Another College Thread...regarding the business of School

[deadheadskier]

The student loan thread got me thinking about this article I had read. Granted 99% of th time I CAN'T STAND Glenn Beck, but the man has some good points in this article.

http://www.cnn.com/2008/US/05/14/beck.collegeendowment/index.html

Pretty bull chit scene if you ask me. Harvard makes a 23% tax free return on their endowment, 1% of their endowment would be enough to pay for every student to go there FOR FREE. Considering how difficult it is for many people to afford college, I do think endowments should be taxed a fair rate and those earnings re-distributed to helping kids go to school. I wonder what the percentage of students is that make into the Harvard's of the world just because of daddy's spot on the Free Mason board. The higher education system in this country is fairly corrupt and failing if you ask me. An overall is needed for us as a nation to continue to compete and prosper in the global economy.

 

[riverc0il]

You can't really generalize what is happening at the top colleges and universities compared to the lesser known and locally known names. Also, public education isn't doing so hot right now and really struggling and making tough choices. Harder at the bargaining table with contracts, more part time faculty instead of full time, really striving to ensure classes don't run unless they meet minimum enrollments while also balancing student needs, etc. Lots of issues. Higher costs of fuel and energy are hitting hard too. Student fees at public schools aren't going up because of profits but rather because costs are going through the roof. Definitely different at top name places like Harvard but this is not the story for all colleges and universities. I work on a campus and while I am not part of administration, I see the daily crunch and the uncomfortable decisions that have to be made knowing how heavily they weigh on our students.

 

[deadheadskier]

You can't really generalize what is happening at the top colleges and universities compared to the lesser known and locally known names. Also, public education isn't doing so hot right now and really struggling and making tough choices. Harder at the bargaining table with contracts, more part time faculty instead of full time, really striving to ensure classes don't run unless they meet minimum enrollments while also balancing student needs, etc. Lots of issues. Higher costs of fuel and energy are hitting hard too. Student fees at public schools aren't going up because of profits but rather because costs are going through the roof. Definitely different at top name places like Harvard but this is not the story for all colleges and universities. I work on a campus and while I am not part of administration, I see the daily crunch and the uncomfortable decisions that have to be made knowing how heavily they weigh on our students.

I think you're exactly right. And I think that's a big part of Glenn's point. As much of a conservative as he is, he's suggesting more socialistic tax policies regarding higher education. I'm sure a similar situation plays out in New Hampshire where Dartmouth is making massive tax free profits on their endowments, yet the smaller schools like yours struggle. The playing field needs to be leveled some, so that all levels of education, not just the Ivy's are able to thrive.

 

[Warp Daddy]

Steve's analysis is right on target ! Having spent 30 plus yrs in Public higher education this struggle was and remains very real .

Endowments are oftenVERY modest inteh public sector .Our's was less than 10 million ,.Tuition increases were usually authorized by teh Legislature about every 3-5 yrs while cost escalation was managed by prudent oversight and good planning but that can take one just so far with runaway energy costs . Moreover public sector employment mix has changed dramatically since i retired with a great % of adjunct and part time faculty and some "contracted " staff

So teh do more with less syndrome has been a real factor in public higher education for several years . There were times in 90's when i had to lay off good people as will surely happen in most public colleges this year .

 

[riverc0il]

But Dartmouth does incredible work and their hospital and medical school surely make the tax breaks worth it for the region. You gotta balance the good stuff and community contributions I think.

What irks me about funding and the higher education sector is how certain men's sport topple the playing field. The top athletic schools in the country are essentially fielding semi-pro teams and getting paid insanely well for good recruiting. If I was going to focus on any aspect of college reform, I would love to see college sports, specifically the top revenue driving programs, put under the microscope and more closely examined.

One of the big winners for Universities and Colleges is no property taxes. Lots of sprawling campuses that cost cities lots of expense but don't contribute directly to the bottom line (though contribute indirectly through revenues via job creation and cultural development that attracts visitors, parents, alumni, etc.).

Blah blah blah. Suffice to say (and it took me a little while to really understand how much this is true), even public institutions are being run very much like businesses. Except public institutions are in many ways handicapped due to government bureaucracy. Nothing against public higher education, I am a huge supporter. But just saying that private reaps more benefits and has some advantages, IMO. Tax breaks for any for profit institution seem suspect to me.