Soon millions of parents will be writing tuition checks for their
children at public universities, believing that they are paying much
less than the actual cost of an undergraduate education.
Tuition at these public institutions has been going up quickly in the
past decade, reversing the long-held public policy that tax monies
should pay for most of the tuition and the rest of the expenses of
public higher education. Quietly year by year, privatization of a public
good has been growing.
Public undergraduate tuition at schools such as the University of
California has almost reached a level beyond which parents may be
starting to subsidize teacher research and related graduate education.
This is the argument made by a retired professor of physics (UC
Berkeley), Charles Schwartz.
First a word about the remarkable Charles Schwartz. For over a decade
this scientist has volunteered thousands of hours pouring over the
gigantic multi-billion-dollar budgets of the University of California;
most recently he alleged secret, poor management of pension and
endowment funds.
University budgets have few faculty, student or alumni overseers. For
one thing they are very complex to understand; for another, the critical
breakdown details are either not there or are considered confidential.
Professor Schwartz, knowing and caring more than anyone else outside of
officialdom, has become the learned hair shirt of the University
Administration. He has pointed out many deficiencies in the annual
budget at public meetings with University officials and on his
extraordinary website (http://ist-socrates.berkeley.edu/~schwrtz/).
The University reaction, with few exceptions, has been to ignore his
protestations or to dismiss his figures as attempting to disaggregate
the cost of education in a way that will be of little value.
Dr. Schwartz disagrees, in his usual meticulous manner, with a 16 page
paper (posted at
http://socrates.berkeley.edu/%7Eschwrtz/UndergradCost.html ). He
calculates the actual expenditure for undergraduate education at the
University of California as averaging $6,648 per student with the
parents-students paying 95% of that cost. By contrast, the University
officials say the average cost of such an education is $15,810 per student.
He explains the discrepancy due to his disaggregating undergraduate
education from the whole bundle of academic functions, which includes
other levels of education plus faculty research. Unlike for graduate
education, he says there is very little connection between faculty
research and undergraduate education.
So why should anyone care about this, asks Professor Schwartz? Because
the state subsidy for UC undergraduate education is almost entirely
replaced by what students or their families are paying for tuition. And
if student fees continue to rise, as is widely expected, then tuition
checks will start subsidizing faculty research and related graduate
programs. In short, public university student tuition may start becoming
like private universities where cross-subsidies have been long standing.
After establishing his methodology, Dr. Schwartz lists several
anticipated objections and methodically responds to them. He then argues
that student tuition should not be permitted to rise above the actual
cost of their undergraduate education. Otherwise the undergraduate
subsidy begins. "Such a forced subsidization," he asserts, "is something
that deserves a most serious debate as a matter of public policy." He
believes his research methodology "should be applicable to any major
[public] research university."
Dr. Schwartz worries about an emerging vicious circle. As undergraduate
student tuition charges continue their annual increase, qualified lower
income students may not be able to afford them. With the shift to
admitting more students from more affluent families, the state
legislatures may reduce their state funding, which in turn will
accelerate the increase in student tuition. He calls this "a transition
- the privatization of undergraduate education at the Public
Universities," leading to greater class stratification and reduced class
mobility.
University administrators at Berkeley and elsewhere are not about to
change the bundled accounting system used by their financial managers.
But Professor Schwartz says there should be an open and honest debate
about these choices. "Our duty," he adds, "is to not allow it to remain
hidden."
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