A radical proposal for funding public colleges
The current system for supporting and overseeing public colleges and universities is out of date. Better to give the money directly to students in the form of scholarships. And get the legislature out of the business of running universities.
WWU
Public higher education is an engine of prosperity for the nation, the state of Washington, and most importantly for the individual young people of the state. Too bad we have the wrong model for funding it.
The historic funding model hands resources to public colleges and universities, with numerous strings attached. In periods in which few students attended college, when public resources were not overly constrained, and when the cost of providing an education was relatively low, this model worked well. Because not one of these three conditions is true today and none is likely to be true in the near future, this traditional funding model is broken. It's time for a disruptive new idea.
Public higher education traditionally serves three purposes: education, research, and generating jobs. The state’s interest in the first of these, education, far outweighs the other two. In light of current conditions, I'd like to propose a radical but simple restructuring of higher education finance to redirect limited resources toward the most important charge: students. Here are the components of the proposal:
1. The four-year college and university portion of the higher education budget of the state should be eliminated completely, and the funds released would be used in their entirety to provide scholarships to Washington students, to be used at any four-year Washington public college or university of their choice.
2. The four four-year colleges and two research universities would continue to be public institutions with governing boards appointed by the governor and with graduate program approval remaining with the Higher Education Coordinating (HEC) Board, but most other supervision would be eliminated. Specifically, tuition and scholarship policies would be entirely in the hands of each institution.
One reason for this proposal is that, in a time of limited resources, students are best served by putting choices in the hands of students and their families. Competition for students will help generate innovation and efficiency. While scholarship levels may differ among students, reflecting academic merit and financial need, scholarships would not differ according to the institution attended. (The student gets the grant, not the college.) More expensive institutions, like the University of Washington, where the state scholarships would not fully cover costs, would have to compete by providing a more desirable product and additional sources of scholarship support.
The proposal reflects a philosophy in which the principal interest of the public lies in educating its students rather than in supporting the institutions of higher education as such. Both the funds and the expertise of the state government are best directed to those students directly, rather than in managing the internal arrangements of the institutions or in refereeing among them.The quid pro quo for adopting this new policy would be to allow the public colleges to set tuition themselves, as private colleges do. Further, the colleges might choose to develop a very different structure of charges, which could include differential tuition for different majors.
If this proposal seems radical, unprecedented, and unworkable, remember that it's long been tested by private institutions. What’s added to the mix is the public subsidy for students.
In addition to deregulating tuition, this model would also involve a major loosening of constraints and regulations within higher education generally. Institutions would be empowered to manage their own enterprises as publicly-supported businesses. They would be free (and encouraged) to use innovative techniques in deciding on the time, place, and manner for delivering educational offerings.
Central control and planning at the state level are poorly serving our citizens. Perhaps this more market-based approach will provide a better model for the coming decades.
Another welcome change that this model would prompt concerns the relationship of the institutions to the state. No longer would institutions individually lobby the Legislature for what they view as their fair share of the state’s operating budget. Instead, their lobbying would be focused on growing the whole pie for higher education: they would lobbying with one another rather than against one another.
The Legislature itself would decide on how much money to allocate annually to each qualifying student. The public's perception would be altered, as the higher education budget would explicitly be all about students. For example, in tight budget times it might be harder to make deep cuts in higher education because of the promise made to students once they have entered a college and university that they would be allowed to continue with their education and that the rug won’t be pulled out from under them.
It is possible that this approach over time would lead to greater stability and possibly increased public pressure for expanded support of higher education, as the number of students supported became an explicit part of the public debate.Today, Washington hands about two-thirds of general-fund, higher-education spending directly to the four-year institutions, giving the remaining one-third out in the form of student financial aid. At UW and WSU, the tuition and fees are much larger than state support. At the other four-year schools, student payments and state support are roughly equal.
How should state support be given out? While I’d like to see enough financial aid to enable every qualified student to attend the school of their choice, Washington isn’t going to do that any time soon. To start things off, let’s split the current money into three pots. Pot 1 provides a basic scholarship to every Washington state high school grad who attends a public, four-year, Washington school. Pot 2 is given out on the basis of financial need. The third pot offers merit scholarships to the best performing Washington students. We will, of course, have to have a merry argument on just how large each pot should be. (Note that this proposal does not affect community colleges.)
Will this “solve” the higher education funding crisis? No, because a solution requires more money as well as a wiser allocation method. But when money is short, that’s the most important time to see that what funds we do have are directed to those with the greatest interest in the wise spending of limited money: the students and their families.
Note: The author teaches economics at the University of Washington but he most definitely does not speak for the University.
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Comments:
Posted Fri, Nov 26, 8:46 a.m. Inappropriate
This is a variation of the "school voucher" idea. It should really be called "school coupons." You know all about coupons right? They give you a discount on an item you want to buy, in this case a college education.
So here, instead of subsidizing students at the UofW, the state would give every student a coupon to go to say Pacific Lutheran U., or Seattle U, or Whitman, private colleges. And the current public U's UW, Central, Wazzu et.al, would raise their tuition to private school levels. Now poor kids who don't qualify for a full tuition scholarship would even with a coupon be priced out of higher education.
This idea sucks.
My idea, is that we give kids in Washington a full scholarship, same as we do for high school. That way we have a fully educated workforce that is not in debt to private banks for student loans. Like civilized countries in Europe, notably Finland et.al. With a proviso of you have to work in Washington for at least 5 years after graduation.
Admission is still limited by grades an test scores, but at least poor smart kids would get the most education they can.
Posted Fri, Nov 26, 12:14 p.m. Inappropriate
To make the idea "suck" less the grant/coupon should be directed to state schools only. The state must offer more 4-year degrees through community colleges. The state could then allow the state universities to raise its prices.
There is an artificial competition/scarcity for high demand degrees. It is a shame and a sham to restrict the number of institutions that can offer 4-year nursing degrees.
Posted Fri, Nov 26, 12:47 p.m. Inappropriate
I think this is the first time I've heard such an idea, so I don't have an opinion yet, but I do see a potential problem.
Washington, like most (all?) other states, differentiates between in-state and out-of-state tuition. The reason is Washington residents are more likely to stay in the state after graduating, and so providing lower tuition to Washington residents is good for the state's economy. Under this proposal, however, it seems that the differential would be so great as to price non-Washingtonians out of our universities. This would make it harder for Washington schools to specialize, which could crimp industries such as the software industry which need very specialized education in order to prosper.
Is my concern well founded? Does the proposal address my concern in a way that I'm not seeing?
Posted Fri, Nov 26, 1:32 p.m. Inappropriate
Will this “solve” the higher education funding crisis? No, because this doesn't address the expense side of the equation. Classified employees get automatic 5% "step" increases every 12 months, these having no relation to performance, until they reach the top of their pay grades. This is in addition to any COLA the State Legislature may grant, which has been little of late. Still, this beats inflation. The "step" increase needs to be replaced with a salary increase pool that is based on gains in revenue sources and meted out based on performance, with only the highest performers reaching the highest echelons of their salary range. Second, salary surveys need to include private sector employers for generic, non-specialized positions and factor in benefits vs. educational institutions in other states with widely-different funding. Third, managers' salaries must be limited to no more than 15% over the highest staff they supervise. There are presently wide gaps that should be closed. In short, salaries need to be better controlled in educational employment, which would free up money for equipment and other supporting needs. There also should be required reporting of building usage, which I think would reveal that mid-days there is a fair amount of capacity (vs. constructing new buildings), but is generally not revealed.
Posted Fri, Nov 26, 1:39 p.m. Inappropriate
If you have even a normally questioning intellect, the whole article dissolves into a mass of unproven assertions, wrong conclusions, and old chestnuts, some of which, predictably, are rotten.
For example, the article starts with the assertion that the main interest of the state is the education of students. In reality, of course, the great agricultural and mechanical universities of the land grant system were intended to provide solutions- better grain, better bridges, better aeronautics- and the solutions were to the problems of building strong agriculture and industries. The two-year schools of today are meant to supply workers for industries where a little more than a high-school diploma is needed. The real dogma of American education is that the student is well-served if they can get a job in their field.
Then we go on to the rather dubious assertion that students and their families will make the best decisions about higher ed. Aside from claiming that competition will make schools more efficient etc etc (you know the drill) no reason is offered for thinking incoming students know more about providing college educations than the people who have been doing it for decades. The choice, in any case, is one that students and parents can already make by choosing among existing state schools.
So this is a plan to, first of all, whittle the U of W down to size, and then to deliver the knock-out blow with what happens to funding for the tuition scholarships. Believe it, every year those scholarships will get smaller. There will always be a reason to trim that budget a little, or at least not increase it to track inflation.
And nobody is going to fall on their sword to protect the funding for the 25% or even 50% of high-school grads who go to college- many of whom have parents who could pay the full bill if they wanted to. Students could not work hard enough to justify in the public eye the incredible munificence of a full scholarship, and one photo of a student napping under a tree in the spring might be enough to bring the whole program down.
One thing Startz is ignoring is that when MacDonalds came to town with their golden arches, they swept the marketplace, but not with better food. And Startz is performing the same function here, pretending to be a highly qualified professor, but serving up the same old burger you've seen so often before. It's enough to shake your faith in higher education.
Posted Fri, Nov 26, 2:43 p.m. Inappropriate
"one photo of a student napping under a tree in the spring might be enough to bring the whole program down."
Then why are high schools still open? We see photos of kids at high schools out playing sports in the field, napping etc. just google "high school students napping tree" and there are tons of photos.
Even if only 25% of the eligible people went to college on a full scholarship, if in some way they were required to "pay back in time" it would still be worth it. As it is now we are creating a class of peonage with ridiculous amounts of debt. If we want those parents who could pay to pay, we can always institute an income tax.
But the college coupon idea is as bad as the high school coupon idea. It's usually floated by folks who want the state to fund religious schools.
Posted Fri, Nov 26, 3:56 p.m. Inappropriate
Another voucher comparison: Section 8 vouchers instead of the feds building low-income housing. Except for very limited voucher allotments for existing federal housing, vouchers require that poor people go out into the marketplace to find housing. You can guess how well that's worked out.
Without governmental funding of higher education, schools have no sticks to do anything consumer-oriented, but plenty of carrots to raise tuition/cherry-pick students/take funding from corporations to offer only corporate-approved courses.
What a great idea. The term "deregulated" in the article causes the reader to suspect--just suspect--that the author is a libertarian.
Posted Fri, Nov 26, 4:18 p.m. Inappropriate
Privatizing public colleges would be a terrible direction, a scam to enable the wealthiest among us to get our public assets, turn a profit from recurring state revenue and then choose what may or may not be taught. Ugh.
I'm not against free market options to compete against better structures, but obviously an all-free (or would it be free-for-all?) market doesn't work for many lines of human endeavor that serve the public interest. One can envision diploma-mill "colleges" offering kick backs to "applicants" and our prestigious state universities getting sold off to the Rupert Murdochs of the world, a vision for a banana republic. Drown this idea in the bathtub please.
We'd get higher-quality results by imagining what we actually want as a society and look around for examples of what actually works. A fine example of what we should aspire to is provided by the happiest country in the world-- Denmark -- where the public pays for education and health care as basic human services, and just look at their quality of life: http://news.bbc.co.uk/2/hi/5224306.stm
Posted Sat, Nov 27, 7:54 a.m. Inappropriate
Let me get this straight--you are going to give 18 year old kids just out of high school the power through the voucher system to decide which state university gets funds or doesn't get funds. Do you really think that they have the knowledge to make these decisions at their age?
This is another one of the free-market fundamentalist theories that sounds good in theory but in reality falls apart.
Didn't we find out during the last 10-years that the Chicago school version of economics which predisposes that consumers and sellers have perfect knowledge to be inherently flawed?
Posted Sat, Nov 27, 11:16 a.m. Inappropriate
In the event that you are interested there are good resources on this web site:
http://www.hecb.wa.gov/index.asp
2009-2010 statistics of tuition indicate the following share of costs between tuition and state support:
University of Washington
$10,993 per year (62% tuition & fees; 38% state funded)
Washington State University
$8,715 per year (77% tuition & fees; 23% state funded)
Evergreen State College
$11,965 per year (39% tuition & fees; 61% state funded)
Central Washington
$10,153 per year (46% tuition & fees; 54% state funded)
Eastern Washington
$9,789 per year (47% tuition & fees; 53% state funded)
Community & Technical Colleges
$6,706 per year (35% tuition & fees; 65% state funded)
[Reference: Key Facts About Higher Education in Washington, 2009-2010
http://www.hecb.wa.gov/keyfacts/index.asp]
There are some good comparisons to other states at this site.
Posted Sun, Nov 28, 7:56 p.m. Inappropriate
And here is why this "proposal" is DOA.
http://seattletimes.nwsource.com/html/editorials/2013532898_edit29loans.html
Posted Mon, Nov 29, 6:03 a.m. Inappropriate
Seattle Times ran an interesting editorial about for-profit higher education:
"For an education sector that has grown tenfold in the last decade, lax oversight has fostered a system of high tuition costs and low graduation rates."
http://seattletimes.nwsource.com/html/editorials/2013532898_edit29loans.html
Posted Tue, Nov 30, 9:59 a.m. Inappropriate
We should predicate college funding on a race-based social-justice paradigm.
Set tuition.
White students pay 150% of the set price, receive no financial aid.
Asian students pay 100% of the set price, all but Chinese and Japanese eligible for financial aid.
African Americans pay 75% of the set price, eligible for financial aid.
Hispanics pay 50% of the set price, eligible for financial aid.
Illegal, undocumented immjigrants (and their children) pay nothing, eligible for financial aid AND other social-assistances.
That probably doesn't qualify as "radical", but there it is.
Posted Wed, Dec 8, 10:44 p.m. Inappropriate
The educational process has been the subject of much comment by academics and writers. Their observations range from praise to cynicism, mostly the latter. Education is an easy target for criticism because its stated aims are often so nobly ambitious that they have little chance of being realized. It should give us pause that so many people who have made their mark in the world of ideas,
The job sector has not been at its best for a while. One of the hardest hit groups, believe it or not, is current university graduates. The joblessness rate for current grads is 50 percent over the national average. The forthcoming graduate students has less of a pay check to look toward than they would probably like.
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