A New Economic Model for Publics: Convert to private status?

College Confidential Community
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<p>All over the USA, state economies have tanked with negative impacts on state budgets. To address the shortfalls, many state legislatures are reducing outlays to their state universities, some so much so that the level of state funding is in single digits as a percentage of a college’s overall budget. Given this, should these colleges still be obliged to remain as public universities, charging different prices for IS/OOS students and, in many cases, having an obligation (real or implied) to enroll X percent of IS students? Should they remain beholden to the state politicians? </p>

<p>One solution would be to privatize and charge one blended tuition rate for all students (IS and OOS). For many colleges, this could dramatically increase revenue and provide needed funds for things like need-based financial aid for all students, increased faculty hiring that would permit smaller class sizes, more money for construction of new facilities, etc. </p>

<p>Using current levels of IS/OOS students and recent levels of IS/OOS Tuition & Fee cost, I compared revenue levels if all students were charged at 60% of the current OOS T&F which I think would be a highly competitive cost vs the private college universe. Below are the results for publics ranked in the USNWR Top 50 national universities. </p>

<p>*Note: This is meant as a conversation starter. The level of state funding varies as you move around the USA, but the trend of reducing state outlays to higher education is ubiquitous. All figures are based on full payment of all costs by all students. Obviously this is not reality as many will qualify for need-based and/or merit aid. </p>

<p>Change , Current Revenue , Proposed Revenue at 60% of OOS T&F , School</p>

<p>$204,837,289 , $248,212,704 , $453,049,993 , UC BERKELEY
$223,169,352 , $252,838,723 , $476,008,075 , UCLA
$47,023,136 , $243,784,240 , $290,807,376 , U VIRGINIA
$24,117,233 , $509,747,539 , $533,864,772 , U MICHIGAN
$91,403,007 , $147,967,671 , $239,370,678 , U N CAROLINA
$7,147,296 , $100,230,624 , $107,377,920 , WILLIAM & MARY
$39,008,514 , $161,159,687 , $200,168,201 , GEORGIA TECH
$203,399,915 , $212,989,430 , $416,389,345 , UC SAN DIEGO
$93,970,760 , $391,534,991 , $485,505,751 , U ILLINOIS
$24,046,500 , $386,835,000 , $410,881,500 , U WISCONSIN
$218,524,475 , $237,355,204 , $455,879,679 , UC DAVIS
$160,820,795 , $187,441,890 , $348,262,685 , UC S BARBARA
$144,844,898 , $284,945,121 , $429,790,019 , U WASHINGTON
$174,807,380 , $207,407,687 , $382,215,067 , UC IRVINE
$(65,753,429) , $657,135,418 , $591,381,989 , PENN STATE
$315,301,498 , $178,393,247 , $493,694,746 , U FLORIDA
$320,169,485 , $366,292,555 , $686,462,040 , U TEXAS</p>

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<p>Now what would be your reason for this. I have an idea that is better. How about we start cutting saleries of teachers, how about we start eliminating their pensions. Every other person in the united states has figure out where to put their money for retirement. teachers should save theirs to. Why should we have to pay for them to retire. teachers should start getting paid for the amount of time they spend on the job.</p>

<p>Your idea is just another wy to get the citizens to pay more, while the teachers and the corrupt administrations keep taking from us. I don’t know about you but i’m tired of footing the bill.</p>

<p>I’m not just talking about college teachers, I’m talking all teachers, everywhere. They work 8 months out of the year and think they deserve the world.</p>

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<p>Going private in toto would mean having to raise tuition by at least triple to offset the lost tax revenues they get from their state houses, making a college education only for the elite…the absurdity of that situation is readily apparent as most land grant and state flagship schools were started hundreds of years ago to be a PUBLIC education, open to anyone, not just the wealthy. </p>

<p>Of course, there are way too many degree programs and way too many professors…they are bloated institutions…and they spend way too much on sports. </p>

<p>Instead of raising tuition they should limit coaching salaries…some coaches are earning 5 million a year and that is ABSURD. So we can watch alma mater on television and feel proud because some kid goes to school for free (if he attends any classes of any substance which is doubtful) and then bolt for the NBA or NFL? Come on.</p>

<p>I love sports, particularly college sports, but its gotten completely out of hand.</p>

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<p>At least the coach puts a product on the field that creates revenue, and alot of it.</p>

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<p>It’s an interesting idea … I wouldn’t expect students or faculties to really go along with it, though. When the UC Regents raised fees last year, most of my teachers had something to say about how the UC system is being “privatized.” I thought it was funny when a professor of mine described it in a way that made it seem like Halliburton or something was going to be taking over, but the “private” entities are students who pay to go to UC campuses.</p>

<p>Ghostbuster makes a good point about how subsidized most public university students’ educations are, and after running the numbers at the site I’ve linked to below, it looks like somewhere between two to three times is about right for many universities. ([Here’s</a> a PDF of the site’s report, since it can’t be linked to directly.](<a href=“2shared.com - free file sharing and storage”>2shared.com - free file sharing and storage)) Maybe it’s because I don’t go to a school with a huge sports presence (compared to UCLA, Cal, Davis, etc.), but I don’t think most schools’ funding issues can be helped that much by messing with their athletics departments. I’ve always gotten the impression that they spend a lot of money, but bring in a lot of money too - along with other tangible and intangible benefits.</p>

<p>I recently read about this website where you can chart data about the revenue and spending of many universities - it’s pretty interesting: [Delta</a> Project on Postsecondary Education Costs, Productivity, and Accountability](<a href=“http://www.tcs-online.org/Reports/Report.aspx]Delta”>http://www.tcs-online.org/Reports/Report.aspx)</p>