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.

Does America need a National University?

Jun 29, 2006 ·

An idea dating from 1789 has recently been resurrected – the creation of a national university for the United States. George Washington proposed exactly that in his first inaugural address and two young idealists have now set up an organization that will push for the creation of such a university.

Writing in the June 16th Chronicle of Higher Education (subscription required), Chris Myers Asch, chairman of the Campaign for a U.S. Service Academy argues that the U.S. needs to have a national university “designed to cultivate a steady flow of first-rate young leaders dedicated to civic leadership.” (Another article on the subject is available here.) Asch and Shawn Raymond, both of whom taught in the Teach for America program and subsequently founded a non-profit group to provide after-school tutoring to low-income students, are promoting the establishment of a United States Public Service Academy because they think it’s time to “tap into a renewed sense of patriotism and civic obligation among young people.”

College Board misguided on student debt proposals

Jun 15, 2006 ·

Every year as students graduate and enter the workforce, the media is prone to write stories that chronicle the lives of selected students as they struggle with student loan repayments. They usually write sad pieces on how loan payments make it difficult for students to live as they’d wish.

A recent study by the College Board entitled “How Much Debt Is Too Much? Defining Benchmarks for Manageable Student Debt,” by Sandy Baum of Skidmore College and Saul Schwartz of Carleton University, jumps into that issue. The authors, while finding that only a small minority of students have trouble managing their student debts, suggests several “policy” changes that they believe should be made.

The body of the paper consists of the authors’ analysis of an appropriate “benchmark” for how much debt it’s prudent for students to have. Their concern is that with too much debt, former students will have to sacrifice or delay other major things in life, such as home ownership. After much analysis and discussion, they say that “repayment will rarely be a problem if payments are below 7 percent of income and that few students would be well advised to exceed 17 percent.”

Cleveland introduces bill to overturn scholarship provision

May 26, 2006 ·

RALEIGH – A state legislator is calling for a controversial budget provision seen by many as a gift to athletic booster organizations to be overturned before the costs get out of hand.

Rep. George Cleveland, R-Onslow, said that a budget provision in last year’s budget that allowed UNC institutions to consider out-of-state residents as in-state residents for purposes of awarding scholarships was bad fiscal policy for taxpayers. Cleveland has since introduced legislation to overturn the provision. The bill is House Bill 2423.

Taxpayers, Cleveland said, should not front the costs of a program that helps out-of-state students.

“I don’t see why taxpayers should worry about it,” Cleveland said about scholarship funding. “That is a school problem, not a taxpayer problem.”

Does UNC need to expand?

May 25, 2006 ·

When I first saw the email heading – “Could NC Wesleyan become a UNC school?” – I thought it was going to be a joke.

But as I read through the news item, I found out that several members of the General Assembly are quite serious about wanting to have North Carolina Wesleyan College be taken over by the University of North Carolina system. The idea is laughable, but they’re serious.

A provision was included in the Senate budget bill to study (at a cost to the taxpayers of $50,000) the feasibility of bringing this liberal arts college that is affiliated with the United Methodist Church into the big UNC congregation. Why on earth would we want to start ladling public money into a school that has managed quite well for half a century on funds raised from willing donors and students?

The Perils of Collegiate Philanthropy

May 11, 2006 ·

Large donations to colleges and universities have a troubled history, but nothing compares with the legal battle between Princeton University and the Robertson family. This fight has important lessons for anyone who is contemplating a gift to an institution of higher education.

Here’s the background.

Charles Robertson was a Princeton graduate, class of 1926. His wife inherited a fortune through her grandfather, the founder of the A&P grocery chain. In 1961, the Robertsons created the Robertson Foundation and endowed it with $35 million worth of A&P stock. The certificate of incorporation stated the purposes of the Foundation:

“To establish or maintain and support, at Princeton University, and as a part of the Woodrow Wilson School, a Graduate School, where men and women dedicated to public service may prepare themselves for careers in government service, with particular emphasis on the education of such persons for careers in those areas of the Federal Government that are concerned with international relations and affairs….”

Easley releases budget document

May 9, 2006 ·

RALEIGH – The University of North Carolina and the North Carolina Community College System are slated to receive budget increases of more than 10 percent in a budget proposal released Tuesday by Gov. Mike Easley.

Easley’s budget announcement, which was announced during a press conference, came on the same day legislators returned to Raleigh for the start of the short session. More information about the budget is expected to be released Monday during a Joint Appropriations Committee meeting that will include a budget briefing.

In all, Easley is recommending a state budget of $18.85 billion, up from $17.2 billion for the current fiscal year. The budget request increases spending thanks in part to a $2 billion surplus in revenues.

Academic Year 2006: The Final Exam

May 4, 2006 ·

Students on campuses across North Carolina will soon take their final exams. Some have already started. Those exams are supposed to measure what a student has learned in the course, although they may do little more than increase the profits of stores that sell caffeine all night.

So if we were to take a final examination of what we learned this academic year, how would we do? What have we learned from the events that transpired since mid-August when students traded in their sun block and golf clubs for textbooks and book bags? Certainly there have been enough significant events in higher education to make us think about academe in both positive and negative lights. Reviewing for an end-of-year exam, what should we cover?

Faculty Pay – Is Higher Education Being “Devalued?”

Apr 27, 2006 ·

Each year, the American Association of University Professors (AAUP) puts out a study on faculty compensation. This year’s study takes on a somewhat alarmist tone. Its title, “The Devaluing of Higher Education”suggests that there is some ominous trend at work that could make “faculty positions less appealing for the next generation of scholars.”

The difficulty, according to the AAUP researcher, is that in 2005-06, average faculty salaries increased less than the rate of inflation. While average gross pay rose by 3.1 percent, inflation (measured by the Consumer Price Index) increased by 3.4 percent. That’s a pretty small erosion of purchasing power and since the inflation rate was unexpectedly high – it had been around 2.5 percent for several years – it’s hard to see this as a serious “devaluing” of higher education. Rather, it looks like a minor bump in the road. The study doesn’t say whether there have been years when average faculty compensation exceeded the rate of inflation, but that has undoubtedly occurred.

Is it Possible to Reduce College Costs?

Apr 20, 2006 ·

The Secretary of Education’s Commission on the Future of Higher Education recently released several studies. One of them, written by Robert C. Dickeson, deals with perhaps the most frequently discussed college topic of all – does it have to cost so much?

Higher education is very labor-intensive, so if you want to find ways to lower costs, labor is the first place to look.

Dickeson points to tenure as being one reason why labor costs are higher than they need to be. The decision to grant tenure, he notes, carries with it a price tag that often exceeds $1 million. Its effect is to reduce institutional flexibility in two ways. First, if student interest in a field declines, the school can’t readily adjust; it’s stuck with a tenured professor even if students aren’t enrolling in his courses any more. Second, a tenured professor who is no longer effective – someone who is just coasting along, putting forth a minimal effort for his students – is hard to remove. Although tenure is not an absolute job guarantee, trying to remove a professor with tenure is a costly, time-consuming task that many administrators don’t want to try.

Bowles innagurated as president

Apr 13, 2006 ·

GREENSBORO – Erskine Bowles was inaugurated Wednesday as the 16th president of the University of North Carolina. His official swearing-in was held at UNC-Greensboro, four months after he took the job on Jan. 1.

The festivities began with a faculty procession down Spring Garden Street led by the N.C. A&T State University marching band. Wake Superior Court Judge Howard Manning Jr. administered the oath of office, and Crandall Bowles held a family Bible for her husband. About 1,500 people filled Aycock Auditorium to hear the former U.S. Senate candidate outline his plan for the 16-campus system.