UA Global Campus pays 'practically nothing' to faculty, think tank says

An Arizona-based think tank claims the University of Arizona Global Campus is only breaking even because it is paying unfair wages to its instructors.

The Grand Canyon Institute bills itself as a nonpartisan firm that monitors policy and education. In its new report bashing the UA’s outside consulting audit of UAGC, conducted by Ernst & Young, the think tank claims the report “fails” to focus on “serious shortcomings” in the UAGC merger into the UA, including the low pay of instructors.

“While the E&Y report indicates that UAGC is breaking even, that occurs because 95% of its faculty are poorly paid adjunct faculty,” GCI’s report says, adding that paying faculty more “would move UAGC from breaking even to (being) a financial drain on the university.”

Adjunct UAGC faculty are paid $19.25 per hour for undergraduate courses and $24-$25 per hour for graduate classes. An adjunct at UAGC teaching a class of 50 enrolled students makes $1,810, while a similar adjunct position at the UA pays at least $5,000 per course.

“They’re only breakeven because they pay their faculty practically nothing,” GCI Research Director Dave Wells told the Arizona Daily Star of the online university the UA acquired in 2020.

Additionally, the GCI report flagged concerns about the marketing costs needed to recruit students. According to the Ernst & Young report, UAGC spends more than $5,000 for each undergraduate student who enrolls, compared to $1,500 spent by Arizona Online and public institutions which “typically” pay less than $300 in marketing costs to enroll a student.

In a statement to the Star, UA spokesperson Mitch Zak did not directly respond to inquiries about the low pay of UAGC faculty or the cost of marketing, instead pointing to the mission of the UA Global Campus.

“Operational costs associated with serving non-traditional students are significantly different from and not comparable to the costs of traditional universities,” Zak wrote. “The (Ernst & Young) independent assessment report, conducted by one of the most trusted and experienced global services firms, affirms the U of A’s decision to establish and begin a multi-year process to integrate UAGC with Arizona Online to serve students.”

Wells, of the GCI, said he has some hesitation about the Ernst & Young authors’ expertise in this area, despite the firm’s overall reputation. “Ernst & Young is not an academic entity. So I think, you know, they come in with some limitations in my opinion.”

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The Star asked Ernst & Young for comment and hasn’t heard back.

Ernst & Young, which was hired by the Arizona Board of Regents to conduct reports on UAGC and the UA’s athletics department, is a nationwide consulting firm. Its website does not list “education” as an industry it usually works with, though it does list “government and public sector.” Its consulting list includes “risk consulting services” and “finance consulting services.”

The group’s report on UAGC was generally positive, saying its “future operations are well-positioned to be financially sustainable and generate surplus for the university.”

Wells and his GCI report pointed to the fact that the Ernst & Young audit mentioned UAGC’s steady enrollment decline of 14%, though did not flag it as a serious issue.

“The Ernst & Young report fails to flag the dramatic drop in enrollment at UAGC (14% per year) since the takeover as an area of concern,” the GCI report states. “(We) anticipate these enrollment declines will continue.”

UA spokesperson Zak did not directly answer questions about the declining enrollment rate but told the Star that “U of A and UAGC leaders have confidence in the (Ernst & Young) report’s thoughtful insights and informed recommendations.”

Zak added that “as the higher education landscape continues to evolve, a commitment to integrated online education will help the U of A meet its land-grant mission and provide high-quality educational opportunities to diverse communities worldwide.”