Page 104 - Crisis in Higher Education

76 • Crisis in Higher Education

to address this “underfunding” by taking proactive steps to support and
require public universities to seek ways to lower costs for tuition, fees, and
learning materials dramatically.
The following bullet points examine the impact of root cause 2,
“Declining State Support for Public Universities,” on the underlying
problems listed in Table 4.3.

• Problem 1. Cost shifts from states to students, parents, other family
members, friends, and the federal government: As states held the line
on subsidies, universities raised tuition and fees to keep up with their
exploding cost structure. Students and their supporters pay higher
tuition and fees, and the federal government provides more grants
and loans. The net effects are (1) a selective state tax increase for
1
students and their supporters and (2) a cost transfer from states to
the federal government. Practically speaking, it should be possible to
reduce administrative costs and charge less for tuition and fees.
• Problem 2. Quality decreases: Non-value-added spending limits the
funds available to invest in improving student outcomes such as creat-
ing new programs and hiring more faculty members.
• Problem 3. Access decreases: As tuition and fees increase, access
declines.
• Problem 4. Graduation rate decreases: As tuition and fees increase,
the graduation rate decreases.
• Problem 5. Completion time increases: As tuition and fees increase,
completion time increases because anything that increases cost
means students have to work more and save more.
• Problem 6. Job placement decreases: Fewer resources, whether caused
by low state funding or excessive spending on administration, limit
the amount that can be invested in working with organization so
students have better job opportunities.

4.5 HOW THE RISE OF THE RULING CLASS—
ADMINISTRATORS (ROOT CAUSE 3)—
AFFECTS UNDERLYING PROBLEMS

For centuries the distinctions between administrators and tenured fac-
ulty were minimal. Most administrators were tenured faculty who took