NBOA President and CEO
Donald Trump in the White House: Whatever our personal feelings about the presidential election, we in the independent school community can unite in a shared understanding of the potential impact on independent schools. Four other national leaders and I talked about this last week, resulting in this mixed bag of thoughts about potential plusses and minuses under the new administration.
From my perspective, there is certainly an "X" factor with the new administration, just as there was throughout the campaign. Will President Trump do everything he pledged during the campaign? Will he govern in concert with a Republican-led Congress in both chambers and advance programs and policies in alignment with a traditional Republican agenda? Who knows, but the greatest interest among my fellow independent school leaders focused on the following.
On the plus side ...
Tax breaks benefitting families and school affordability: Tax breaks for upper-income households would certainly be a net positive for independent school affordability, enrollment and fundraising, and could even take some pressure off our financial aid budgets. Many of the families who would benefit from tax reform comprise a large portion of our current families and target market.
Less federal support for public education: It may ultimately be good news for independent schools if the Department of Education has a diminished role in a Trump administration (DOE often finds itself on the short list of federal departments that should be eliminated). We know that demand for independent schools increases when public schools in the same market underperform and/or are underfunded. Candidate Trump also indicated he would look at the benefits of education vouchers and tax credits, which would also help make our schools more affordable.
Areas of concern ...
International student enrollment: There is certainly reason for concern regarding whether our boarding and day schools will remain attractive to international students. If the dollar maintains its strength, our schools will become less affordable to them. Additionally, potential shifts in immigration and trade policies could make international families see our schools as less hospitable for their sons and daughters. Some believe countries such as Canada, England and Australia will be enrollment beneficiaries if the United States is no longer viewed as the go-to country for independent schools and higher education.
The value of inclusive communities: As we saw over the last 18 months, the campaign's heated rhetoric inspired student actions involving our schools' commitment to diversity and inclusion of all kinds. This commitment may become an even more important part of our value proposition as families seek educational institutions that support them and help make sense of a world that may seem less tolerant and more chaotic.
Changes to DOL/ACA compliance: Compliance issues regarding Affordable Care Act reporting may diminish entirely for independent schools if the reporting mandate is eliminated as part of a repeal of Obamacare. But for now, schools should assume that they must comply. Another area to watch is the Department of Labor's new salary requirement for overtime eligibility that goes into effect December 1. The doubling of the salary threshold has been challenging for independent schools as well as higher education. It also is very unpopular with the larger business community. NBOA will continue to monitor any rollback of these requirements under the next administration and Republican-led Congress. Further reading: NBOA ACA compliance resources; NBOA FLSA resources; a broader look at regulations affecting nonprofits.
Thanks to my colleagues Heather Hoerle of the Enrollment Management Association, Pete Upham of the Association of Boarding Schools, and Donna Orem and Deb Wilson of the National Association of Independent Schools for contributing to my thoughts. They generously shared their unique perspectives, and I invite you to do the same by contacting me at jeff.shields@nboa.org or on Twitter (@shieldsNBOA).
Follow NBOA President and CEO Jeff Shields @shieldsNBOA.
