University funding: What does it buy for students? | IN 60 SECONDS


We often hear that public universities
charge higher and higher tuition because state policymakers have cut their
funding. Some say then the way to bring tuition down is to bring government
funding up. Yet most research finds that when state governments cut or increase
funding to public universities, the effect on tuition is quite weak. One
rigorous study found that for every additional dollar public universities received from
taxpayers, tuition declined by only 26 cents. So where’s the money going? Well
for one, a university could allocate a budget increase to boost its own
spending on new programs and services. In this case, funding goes up, and university
spending goes up, so tuition stays the same. Now consider a university facing
budget cuts. One 2018 study found that universities often reduced their own
spending instead of passing all the budget cuts on to students through higher tuition. The bottom line is: not all funding cuts are bad, and
not all funding increases make tuition more affordable. What do you think is driving tuition
increases? Let us know in your comments. Also, let us know what other topics you’d like
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5 Replies to “University funding: What does it buy for students? | IN 60 SECONDS”

  1. There have been huge increases in "grievance studies" and diversity programs that are required classes at most universities. The administrator class has also mushroomed. If your child isn't in a STEM field or business, tell them to get a job instead. The humanities and soft sciences are polluted with no value.

  2. They increased my tuition to build new housing that wont be finished until after i graduate, that and for some sort of sports thing? They also tried justifying tuition hikes “to pay workers” when so far every year the campus workers strike because of pay and benefit cuts despite this being one of the most expensive cities to live in in CA. The asshole in charge pockets 400k, while pocketing an equally cushy retirement.

  3. Maybe halting government funding would help in removing pointless and now, arguably detrimental tuition that is nothing for than ideological indoctrination and a intellectual sinkhole. i.e. Gender Studies and most of the crap they teach in humanities and social sciences.

  4. Higher education is no longer primarily in the business of educating students. Funding that used to come from students tuition and alumni now is attracted from government grants and large corporate donations. In order to attract those donations, the institution must be large enough to garner respect. And respect can be earned in many non-intuitive ways, including through the prominence of the football team, and the number of affirmative action and gender equity positions in the administration. Large size and more prestige translates directly into government funding that, in turn, can be used to build new programs, new buildings, new non-essential, non-teaching staff positions.

    Colleges and Universities are in the business of making themselves as large as possible, not for the benefit of the students, but for the benefit of the administrators. And they're willing to do it on the backs of students, who leave the institution with crushing debt that they're still paying off 30 years later.

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