Costs

American colleges and universities spend billions of dollars a year from state, federal, and private sources. The following articles identify ways to cut costs and ensure that public investment in higher education provides value to students, taxpayers, and society.

Can States Use Higher Education as an Economic Tonic?

Jan 4, 2007 ·

Politicians in three Midwestern states – Michigan, Indiana, and Wisconsin – have lately been working on plans that are based on the idea that higher education can spur state economies along to better performance. While the details differ somewhat, all are rooted in the concept that increasing the number of residents with college educations is an investment for the government. Put some money in now, get much more money back later.

Will it work?

In Michigan, Governor Jennifer Granholm calls the new Michigan Promise scholarship a cornerstone of her economic plan to revive Michigan’s lagging economy. The program provides a $4,000 scholarship to students who complete two years of post-secondary education at a two- or four-year school in Michigan, public or private, provided that they have a GPA of at least 2.5. In her press release, Governor Granholm stated, “A $4,000 scholarship makes earning a college degree or technical certification a real possibility for every student. It’s an amazing opportunity for our students and a critical necessity for our economy.” This new scholarship is part of an effort by the state to double the number of college graduates within the next decade.

The Top 10 Nuttiest Campus Events in 2006

Dec 27, 2006 ·

Tis the season for traditional fare, and here it’s been tradition to take one last, not-so-fond look back at ten campus events of the expiring year that made us blush, cringe, or otherwise experience unpleasantness.

Blue Ridge CC censured by state board

Dec 20, 2006 ·

RALEIGH – The Blue Ridge Community College’s Board of Trustees was censured Friday for its actions after an investigative audit in January found multiple financial violations involving the school’s baseball program. The expression of disapproval comes after talks failed between the school and the state to resolve some of the concerns listed in the audit report.

The censure took the form of a resolution approved during a special meeting called to address Blue Ridge Community College. It specifically deals with the board’s failure to monitor the actions of Blue Ridge Community College President David Sink and his involvement with the athletics department.

Bi-Weekly Notebook

Dec 15, 2006 ·

RALEIGH – The North Carolina Independent Colleges and Universities is pushing to extend the state’s Legislative Tuition Grant program to part-time students. Hope Williams, president of the association of non-profit private colleges in the state, made the appeal at a meeting of the Joint Legislative Education Oversight Committee in December.

The legislative tuition grant (called NCLTG) is a popular state program that has been in effect since 1975. In the 2006 short legislative session, the General Assembly raised the maximum grant per student from $1,800 to $1,900 per year.

The NCLTG program was created primarily to bolster private schools rather than provide financial aid. Even before the NCLTG program was created, the General Assembly adopted a need-based financial grant program for private education, the State Contractual Scholarship Fund program. That program continues today, but pays out less — $33. 7 million to colleges, compared with $48.1 million through the NCLTG program.

Offer to help, get your hand chewed off

Dec 8, 2006 ·

Recently the new dean of the school of humanities, arts, and sciences at NC State asked to meet with Art Pope, who heads the John W. Pope Foundation. The Foundation has given substantial financial assistance to higher education in North Carolina over the years and Dean Toby Parcel wanted to see if it would be possible to arrange additional support, particularly for foreign language programs.

The meeting was cordial and productive. Afterward, however, when Dean Parcel reported to her faculty on the prospect of Pope Foundation support, many members threw the adult version of a tantrum. One professor declaimed that money from the Pope Foundation was “dirty money” that would corrupt the university. Another opined that taking money from the Pope Foundation would be as bad as taking money from the Ku Klux Klan.

Gary Becker and Richard Posner Discuss Student Aid Programs

Dec 5, 2006 ·

Two famous University of Chicago professors, Gary S. Becker and Richard A. Posner have a blog on which a great variety of topics come up for discussion. Becker is the 1992 winner of the Nobel Prize in Economics and Posner is a judge on the 7th Circuit Court of Appeals who has written many books in the field of law and economics. In an exchange posted on December 3, they traded thoughts on the proposals floating in Washington for making student loan programs less costly.

Bi-Weekly Notebook

Dec 1, 2006 ·

RALEIGH – North Carolina Community College System leaders could be paving the way for a future bond referendum with their current budget request.

Leaders discussed the possibility of a bond referendum when approving, in November, a $1.11 billion budget request for the 2007-09 biennium. That budget request also seeks an additional $1.35 billion for capital needs. Vice President for Business and Finance Kennon Briggs admitted that the budget is large and may be unrealistic. Briggs did not say how much a possible bond would be or when the system would attempt a bond package.

“We have to state our case now and continue to pound the message,” Briggs said.

A closer look at the UNC budget request

Nov 30, 2006 ·

When the General Assembly considers the University of North Carolina budget request in January, UNC President Erskine Bowles will once again be at the center of attention.

During the short session this year, Bowles was still in the initial months of his presidency, leading the charge for $299 million in new UNC funding. When the dust settled, Bowles had been able to garner 55 percent of that requested funding, increasing UNC’s general fund appropriation to $2.2 billion. In the months since, Bowles has been heralded for his effectiveness in working with legislators.

Democrats set higher education agenda

Nov 28, 2006 ·

WASHINGTON – Days after securing control of U.S. Congress for the first time since 1994, Democratic leaders in the House of Representatives and U.S. Senate began to formulate their agenda for the upcoming 110th Congress. Among the top agenda items for Democrats are higher education initiatives that could increase federal spending.

Chief among the higher education projects for Democrats is an attempt to make college more affordable by slashing interest rates and increasing funds for Pell Grants. College Republicans cut $12 million from the program to reduce budgetary spending. Other plans include increased funding for teacher education, higher education research, and tax deductions geared towards math, science, technology and engineering students.

Bi-Weekly Notebook

Nov 17, 2006 ·

RALEIGH – University of North Carolina President Erskine Bowles maintained his image of business-like efficiency when he spoke before the Joint Legislative Education Oversight Committee on Nov. 15. Although his chief purpose was to describe the details of the 6.5 percent tuition cap, he made other points about the university administration’s commitment to efficiency, transparency, and accountability. For one, he said that the university has clarified its priorities. Budget requests for the upcoming year take up 32 pages, compared with 347 or 348 last year. Financial aid and faculty salaries top the priorities list.