Page 277 - Crisis in Higher Education

248 • Crisis in Higher Education

campuses were established decades ago and seem to have outlived their
usefulness. In many cases, they are like community colleges where stu-
dents can take general education courses, completing part of their degree
before moving to the main campus. With online learning opportunities,
phasing out branch campuses may make sense. This would eliminate facil-
ity costs and reduce administrative overhead.

11.6.3 Outsourcing Nonstrategic Services
This may be the most important and pervasive structural change.
Universities know little about organizing and managing on-campus hous-
ing, food services, parking services, and other activities, which universi-
ties need but are not directly related to their mission. Outsourcing these
activities should reduce administrative and operating costs and provide
students with better services. Table 11.3 has a list of candidates, which are
discussed in the following sections.

11.6.3.1 Outsourcing Athletic Programs
The first item in Table 11.3, athletics, is very controversial. Even though
athletics are not required, alumni, donors, presidents, students, and oth-
ers love athletics. But athletics must not consume tuition dollars or other
funds that support instruction, research, learning materials, housing,
or other services. Tuition should pay for an education. It seems grossly
unfair to students, who are struggling to learn, working part-time to earn
money, and taking on student loans, to balance the athletic budget on
their backs. For public universities, state government could take legisla-
tive action to make this happen. The federal government seems to have
every right to mandate that institutions that enroll students who receive
federal funds offer clear evidence that tuition and other funds are not
diverted to athletics.
Athletics has a separate and identifiable revenue stream. It has no direct
impact on the mission of universities, but it may have an impact of fun-
draising. Outsourcing provides a firewall between athletics and the uni-
versity, and it requires athletics to live within its means. Athletics would
build and maintain facilities, pay it coaches, buy uniforms, and cover
all expenses. If athletics wants to offer scholarships, it must provide the
university with funds to cover tuition, fees, room, and board. If athletics
loses money, it would have to finance those loses, restructure, and repay