Robert B. Archibald and David H. Feldman
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199744503
- eISBN:
- 9780199866168
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199744503.003.0015
- Subject:
- Economics and Finance, Financial Economics
Public colleges and universities currently receive significant subsidies from state governments through state appropriations for operations. As a fraction of university operating costs, these state ...
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Public colleges and universities currently receive significant subsidies from state governments through state appropriations for operations. As a fraction of university operating costs, these state appropriations have decreased substantially over time, but in a very erratic fashion. The fact that these important subsidies have been so erratic makes planning very difficult at a state school. Also, state budget rules do not allow institutions to save money for future use. This chapter argues that the implicit financing contract between states and their public institutions is irretrievably broken, and advocates a new system for state support. State support should go to students in the form of vouchers. Schools should not receive any direct appropriation from the state, but they should own their tuition revenues. This twin reform would change the politics of higher education within states, and give state universities better incentives. This “New Compact” would ensure financial stability at public institutions.Less
Public colleges and universities currently receive significant subsidies from state governments through state appropriations for operations. As a fraction of university operating costs, these state appropriations have decreased substantially over time, but in a very erratic fashion. The fact that these important subsidies have been so erratic makes planning very difficult at a state school. Also, state budget rules do not allow institutions to save money for future use. This chapter argues that the implicit financing contract between states and their public institutions is irretrievably broken, and advocates a new system for state support. State support should go to students in the form of vouchers. Schools should not receive any direct appropriation from the state, but they should own their tuition revenues. This twin reform would change the politics of higher education within states, and give state universities better incentives. This “New Compact” would ensure financial stability at public institutions.
Robert B. Archibald and David H. Feldman
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199744503
- eISBN:
- 9780199866168
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199744503.003.0009
- Subject:
- Economics and Finance, Financial Economics
This chapter starts the part of the book focused on tuition setting. The first part lays out the relationships among costs, institutional subsidies, student-specific subsidies, list-price tuition, ...
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This chapter starts the part of the book focused on tuition setting. The first part lays out the relationships among costs, institutional subsidies, student-specific subsidies, list-price tuition, and the part of total tuition that students have to finance. The second part of the chapter focuses on institutional subsidies. These are the subsidies public institutions receive from state appropriations and the subsidies that public and private institutions receive from endowment earnings and gifts. These institutional subsidies allow institutions to charge an average tuition that is less than the average cost of providing the education. The chapter ends by exploring how the relative importance of these subsidies has evolved recently. Public institutions have become more dependent on tuition, while private institutions have become less dependent on tuition.Less
This chapter starts the part of the book focused on tuition setting. The first part lays out the relationships among costs, institutional subsidies, student-specific subsidies, list-price tuition, and the part of total tuition that students have to finance. The second part of the chapter focuses on institutional subsidies. These are the subsidies public institutions receive from state appropriations and the subsidies that public and private institutions receive from endowment earnings and gifts. These institutional subsidies allow institutions to charge an average tuition that is less than the average cost of providing the education. The chapter ends by exploring how the relative importance of these subsidies has evolved recently. Public institutions have become more dependent on tuition, while private institutions have become less dependent on tuition.
Robert B. Archibald
- Published in print:
- 2017
- Published Online:
- July 2017
- ISBN:
- 9780190251918
- eISBN:
- 9780190251949
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190251918.003.0007
- Subject:
- Economics and Finance, Public and Welfare
Changes in public funding of higher education have affected cost, price, and access. State budgets have become more volatile in recent years, and this has increased budget uncertainty for public ...
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Changes in public funding of higher education have affected cost, price, and access. State budgets have become more volatile in recent years, and this has increased budget uncertainty for public institutions. In addition, the real value of state appropriation has trended downward in most states for many years. Public universities continue to fall further behind selective private competitors in spending per student. Falling quality at many public universities affects time to graduation and graduation rates, and the burden falls disproportionately on less-well-off students. We risk a bifurcation of our higher education system into well-funded selective private colleges and a less selective underfunded public sector that serves the bulk of the nation’s most vulnerable students.Less
Changes in public funding of higher education have affected cost, price, and access. State budgets have become more volatile in recent years, and this has increased budget uncertainty for public institutions. In addition, the real value of state appropriation has trended downward in most states for many years. Public universities continue to fall further behind selective private competitors in spending per student. Falling quality at many public universities affects time to graduation and graduation rates, and the burden falls disproportionately on less-well-off students. We risk a bifurcation of our higher education system into well-funded selective private colleges and a less selective underfunded public sector that serves the bulk of the nation’s most vulnerable students.
Robert B. Archibald and David H. Feldman
- Published in print:
- 2017
- Published Online:
- July 2017
- ISBN:
- 9780190251918
- eISBN:
- 9780190251949
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190251918.001.0001
- Subject:
- Economics and Finance, Public and Welfare
This book evaluates the threats—real and perceived—that American colleges and universities must confront over the next thirty years. Those threats include rising costs endemic to personal services ...
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This book evaluates the threats—real and perceived—that American colleges and universities must confront over the next thirty years. Those threats include rising costs endemic to personal services like higher education, growing income inequality in the United States that affects how much families can pay, demographic changes that will affect demand, and labor market changes that could affect the value of a degree. The book also evaluates changing patterns of state and federal support for higher education, and new digital technologies rippling through the entire economy. Although there will be great challenges ahead for America’s complex mix of colleges and universities, this book’s analysis is an antidote to the language of crisis that dominates contemporary public discourse. The bundle of services that four-year colleges and universities provide likely will retain their value for the traditional age range of college students. The division between in-person education for most younger students and online coursework for older and returning students appears quite stable. This book provides a view that is less pessimistic about the present, but more worried about the future. The diverse American system of four-year institutions is resilient and adaptable. But the threats this book identifies will weigh most heavily on the schools that disproportionately serve America’s most at-risk students. The future could cement in place a bifurcated higher education system, one for the children of privilege and great potential and one for the riskier social investment in the children of disadvantage.Less
This book evaluates the threats—real and perceived—that American colleges and universities must confront over the next thirty years. Those threats include rising costs endemic to personal services like higher education, growing income inequality in the United States that affects how much families can pay, demographic changes that will affect demand, and labor market changes that could affect the value of a degree. The book also evaluates changing patterns of state and federal support for higher education, and new digital technologies rippling through the entire economy. Although there will be great challenges ahead for America’s complex mix of colleges and universities, this book’s analysis is an antidote to the language of crisis that dominates contemporary public discourse. The bundle of services that four-year colleges and universities provide likely will retain their value for the traditional age range of college students. The division between in-person education for most younger students and online coursework for older and returning students appears quite stable. This book provides a view that is less pessimistic about the present, but more worried about the future. The diverse American system of four-year institutions is resilient and adaptable. But the threats this book identifies will weigh most heavily on the schools that disproportionately serve America’s most at-risk students. The future could cement in place a bifurcated higher education system, one for the children of privilege and great potential and one for the riskier social investment in the children of disadvantage.
- Published in print:
- 2007
- Published Online:
- March 2013
- ISBN:
- 9780226306254
- eISBN:
- 9780226306261
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226306261.003.0003
- Subject:
- Society and Culture, Ethical Issues and Debates
This chapter examines the contribution of industry in the funding of universities in the U.S. It suggests that contrary to popular belief industry is a very minor participant in the financing of ...
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This chapter examines the contribution of industry in the funding of universities in the U.S. It suggests that contrary to popular belief industry is a very minor participant in the financing of academic research. It explains that most of the money for higher education comes from federal agencies, endowment income, philanthropic foundations, tuition, private gifts, and state appropriations. The statistics for 2005 shows that universities spent $45.8 billion on research and development and only $2.3 billion of that amount came from industry.Less
This chapter examines the contribution of industry in the funding of universities in the U.S. It suggests that contrary to popular belief industry is a very minor participant in the financing of academic research. It explains that most of the money for higher education comes from federal agencies, endowment income, philanthropic foundations, tuition, private gifts, and state appropriations. The statistics for 2005 shows that universities spent $45.8 billion on research and development and only $2.3 billion of that amount came from industry.
Robert B. Archibald
- Published in print:
- 2017
- Published Online:
- July 2017
- ISBN:
- 9780190251918
- eISBN:
- 9780190251949
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190251918.003.0002
- Subject:
- Economics and Finance, Public and Welfare
The American higher education system consists of over 4,700 institutions educating over twenty-one million students. The most striking feature of this system is its diversity. There is no “typical ...
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The American higher education system consists of over 4,700 institutions educating over twenty-one million students. The most striking feature of this system is its diversity. There is no “typical college.” Much of the story about the future of America’s four-year higher education institutions is found in their differences, not their similarities. Schools are public and private, large and small, elite and open enrollment, tuition dependent and well endowed, liberal arts oriented and vocational. The challenges facing America’s colleges and universities will affect the diverse parts of this system in very different ways. Generalizing about this system can be very dangerous.Less
The American higher education system consists of over 4,700 institutions educating over twenty-one million students. The most striking feature of this system is its diversity. There is no “typical college.” Much of the story about the future of America’s four-year higher education institutions is found in their differences, not their similarities. Schools are public and private, large and small, elite and open enrollment, tuition dependent and well endowed, liberal arts oriented and vocational. The challenges facing America’s colleges and universities will affect the diverse parts of this system in very different ways. Generalizing about this system can be very dangerous.
