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Government’s Role in Higher Education  •  195



             expect better outcomes. The following list examines how this element of
             the solution impacts the root causes, which are discussed in Chapter 4:


               1. Lack of understanding—Who is the customer? (root cause 1):
                 Governments should present themselves to institutions of higher
                 learning as customers and demand that they get better value for
                 their investment.
               2. Declining  state  support  for  public  universities  (root  cause  2):
                 Governments can change their level of subsidies in response to the
                 actions and performance of institutions.
               3. Rise of the ruling class: Administration (root cause 3): Administrative
                 costs may be the single biggest reason why higher education costs
                 have increases. Governments can respond by modifying subsidies to
                 gain the changes in staffing that they deem appropriate.
               4. Limited productivity improvements for universities (root cause 4):
                 Productivity of administrators and faculty is relevant. Governments
                 should encourage investments in technology to enhance productiv-
                 ity and reduce administrative and instructional costs.
               5. Rapidly growing costs for books and supplies (root cause 5):
                 Universities can help publishers design more effective and less
                 expensive learning materials. Governments provide the incentive.
               6. Funding finesse—Mixing fees and tuition (root cause 6):
                 Governments can require public colleges and universities to use
                 student fees for nonacademic purposes only, make fees optional
                 for students, and prohibit comingling of tuition dollars and fees.
               7.  Eroding standards (root cause 8): Governments, potential employers,
                 and accreditation agencies want to maintain learning content and
                 performance standards so graduates are better prepared and have
                 more successful careers.





             9.8  SUMMARY OF RECOMMENDATIONS

             Following is a list of the key recommendations that comprise this element
             of the solution.

               1. Governments’ role in higher education should be somewhere in the
                  middle between the extreme positions of making high education
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