Advertisement

Advertisement

News, Views and Careers for All of Higher Education

Ensuring That States Support Higher Ed

As summer reaches its mid-point, selected high ranking U.S. House and Senate members continue to work on finalizing massive legislation to renew the Higher Education Act, which has already gone through seven extensions this year. One of the few primary issues still being debated is the “State Commitment to Affordable College Education Amendment,” commonly known as the “Maintenance of Effort” provision. The provision seeks to hold states accountable for maintaining certain levels of tax support for higher education, and I believe it is essential for the future of public higher education.

The maintenance of effort provision, which was advanced by Rep. George Miller of California, Rep. John Tierney of Massachusetts and supported by members of both parties on the U.S. House Committee on Education and Labor, is premised on the fact that the most significant factor impacting the rapidly rising cost of college education for nearly 80 percent of the higher education population has been the relentless decline in commitment on the part of most state governments to maintain requisite levels of public funding. The result of this long-term decreasing commitment has been that in many states, as state appropriations have dwindled, public university tuition and fees have skyrocketed. This trend has effectively shifted the burden of funding higher education from the general public to the student.

What Representatives Miller, Tierney and other bipartisan members of the House Education and Labor Committee have figured out is that billions in new student aid dollars will have little effect on the expansion of educational opportunity if state legislatures continue to consistently reduce their fiscal commitment to higher education. Essentially, MOE is a first step in holding states accountable for retaining given levels of appropriations for their own students. The perversity of the present system is that as state legislatures lower their fiscal effort or do not provide adequate support for increasing student populations, tuitions and fees subsequently rise, and as a result most federal student aid programs are tapped at higher levels further indebting ever more students and with greater average debt.

Many state officials have become savvy about the process. In fact, I was told by a very high ranking member of the state legislature in Kentucky a couple of years ago that he did not need to provide additional tax support for public universities since the institutions themselves had the ability to increase their own student tuition and acquire the funds through the federal tuition-based aid programs. This “supplanting” of state support with federal tuition-based program support occurs more readily when state economies are bad or simply when legislators, by whim or fancy, refuse to provide the appropriate levels of public tax support, knowing full well that public universities will in response raise student tuition and fees to provide essential funds.

As a consequence, additional fiscal burdens are placed directly on students and indirectly on the federal government to offset what states fail to provide. This has been a pattern over the last three decades as increases in state legislative appropriations have been unreliable and state institutions are sent scrambling for needed revenues. The maintenance of effort provision has the potential to place pressure, through the secretary of education, to better stabilize state appropriations by means of federal disincentives through the use of Leveraging Educational Assistance Program funds and other programs, or incentives when new federal funds are made available in the future.

Supporters of the MOE provision include the American Association of State Colleges and Universities, which represents the majority of public universities nationwide, and numerous national student organizations. Opposition to the inclusion of the MOE Amendment is spearheaded by the National Governors Association and Council of State Governments, who have the obvious interest in seeing that billions in funding should continue to flow freely without strings. This no-strings approach is, of course, extremely attractive to states that continue to reduce their commitment to public higher education by shifting the financial responsibility away from themselves.

Strong opposition also resonates from the “states’ rights” element that insists that the federal government should not have such fiscal leverage over states. Leading this charge is Sen. Lamar Alexander of Tennessee, who as U.S. secretary of education favored the elimination of the Department of Education and represents a state that is constantly last, or near last, among the 50 states in its tax effort to support public education at virtually all levels.

Legislators, such as Senator Alexander, who argue that states should receive federal funding without a corresponding fiscal commitment to higher education actually perceive that this anti-state tax effort strategy is good public policy. Unfortunately, in this system, the students are the ultimate losers as college affordability declines and federal direct student aid dollars are increasingly rendered less effective.

Many opponents of this amendment also insist that the MOE provision is precedent setting and represents a new dimension of federal encroachment in state sovereignty. In fact, concerns about the federal government holding states fiscally accountable is not new and has been a staple of education and welfare legislation for many decades. In 1965 the Elementary and Secondary Education Act carried with it a maintenance of effort provision that forbade states to supplant their own funding with federal dollars. Over the last four decades, these supplanting provisions have been upheld and enforced by federal courts on numerous occasions. Medicaid, and other federal funding measures operate in similar fashion making it difficult for state legislatures to cut funding without federal fiscal consequences.

In summary, maintenance of effort is an essential component for ensuring that states are held accountable for their funding of higher education. This amendment, if used effectively by blending both fiscal disincentives and incentives, will make states think twice before cutting higher education appropriations and should have an attendant effect of better stabilizing state higher education finding. The true winners will be, of course, the students, but in the broader context the spillover beneficiaries from state fiscal stabilization and enhancements to higher education will be the entire social and economic system.

F. King Alexander is president of California State University at Long Beach.

Got something to say?


Want it on paper? Print this page.
Know someone who’d be interested? Forward this story.
Want to stay informed? Sign up for free daily news e-mail.

Advertisement

Comments

Bang for the Buck

As a parent I would like to comment on the ambiguity of what a good college education means. When I log on to College Board and try and discern the differences between the colleges and universities, there are no statistics about the value one gets for their money. I would like to see a comparison of the average debt of the average graduate in each of the majors offered by each college or university to that of the salary and job that same student gets and how long it takes for them to pay off their college loans. I would like to see what that tuition actually costs when the loans and interest and time it takes to pay them off are factually taken into account.

I would also like to see a discussion about who actually holds that debt? Is it the parents of the students or the actual students themselves? All this talk of how it is the student who is the winner or the loser is an emotional smokescreen which obscures the lack of statistics and figures pertaining to the real value of the education the student/parent is buying. There seems to be a lot of hand wringing about assumptions and you know what they say about what it means to assume.

If colleges and universities want the states, federal government and most of all the parents to keep funding their students’ education, maybe they should start being more forthcoming on what kind of bang for the buck their “customers” are getting.

ccb, at 7:30 am EDT on July 18, 2008

Ensuring fairness

” .. students are the ultimate losers as college affordability declines and federal direct student aid dollars are increasingly rendered less effective ..”

Except that substantial questions have been raised about the authentic value of certain college majors. That high-demand areas (e.g., engineering, health care) have many funding sources. That 56.4% of incoming freshman do not graduate within six years. That according to Greene (U-Ark), everyone capable of doing college-level work, either is, or has gone to, college. That a majority of Americans decide that a four-year college degree is not for them.

Finally — why should that majority of Americans subsidize future millionaire lawyers, heart surgeons, and CEOs? Where are the objective, third-party studies — not paid for by the higher-ed lobby — that validate higher-ed funding?

L.L., at 9:10 am EDT on July 18, 2008

Just Big Education types again trying to rip off citizens by forcing them to pay for their lifestyle with tax money. Let the market decide if their “education” has any value.

mike, at 9:40 am EDT on July 18, 2008

L.L., if you believe that people should have to pay 100% of the cost of their college educations, you believe that only those in the top 20% of the American income/wealth disparity should have access to schooling.

But more importantly—if you don’t have evidence that college is worth it, you don’t have evidence that high school is, either. College graduates make more money than high school graduates, just as high school graduates earn more money than dropouts. There are similar findings in terms of health outcomes and voting behavior/political knowledge. If you believe these findings, you ought to believe in government funding for higher ed. If not—well, high school dropouts can get jobs cleaning the streets (if all the jobs haven’t been lost in the economic downturn), so why should tax dollars go to high school education either?

Maritov, Assistant Professor of Sociology at New England, at 9:50 am EDT on July 18, 2008

Higher education, even in science and engineering is often only a credential. The company trains you to do what they need done. Defund colleges and fund private vocational/technical training run by the industries that need the workers. Defund the “humanities” completely. Private industry, left alone by “do gooders", will find a way to sort out who can do their jobs. It is only the current system that forces people to pay for bogus credentials.

mike, at 10:25 am EDT on July 18, 2008

Better yet, since the campus is now so politicized, let the Democratic party fund the “humanities". They can establish chairs in “anti-Bush studies","Regan was dumb","no blood for oil","Socialism now” and “Diversity", since these subjects are now taught instead of History, English and the other Humanities. We can also get money from the Arabs, who currently fund our “Middle East Studies” departments. Perhaps they’ll want to branch out...

mike, at 12:00 pm EDT on July 18, 2008

The sense of entitlement that this article embodies is amazing. That the democratically taken decisions of state legislators need to be corrected is a breathtakingly arrogant claim. The idea that the failure of state level funding is the key element in tuition increases seems farfetched and is transparently self serving.

Who can take this seriously?

binkless, at 12:50 pm EDT on July 18, 2008

Omigod, It’s A Miracle!

I think I find myself agreeing will L.L. about once in a blue moon – if that often — but I certainly agree with much of what he has to say about college costs ... and I’m certainly on his team when it comes to underwriting the training of lawyers and CEOs.

But I assume his comment about millionaire heart surgeons is something of a placeholder for the wealth of most physicians. If so, I feel compelled to respond, because, as I type this, my daughter-in-law is looking over my shoulder, and, just last month, she completed her third year of medical school and has just begun her second year of rotations (this month she’s working in an emergency room).

There seems to be more than a little information “out there,” so I’ll let you get on-line and check it out yourself. But, suppose that, upon graduation, a medical student has combined undergraduate and medical school debt of $120,000 (which is less than the average). Using the data in an article by Glickman and Yock in “Academic Medicine” (1998) it would take an income of $334,700 in today’s dollars to “comfortably” pay off that much debt after graduation. Indeed, they claimed that with a sustained income of $162,400 (today’s dollars) it is essentially impossible to pay off that much debt. Yet today, the average starting salaries for physicians are General Practice = $117,000 ... Internal Medicine = $128,000 ... Pediatrics = $120,000 ... OB-GYN = $165,000 ... Endocrinology = $140,000 ... etc.

http://residency.valuemd.com/physiciansalary.htm

I’m not saying physicians are destined to live frugal lives – we all know better than that – it’s just that (1) the amount of debt many are accruing just to get through school is a potentially enormous burden and (2) the differences in incomes across specialties could “push” many off in directions we don’t want them to go. My daughter-in-law, for example is still mulling over her options, but it is much more likely that she will opt for either Family Practice = $125,000 or Emergency Care = $180,000 rather than Cardiovascular Surgery = $208,000. Oops, she just changed her mind.

Recently I flew cross-country with a senior at the U.S. Military Academy. He told me – and I have corroborated it – that the cost to us taxpayers for sending a young man or woman to the USMA is $441,000 ... to the USNA is 351,800 ... to the USAFA is $400,000 ... and, of course, they’re all getting a “free ride.”

I’m guessing, L.L., you think that’s a lot of money for the education of our future military elite ... but you, nevertheless, believe it’s in the best interest of the country to make that investment. Personally, I don’t begrudge those young men and women a penny of what we pay for their education ... but I feel the same way about training almost all physicians.

Frizbane Manley, at 1:05 pm EDT on July 18, 2008

Revenue (Salary) Enhancement

“The perversity of the present system is that as state legislatures lower their fiscal effort or do not provide adequate support for increasing student populations, tuitions and fees subsequently rise, and as a result most federal student aid programs are tapped at higher levels further indebting ever more students and with greater average debt.”

Just like those among us who supplement their salary by running up their credit cards.

Or borrow Jumbo loans with no income verification.

Or borrow student loans to enhance their “student” lifestyle.

Or FICO scores which are lowered because you paid off all of your debt.

Or...well you get the picture. Noone is fiscally responsible. We are just be good little magaconsumers.

Prediction: the mortgage, student loan, and now airline industries are just the beginning of the cascade.

Check Please!

R.F., at 4:05 pm EDT on July 18, 2008

Who can take this seriously?

“.. Who can take this seriously?”

That has to be one of the most-cogent points made in IHE in the last 12 months. To wit:

” ..why should tax dollars go to high school education either?”

Uh .. because U.S. K-12 has been funded by the public (both in public and private modes) for 300+ years? And not higher-ed?

” .. but I feel the same way about training almost all physicians ..”

So .. the point is? As the majority of MD students are from the upper-middle-class, anyway?

http://www.unmc.edu/Community/rur...medical_schools_and_rural_gradua.htm

Want more money? Look in the mirror. Start lobbying there.

L.L., at 4:05 pm EDT on July 18, 2008

Ensuring West Point

” .. I’m guessing, L.L., you think that’s a lot of money for the education of our future military elite ..”

Recall the saying “about making assumptions.” As in A** U ..

My grad-school neighbor is USMA grad and taught at the Point. I’ve been given the general’s tour of West Point, including the spot where Benedict Arnold realized he’d screwed up. I know, to the dollar, what a USMA education cost. Ditto with Annapolis.

To try to compare a national, Ivy-level military service academy to the typical Moo U medical school filled with upper-middle-class kids is like trying to compare the Marines with Teach For America. Kind of futile and useless, really.

L.L., at 7:40 pm EDT on July 18, 2008

Hmmm ... They Won’t Check That Anyway

Two Things:

First, L.L has a knack for sending Inside Higher Ed readers to URLs that don’t even come close to substantiating his claims.

In “Who Can Take This Seriously?” he writes ...

“So .. the point is? As the majority of MD students are from the upper-middle-class, anyway?

http://www.unmc.edu/Community/rur...medical_schools_and_rural_gradua.htm

Of course if you follow that URL you will find a multiple regression model – and not a very good one at that — that “predicts” a medical school’s production of graduates who take jobs in rural communities ... and get this, without a hint that “the majority of MD students are from the upper-middle-class ....” The independent variables are “rurality,” public medical schools, NIH funding, and rural mission. There is no discussion of L.L.’s conjecture.

In that article we learn ...

“The main factor that contributes to the successful rural graduation rate for a medical school is global and environmental, the rurality of the state,”

and the author supplies enough cautions and disclaimers about his data to make you wonder if his analysis even confirms that seemingly obvious result.

Second, I apologize for suggesting that L.L would assume $441,000 is a lot of money for the education of our military elite. I have been teaching for a long time, and, in my experience, I can’t think of any other colleges or universities where a student would be expected to pay more than that amount for four years of education, not even for most professional degrees. I mentioned the cost of educating students at our military academies in the same sentence with the debt accrued by medical students only because (1) both are at the high end of the cost-of-education spectrum and (2) in my opinion, we come very close to getting our money’s worth from both. Personally, I am more than happy that a goodly number of our youngsters make those choices.

Finally, I agree ... I should know better than to make any assumptions about L.L.’ thought processes.

Frizbane Manley, at 10:00 am EDT on July 19, 2008

A more careful reading ...

.. would lead to this —

http://www.unmc.edu/Community/ruralmeded/birth_origins_articles.htm

” .. Students from the most privileged backgrounds have the highest MCAT scores and easily gain admission ..”

IMO and a lot of people’s — most U.S. medical doctors are well-compensated for their efforts.

Contrary to what many want the tax collectors to do more of — no one is forcing MD-students to become MDs. To shed croc-tears for MD-students is absurd, frankly.

Now .. back to the issue at hand —

Why should non-college students be taxed so upper-middle-class kids can become MDs, millionaire trial lawyers, and CEOs? Where is the fairness in that?

L.L., at 10:40 pm EDT on July 19, 2008

How big was the decline in support, really?

If figured based on the fraction of tuition and state dollars coming from the state to support instruction, research, and service — there has been a huge decline in state support.

If figured based on real dollars, corrected for inflation with the CPI, the decline is more modest — maybe $1500 of a $7000 rise in tuition is the fault of the state.

Details can be read in the bottom third of http://doctorpion.blogspot.com/2008/07/inflated-inflation.html

One could, perhaps, look at the doubling of tuition beyond what was needed to cover state cuts as value added to that university’s education at the expense of the student and the federal government, well beyond what the state paid for about forty years ago.

Note that a 40 year doubling time only requires an increase of less than 2% above inflation. Not easy to notice in the short run.

CCPhysicist, at 4:20 am EDT on July 21, 2008

More Dollars Does Not Equal Greater Public Good

A mandate is desired to ensure that states continue to fund existing commitments in higher education. Sounds nice — but in practice...

What if the existing commitment is to a dysfunctional institution (e.g. an institution with low graduation rates or excessive years-to-graduation averages)? What if the existing commitment is to an institution that misallocates money and resources, perhaps routinely, on a large scale (e.g. via nepotism, inappropriate pay levels or rapid administrative expansion)? What if maintenance of the existing commitment prevents needed improvements to a community’s tertiary education (e.g. through the provision of other institutions and programs, or the relocation of programs to areas that may need them)? What if the existing commitment is to an institution that does not honor its relationship to its funding community?

History indicates that it’s primarily areas with institutional diversity that see increases in educational quality and increases in the types of economic diversity and economic gains necessary to provide feedback effects in institutional funding.

Let’s start looking for greater, REAL accountability before whipping the taxpayer — or for that matter, the citizen student — both of whom are already on the hook for far too many other misallocations.

Scrawed, at 4:20 am EDT on July 21, 2008

On Learning To Use The Internet

Thanks L.L. I went to the (second) site your recommended – another Robert C. Bowman article – and learned that amongst students at allopathic medical schools who choose either a Family Care practice or setting up shop in a rural community more come from lower socioeconomic backgrounds than from higher socioeconomic backgrounds. In fact ...

“The key to selection of family physicians and physicians who will distribute [to rural communities] is socioeconomics. Those of lower SES distribute to rural and poverty locations better also. Cooter found 13% choice of family medicine for the highest quartile of income compared to 22% for the lowest student income origins. Rural, older, instate born, instate determined, and lower income students all share strong positive correlations with choice of family medicine and negative correlations with the Medical College Admission Test in studies at the medical school level.”

Unfortunately, Dr. Bowman is still not addressing what you claimed to be true way up there in “Who Can Take This Seriously?”

Look, L.L., if you want to “prove” your point, go to ...

http://content.healthaffairs.org/cgi/content/full/24/2/527

That’s a fairly interesting article based on reliable data ... and it almost makes your point.

Or if you don’t mind unsubstantiated and unreferenced statements – and I think that’s right up your alley – go to ...

http://www.alternet.org/healthwellness/73774

where the much-published Maggie Mahar writes ...

“This helps explain why 60 percent of all medical students come from the wealthiest one-fifth of all U.S. families. Another 20 percent come from families lucky enough to be on the fourth step of a five step ladder.”

If you work at it a bit, I think you will discover that accurate and effective use of the Internet is not all that difficult. And, truth be known, if one is sufficiently persistent, s/he can find substantiation of almost any conjecture s/he’s inclined to make; e.g., “the better informed Republicans are about global warming the less they’re concerned about it.”

http://environment.newscientist.c...ans-less-concerned-over-climate.html

Frizbane Manley, at 9:10 am EDT on July 21, 2008

Back to the original topic ..

” .. where the much-published Maggie Mahar writes ...”

After 2,000 words .. thanks for agreeing that why upper-middle-class kids (like those with successful Hawaiian banker-grandparents) are advantaged over farm kids who have to work.

(Uh, psst .. your source has a PhD in English and has never worked in heath sciences education.)

As for this, ” .. And, truth be known, if one is sufficiently persistent, s/he can find substantiation .. s/he’s inclined to make; e.g., “the better informed Republicans ..”

Hmm .. does that include Democrats about Fannie Mae? That’s there’s really not a problem? That all those people around IndyMac offices are really illusions?

Now .. back to the original topic .. see today’s NYTimes, on Berea College.

http://www.nytimes.com/2008/07/21....html?_r=1&ref=us&oref=login

Dang it. How can Berea College make it without more gum-mint “help?” Is it because they actually try to control costs?

L.L., at 1:50 pm EDT on July 21, 2008

Final Remark To L.L.

Sorry, but I never disputed the fact that a large number of American medical students come from the upper and upper-middle classes (but certainly not my daughter-in-law). I was merely registering a complaint about the “accuracy” of your cited URLs.

Check back to verify that.

Berea (and Warren Wilson College) are amongst my favorite places. And Berea was doing that long before its endowment reached $1.1 billion. On several occasions I’ve sent application to both of those fine colleges.

http://www.warren-wilson.edu/external_index.php

Frizbane Manley, at 3:05 pm EDT on July 21, 2008

Ensuring accuracy

” ..Check back to verify that ..”

For future reference, to save everyone time, check with Webster’s on how to be communicate clearly —

Yes: an affirmative reply.

As in, “yes, I agree.” Adding 997 words are not required, as they will only confuse and waste time.

L.L., at 10:05 pm EDT on July 21, 2008

Constitutional limits? Separation of powers?

How about just holding the federal legislatures accountable to the fact that they spend the lion’s share of the nation’s public revenues?

Forget it. We’ve got a few bucks to chase. Forget the law, forget who actually taxes us and spends the money — because the Feds say its time for the states to pony up.

Is this a clever way of the federal Congress informing us that only bank bailouts and new financial regulations are worth their time and our money? A clever way to divest itself of any obligation to actual public services as opposed to corporate cronyism?

I have a proposal — let’s get our state leaders to pass a bill requiring Washington D.C. to spend its share on education rather than corporate welfare.

edulinks, at 5:05 pm EDT on July 22, 2008

Advertisement

 Jobs Related to Ensuring That States Support Higher Ed

or search for jobs directly.

Institutional Research Analyst
New York Institute of Technology

New York Institute of Technology (NYIT) offers undergraduate, graduate and professional degrees to approximately 15,000 ... see job

Divisional Administrator I
Weill Medical College of Cornell University

Founded in 1898, and affiliated with what is now New York-Presbyterian Hospital since 1927, Weill Cornell Medical College ... see job

Investment Analyst
Cornell University

Located in Ithaca, N.Y., Cornell University is a bold, innovative, and inclusive teaching and research university of ... see job

Financial Analyst
University of California, Riverside

The University of California Riverside invests in your future through employee training and career development, access to ... see job

Senior Business Analyst
Lone Star College System

Located just north of Houston, Texas, our five campuses serve 1,400 square miles. Our student enrollment is nearly 50,000 in ... see job

Adjunct Assistant Professor, Accounting/Finance
College of Saint Benedict/Saint John’s University

Term, Adjunct Assistant Professor — Accounting/Finance The College of Saint Benedict and Saint John’s University invite ... see job

Business Manager (Administration)
King Abdullah University of Science and Technology

The King Abdullah University of Science and Technology (KAUST) is being built in Saudi Arabia as an international, ... see job

Assistant Manager, Campus Reporting and Data Delivery
Cornell University

Located in Ithaca, N.Y., Cornell University is a bold, innovative, and inclusive teaching and research university of ... see job

Part-Time Assistant II, Business Office
Lone Star College System

Located just north of Houston, Texas, our five campuses serve 1,400 square miles. Our student enrollment is nearly 50,000 in ... see job

Financial Planning Manager
Cornell University

Located in Ithaca, N.Y., Cornell University is a bold, innovative, and inclusive teaching and research university of ... see job