President Obama has apparently now decided to try to punish universities and colleges, even state universities and colleges, who raise their tuition by “excessive” amounts. This is, pardon my language, absolutely asinine. It’s also addressing a very real problem with a simplistic approach that shows either no understanding of the problem or no intention to really address it, if not both.
To begin with, he doesn’t have the leverage to do this directly, but only through the threat of withholding direct federal funding, which doesn’t include federal loans and grants made directly to students, and which amounts to less than 3% of total federal funds going to students and institutions of higher education. The real reason for the increase in student tuition, particularly at state colleges and universities, is the significant decline in the funds provided by the state legislatures over the past several decades. In just the last year, state support to state universities and colleges dropped more than 7%.
Over the last 30 years, tuition for an undergraduate degree has increased roughly 600%, while the cost of living has increased 250%
Why and how did this happen? It happened because, over the last twenty-five years, the number of students pursuing an undergraduate degree increased by almost 45% at a time when the percentage of state spending on higher education declined, resulting in a huge decrease in the percentage of tuition costs subsidized by state governments. So, although total state funding of higher education did initially increase by some twenty percent [until about ten years ago], that increase was overwhelmed by a huge influx of additional students, and without additional state funding the only way the state colleges and universities could cope was by increasing tuition.
My wife’s own university is a good example. The number of students enrolled has almost tripled in the last twenty years, while the faculty has increased by less than forty percent. Faculty salaries have been frozen for at least six years out of the last eighteen, and yet tuition increases have averaged roughly 7% for the last three years, and an 11% increase is budgeted for next year. On average, faculty pay has averaged increases of 3-4% per year over the last 20 years, and that includes rank and merit raises. Over the same period, in real dollar terms, despite an outstanding record, and two promotions, in real dollar terms, my wife now makes only about 10% more as a tenured full professor with an incredible record of achievement than she did twenty years ago as a newly-hired untenured assistant professor.
These numbers are similar for virtually every public university in the country, as study after study shows. The problem is not, despite popular beliefs, high-paid professors and wasteful spending, but simply a massive increase in students coupled with a lagging of state support – and President Obama’s threat to colleges and universities totally ignores the basic economics.
One of the more disturbing results of this funding crisis is that, on average, the salaries of tenured or tenure-track assistant, associate, and full professors at state colleges have dropped from being roughly comparable to those at private colleges and universities twenty years ago to being 20% lower than those at private schools today. Add to that the fact that professors at public institutions generally teach larger classes [represented by the fact that the student-teacher ratio is almost 50% higher at public institutions], and the discrepancy becomes effectively larger. What this also means is that, over time, a larger percentage of the best professors will migrate to private colleges and universities, and not only will students at state institutions have the problems of larger classes, capped enrollments in classes [because classrooms are only so large and in specialized classes, professors are limited in the number of students they can effectively educate], but also fewer of the very best professors, particularly in the years ahead, when senior tenured professors, who have remained in state institutions because they’ve established roots there, retire.
And the threat of withholding $3 billion in federal funds does nothing to address the problem.