Our Higher Education System

14 | HIGHER EDUCATION 1414 | HIGHER | HIGHER EDUCATION EDUCATION HigherHigherHigher EdEd -aches -aches StatesStatesStates are areare searching searchingsearching for forfor ways waysways to tocontrol control the the ever- ever-increasingincreasing costs costs of ofa collegea college education. education. “Our higher education system is antiquated— “Our“Our higher higher education education system system is isantiquated— antiquated— BYBY SUZ SUZANNEANNE W WEISSEISS wewewe have havehave to to toface face it.” it.” oday,oday, nearly nearly 60 percent60 percent of the of the20 million20 million Americans Americans —IDAHO—IDAHO—IDAHO SENATOR SENATORSENATOR DEAN DEANDEAN CAMERON CAMERON (R) (R) whowho attend attend college college each each year year borrow borrow money money to help to help covercover costs. costs. Tuition Tuition is skyrocketing, is skyrocketing, state state funding funding is isis sinkingsinking and and the theaverage average student student borrower borrower graduates graduates withwith more more than than $26,000 $26,000 of debt. of debt. Loan Loan default default rates rates are are rising,rising, and andonly only about about half half of those of those who who start startstart college collegecollege graduateTgraduateT within within six years.six years. That’s That’s why why a growing a growing number number of states of states are aretaking taking a radically a radically different different approach approach to funding to funding colleges colleges and and universitiesuniversities that that could could change change forever forever the theway way we lookwe look at higher at higher StudentStudent education.education. DebtDebt At aAt time a time when when a college a college education education has hasnever never been been more more expen expen- -- sive—orsive—or more more important—a important—a rising rising chorus chorus of critics of critics argues argues that that that manymany students students are aregraduating graduating ill prepared ill prepared for afor rapidly a rapidly changing changing and andincreasingly increasingly competitive competitive job jobmarket. market. “Our“Our higher higher education education system system is antiquated— is antiquated— we havewe have to face to face it,” it,”says says Senator Senator Dean Dean Cameron Cameron (R) (R)of Idaho. of Idaho. “These “These schools schools are areproviding providing stu- stu- (R) of Idaho. “These schools are providing stu- dentsdents with with degrees, degrees, but butwith with degrees degrees that thatwill will not not dents with degrees, but with degrees that will not necessarilynecessarily get getthem them a job. a job. Up untilUp until now, now, it feels it feels necessarily get them a job. Up until now, it feels likelike all we’veall we’ve done done is chase is chase down down rabbit rabbit trails trails Senator Senator like all we’ve done is chase down rabbit trails Senator herehere and andthere, there, looking looking for waysfor ways to make to make the systhe- sysDean- Dean here and there, looking for ways to make the sys- Dean temtem more more functional, functional, but butit just it justends ends up beingup being an anCameron Cameron (R) (R) Cameron (R) exerciseexercisetem more in futility.” in functional, futility.” Idaho Idaho but is oneit is just oneof theends of statesthe up states being that that anIdaho Idaho Idaho are areexerciseconsidering, considering, in futility.” or have or have Idaho already already is one established, ofestablished, the states a new thata new way way to fund to fund publicpublicare collegesconsidering, colleges and and universities.or haveuniversities. already established, a new way to fund “We’vepublic“We’ve colleges tried tried to andprotect to protectuniversities. our ourhigher higher education education system system here here in in Idaho,”Idaho,”“We’ve he says.he triedsays. “We to“We knowprotect know it’s our it’san higher assetan asset andeducation andhow how important system important here it init is toisIdaho,” our to ourfuture. hefuture. says. But But the“We thedemands know demands it’s on an ouron asset ourtax dollarstax and dollars how are importantsoare great so great it rightrightis now to ournow that future. that colleges colleges But and the anduniversities demands universities on simply our simply tax have dollars have to figure toare figure so out great out howhowright to deliver tonow deliver that a better colleges a better product. andproduct. universities I’m I’mnot notsure simply sure what whathave it’s it’stogoing figure going to out to taketakehow to make toto makedeliver that that happen, a betterhappen, but product. butit needs it needs I’m to happen.”not to happen.”sure what it’s going to take to make that happen, but it needs to happen.” DecliningDeclining Subsidies, Subsidies, Rising Rising Tuitions Tuitions StateDecliningState appropriations appropriations Subsidies, have have historically Rising historically T uitionsbeen been the mostthe most import import- - ant antsourceState source of appropriations fundingof funding for forhigherhave higher historically education, education, been but butoverthe overmost the thepastimport past - ant source of funding for higher education, but over the past SuzanneSuzanne Weiss, Weiss, a freelance a freelance writer writer in Denver, in Denver, is a frequentis a frequent contributor contributor to State to State LegislaturesLegislatures magazine. magazine. Suzanne Weiss, a freelance writer in Denver, is a frequent contributor to State Legislatures magazine. STATE STATE LEGISLATURES LEGISLATURES | FEBRUARY | FEBRUARY 2014 2014 STATE LEGISLATURES | FEBRUARY 2014 HIGHER EDUCATION | 15 The Cost of College By the Numbers two decades that support has steadily waned. in the 2013-14 school year. The slowdown Between 1987 and 2012, in real dollars, government support is due at least in part to higher-education 10.6% for public colleges and universities declined from $8,497 per budget increases in many states in 2012 The average decline in state student to $5,906 per student, according to the latest report of and 2013—modest increases, for the most funding of higher ed since 2007 the State Higher Education Executive Officers (SHEEO). In the part, but exceeding 10 percent in five states, past five years alone—since the onset of the Great Recession— according to a recent NCSL report on state state fiscal support for postsecondary education has fallen 10.6 budget and tax actions. 112% percent nationwide, with cuts ranging from 4.5 percent in South The new funding reflects a brightening Increase in tuition costs at public Dakota, to nearly 50 percent in Arizona, Florida and New Hamp- financial picture in many state capitols. Tax four-year institutions since 1990 shire. revenue in 47 states rose in 2012 by an aver- As state subsidies declined, institutions made up the difference age of 4.5 percent, U.S. Census data show. by raising the price of attendance, shifting costs that once were “Historically, funding for higher ed tracks 71% a social investment onto students and their families. Since 1990, the economy,” says James Palmer of the Increase in tuition at community tuition costs at public four-year institutions have increased by 112 Center for the Study of Education Policy at colleges since 1990 percent and at community colleges by 71 percent. Today, tuition Illinois State University. “As the economy constitutes roughly half of postsecondary institutions’ educational gets better, state funding for higher educa- revenues, compared with just 23 percent 20 years ago. tion increases. That’s been the pattern.” With rising tuition and stagnating incomes—the median But it’s unlikely that funding will return 2.1% The growth in median household household income grew by just 2.1 percent over the past two to pre-recession levels. “Who knows when, income from 1990 to 2010 decades—students and their families have taken on record levels or even if, that will happen,” of debt. Student loan debt in the United States has nearly tri- says Colorado Senate Major- pled since the mid-2000s, topping $1 trillion and encompassing ity Leader Rollie Heath (D). roughly 39 million borrowers. It is now the largest form of con- The $30 million increase in 50% vs. 23% Tuition’s portion of higher ed sumer debt outside home mortgages. higher education funding revenues, 2013 vs. 1993 that Colorado legislators At Least a Slowdown Senate Majority approved in spring 2013 The latest report by the College Board shows that tuition con- Leader “was really just a drop in the tinues to rise, but at a somewhat slower rate—2.9 percent at pub- Rollie Heath (D) bucket, considering the cuts 39 million lic four-year institutions and 3.5 percent at community colleges Colorado we’ve made over the past The number of students in debt, several years,” Heath says. second only to home buyers Iowa, Minnesota, Montana, Nebraska, Majors Matter Sources: U.S. Census Bureau, Oregon and Washington have made budget College graduates may have paid the same tuition, but their American Institutes for Research increases contingent on tuition freezes. Other average earnings vary greatly by major. Below, median annual Delta Cost Project, State Higher states boosted higher education funding, but Education Executive Officers earnings, by occupation, during prime earning ages of 24-65. earmarked the new money for specific things, Top Payers ranging from the creation of online degree $40,000 $80,000 $120,000 Petroleum Engineering programs to expanded financial aid for low-income students. Mathematics/Computer Sciences

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