Many participants on this blog will welcome a provision Governor Youngkin included in his proposed budget bill that has received little notice in the press: a cap on college tuition and fees for Virginia students. The provision would impose an absolute cap for FY 2026 and limit increases in succeeding years to 2.5 percent or the inflation rate, whichever is lower.
One Way to Get Higher Ed to Cut Expenses
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10 responses to “One Way to Get Higher Ed to Cut Expenses”
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Or, spinoff the football program.
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Eliminate all the DIE positions…..would free up millions for scholarships
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One place for colleges and universities to start slimming down is the elimination of entire trendy degree programs that have no serious academic substance and result in a near-worthless degree, little economic upside, and a mountain of debt.
I personally think these programs are the real scandal in higher education…institutional fraud at its worst….producing graduates who think calculus is the name of a rock band.
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I agree this is a good start. However, the boards of visitors still have to drastically reduce administrative overhead expenses.
For example, this move would not change the fact that UVA is the most expensive state university in the nation. UNC, which is now ranked higher by US News and World Report, is $20K less expensive for out of state students. 35% of UVA students are out of state, which has always been a defining competitive edge vis-a-vis its other top rated state universities, giving UVA more of a “private college” feel.
That is not a sustainable economic model. You don’t “beat the competition” by pricing your product disproportionately higher.
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Colleges must start their planning process with the goal of providing an excellent education to their students. Everything else is fluff.
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What's funny here is that no one is pointing to private-sector for-profit higher ed as THE model to aspire to!
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If one wants to cut expenses, cut expenses and reduce the mandate of universities. Cutting their revenue is a way to cause problems while avoiding the blame.
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I am always amazed at how hard this seems to be for smart (and educated) people to understand.
Demand, supply, and price. As the price for a college education rises faster than inflation (or, better yet, wage growth), it becomes less affordable. As it becomes less affordable, substitution comes into play. How many substitutes are available? How elastic is the demand? Historically, the demand for college education has been very inelastic. Mom and Dad made do with less because Junior needed to go to college. However, almost no demand is infinitely inelastic. We're seeing the impact of college demand elasticity now. People are deciding not to go to college. Or going to two year colleges. Many four year colleges are financially struggling. Employers both fear a lack of supply and are recognizing the limits in the value of a college education. They are reclassifying jobs that once required a college education to no longer requiring that education.
Higher education in the United States is on the brink of serious turmoil.
The supply of higher education in the United States was set at a time when prices were much lower and few substitutes existed.
Absent serious price control by colleges and universities, there is no chance that higher education avoids a major shakeout.
Every cost should be scrutinized. Any costs incurred other than for the provision of education should be challenged. Many sacred oxes will be gored. Sports is among the very first.
As for Younkin's plan, it reminds me of the old saw – When you realize you're in a hole, the first job is to stop digging.
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The alumni director from my alma mater countered my objection to the sports program by saying that a successful team increases applications for admission. The greater the demand, the more selective the school can be (and the higher the tuition?).
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A few years ago, a study revealed that most of the higher costs are due to the construction of recreational and sports facilities.
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