CarlSmithCenter
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RE: The Coming Privatization of State Universities
(03-13-2021 12:12 PM)Wahoowa84 Wrote: (03-13-2021 11:31 AM)Frank the Tank Wrote: (03-12-2021 06:29 PM)Wahoowa84 Wrote: (03-12-2021 01:52 PM)Wedge Wrote: (03-12-2021 11:53 AM)Wahoowa84 Wrote: From a public policy perspective, I don’t get why state governments are still providing funding and tax benefits to many higher-level “public” universities. IMO, Pennsylvania has it right with their treatment of Pitt, Penn State, etc.
It makes sense for governments to fund/subsidize community colleges...schools that are not selective and provide higher education to the general population. Elite public universities, such as UVA, have the foundations and resources to be financially independent. A lot of these universities could become private non-profits and effectively continue their missions.
On the other hand, Virginia taxpayer money has been going to UVa since it was founded, and given that the university isn't going to pay all that money back with interest, that's a pretty good argument for continuing to allow Virginia residents to attend UVa at a lower cost than non-residents have to pay.
Maybe I’m mistaken, but I thought Pitt and Penn State still give some forms of preferential treatment to in-state Pennsylvania residents. Agree that UVA owes something to the Commonwealth...it is the flagship institution, it wants to attract a higher number of Commonwealth students. The difference is that the Governor and legislators won’t be demanding a strict quota percentage of residents...there will be a more nuanced negotiation.
The point is that the state should stop subsidizing the generally wealthier families. Elite, selective universities’ admissions naturally skew to the well-off...yet rich people don’t need the welfare.
It’s a delicate dance. From a pure social welfare perspective, you can argue it’s a more fair distribution of resources for more state money to go to regional schools and local community colleges. On the other hand, from an economic perspective, when states are trying to convince high growth companies with faster growing employment to open up offices, those companies focus very highly on the the types of areas where many flagships excel (e.g. engineering, computer science, accounting, etc.) and churn out a larger critical mass of those graduates than elite private universities. Look at where some of the highest growth metro areas for jobs that require a college degree: Austin, Raleigh-Durham, Denver-Boulder - these are all places where highly-rated flagships are directly within their metro areas.
Everyone also has a different definition of who is “rich” (which I think is where we get a lot of misinformed policy opinions on both sides of the aisle on a lot of issues). Let’s say that the upper middle class is defined as the top 20% of households on the income scale. That’s the statistically “wealthy” portion of the population that disproportionately sends their kids to flagship schools. However, that group is much more powerful than 20% of the population. First, they vote at much higher rates than lower income households, so they make up a much larger share of the voting population (e.g. closer to 30% of the electorate in Presidential election years and even higher percentages in lower turnout elections like midterm and municipal elections).
Not only that, this group disproportionately lives in the suburbs, which as we’ve seen in the last few election cycles is possibly the last place where there is a critical mass of actual 50/50 swing voters. These are people that generally don’t love higher taxes proposed by the left (because they don’t think of themselves as “rich” even though they might be statistically compared to the rest of the population) but also are increasingly turned off by the cultural positions of the right. So, this groups wields even more power than their already disproportionately higher electoral percentage because both parties need this specific group to win any election that’s close. Both parties’ conventions last year were almost completely programmed (and pretty blatantly) to target this specific group.
Anyway, this is a long winded way of saying that you do NOT win any friends as a politician with this portion of the electorate by shifting even more of the costs of flagship tuition on to them. It costs about $150,000 for 4 years of in-state tuition and room and board at the University of Illinois right now, so it’s already effectively a quasi-private university. Many other schools are in the same position. That’s a lot of money for most families even within the top 20% of the income spectrum for just one kid. Saving $300,000 for 2 kids is something that is challenging (impossible?) for anyone outside of the very top high income households... and once again, that’s *current* *in-state* *public* university tuition pricing. What the OP is stating has *already* happened.
Now, to be fair to those politicians (as much as they may not deserve it), this group can also talk out of both sides of its mouth sometimes. They’ll hammer you on any tax increases, but then also hammer you when their State U tuition bill jumps. It’s a very delicate dance with a fickle group that collectively wields a lot of electoral power.
Your points are mainly from a political perspective, rather than policy.
Agree completely that as state funding has been cut, elite publics have already transitioned to quasi hybrid models. I graduated from UVA in 1984...my final year’s in-state tuition was a very patriotic $1,776 (for the entire year). A few years later, I went to a private business school with tuition at $17,500...a ten-fold increase in tuition between somewhat comparable public and private tuitions. UVA’s in-state tuition rate is now only 3.3x the OOS/private rate.
The University probably couldn’t raise enough private funds to afford to buy the Grounds from the Commonwealth, even if it was inclined to sell. Financing new construction would also probably become more difficult without being able to rely, at least in part, on public bond financing. I think maintaining the veneer of a public institution is palatable to many folks, even if certain aspects of the school (Darden, the Law School) are essentially private entities already.
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