According to the Higher Education Price Index (HEPI), operating cost increased 3.4% in fiscal year 2024. Over the past 40 years, the HEPI has outpaced the Consumer Price Index (CPI) which was largely influenced by ongoing inflation rates. Being that higher education is a labor-intensive industry, professional faculty and staff salaries account for 35% of the HEPI with clerical costs, fringe benefits, and administrative salaries proceeding the next heaviest weighted costs. Since 2016, faculty salaries have recently had a 3.8% yearly increase, but has not increased past last year’s 4% growth.
