I'll preface this by saying I am in education, and have an alternate point of view on the whole education finance issue for some time. I don't think schools need more money, they need to be more efficient. Just saying that education is being robbed of much needed money, doesn't necessarily provide a full picture.
There is an excellent chunk of research about how much schools spend and how it directly translates to better results. Most schools in most states have roughly the same type of margins for students. I'll use Blaine County (Sun Valley as an example) they absolutely throw money (the highest in idaho) about 14,000 per student. What does that translate to? Test results that are and do approach the state average. If you are interested in perusing the data:
https://interactives.americanprogress.org/projects/edu-roi/2011/Main.swf
All the research says throwing money doesn't translate into better education. Needs to be spent wisely. Like all bureaucratic entities, schools aren't managed to spend money efficiently. Moreover schools rarely can show the type of proactive understanding of how to improve student learning and react using industry standardized methodologies to create better results. My former school district spent 50 to 100 grand over the past decade in sending teachers to conferences, bring in consultants. The result? The same results as before. You can spend all the money on teaching teachers, but the reality is that school districts who succeed understand their population base far more and tailor their services and focus their money in providing services that are going to bring results.
As for the state of Montana, the University of Montana and enrollment. The UofM is behind the times. You can hate on on-line education, but the fact of the matter why should it matter where you learn. There are obvious benefits to person-to-person relationships that are fostered by traditional campus settings. But if you are going to be hired by the same firm, business regardless if you attend a four year traditional school, or on on-line program that provides competency based education where you can complete the same work in half of the time, why wouldn't you choose the second? You can complete through WGU an education for elementary teachers in essentially 2.5 years, where the same college requirements at the UofM push over the 4 year average for teh same. The cost? About 15 grand for WGU. The cost for a comparative 4 year school in the region for the same? Pushing closer to 50 grand. If you use BSU or UI you are looking at 10 grand a year for that campus experience. The economic return is absurd. Most on-line programs hire rates are competitive or even exceed traditional 4- year schools.
Why pay for things you don't have to, because of what? Experience, culture, and a liberal arts education. Secondly, you choose on-line systems of education because they are competency focused, eliminate all the chaff, and focused on your major field.
That being said, I am of firm belief the UofM needs to find a clear direction forward. If it wants to remain a classic 4 year liberal arts school that wants to focus on broadening people's experience, then you are going to have to work incredibly hard to sell the culture and not the programs. Being a Humanities major, a social sciences major doesn't sell like it did once before. There isn't a big economic return, especially in field, for many liberal arts programs. That doesn't mean you should punt those programs an add in a bevy of revenue producing programs, but it does mean you are going to have to work to sell efficiency, experience and the quality of education. Because the UofM doesn't differentiate itself academically from its peers, or hasn't perceptively, and the status quo isn't working.
I think the blame can be placed in Engstrom's lap, not because he caused it, but rather he has been at least publicly very obtuse and slow to respond. Engstrom, at least anecdotally, is a fine man and does recognize the problems, but you have to begin to question if he or the regents have a long term plan. Montana as a school is way too important for the university admin, city and state to be so slow and ponderous and come up with so few rational responses to the issues. There are obviously better people out there than I to provide solutions, but this can't be sustainable for much longer as it is.