenue) increased 24%, rising from 9.8% to 12.2%. From 2009-10 to 2010-11, Tuition Discounting climbed another 11%.
17% Drop in Annual Giving
From 2006-07 to 2008-09, median Annual Giving as a Percentage of Operating Expense decreased 17%. Put another way, in 2006-07, Annual Giving contributed 7% to the school budget, but in 2008-09, that contribution rate had fallen to 5.8%, resulting in a gap between revenue and expenses that had to be made up in some other way.
12% Drop in Average Parent Annual Gift
From 2006-07 to 2008-09, the median Average Parent Gift to Annual Giving dropped 12%.
5% Drop in Parent Participation in Annual Giving
From 2007-08 to 2008-09, Parent Participation in Annual Giving decreased 5.4%.
I hate to end the school year with such a gloomy Notable Numbers, but please know that I am sending you all lots of good karma and best wishes for a relaxing, rejuvenating, and enjoyable summer.