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Bob Samuels

Bob Samuels

Posted: August 13, 2010 10:42 AM

Higher Education?: How Colleges are Wasting our Money and Failing Our Kids - And What We Can Do About It by Andrew Hacker and Claudia Dreifus shows how a little knowledge can be a dangerous thing. While the authors do touch on many important topics concerning the current state of American universities and colleges, their book suffers from a misunderstanding of how budgets work at research universities. In fact, the first major problem is that they want to totally dismiss the importance of the research function of these schools; however without research, it makes no sense to have research universities.

As I have argued elsewhere, the problem is not that the universities have taken on many different functions; the issue is that these institutions engage in false and misleading accounting practices that result in escalating costs and decreased educational quality. For example, most schools argue that they lose money on each student because the true cost of education is much higher than the price of admission; however, when universities make this claim, they are secretly arguing that everything a university does should be paid for by each undergraduate student. For example, Hacker and Dreifus write that Harvard budgets $125,680 per student per year (77), yet these authors also show that many of the undergraduate courses at Harvard are taught by relatively inexpensive graduate students and non-tenured faculty (49). I have estimated that true instructional cost at Harvard is closer to $15,000, and what undergraduates students are really paying for is unrelated administration, research, and graduate education.

By concentrating on the true instructional cost, I have argued that universities could easily freeze tuition and increase enrollments and still turn a nice profit, but in order to do this, schools have to be honest about how they spend their money. I have also warned that if universities do not embrace a more transparent form of budgeting, they will suffer a public backlash that is now gaining steam. In fact, Hacker and Dreifus's book is an example of what happens when universities fail to reveal how they really spend their money. The result is that these well-intentioned authors end up calling for the end of tenure and the spinning off of the research mission.

Since the authors do not see any value in schools spending money on important research projects, they argue that schools should put all of their time and money into teaching. Moreover, since there appears to be no direct connection between research and quality instruction, Hacker and Dreifus have no problem calling for the end of academic job security. While I am sympathetic to many of their claims about how tenure does not help improve instruction, I do feel that these writers fundamentally misunderstand the value of research universities.

Without American research universities, we probably would not have the internet, cell phones, and most cures for life-threatening diseases. Furthermore, without these institutions, we would not be able to map the human genome, nor would we understand how the brain functions and why it is important to have a diverse social environment. The simple fact of the matter is that American research universities are the foundations of social innovation and technological experimentation. Yet, the problem is that universities hide their essential role because they do not want to discuss how they actually fund their research projects.

Since schools do not want to acknowledge that undergraduate students subsidize external research, they end of secretly stealing money from instruction to pay for research and administration. For instance, the University of California currently receives $10,000 from each undergrad and $14,000 from the state for each student, but only $5,000 of this amount goes to instructional costs. This means that the majority of undergraduate funds goes to pay for research, administration, and other activities that are not directly related to undergraduate education. In other words, undergraduate students and the state are unknowingly subsidizing the research mission.

As Hacker and Dreifus rightly point out, research funded by outside sources, like the federal government and corporations, rarely covers the full cost (122). The reason for this discrepancy is that in order to perform research, universities have to build new facilities, hire more administrators, buy more equipment, and increase the staff. Unfortunately, schools rarely admit that research loses money, so they have to secretly take money from the undergraduates. Likewise, as Hacker and Dreifus highlight, most athletic programs lose money, and so students end up subsidizing these nonacademic departments (157).

One of the results of this covert subsidization is that schools continue to reduce their instructional budgets by increasing the sizes of classes and augmenting the number of non-tenured faculty. Furthermore, since universities put so much emphasis on their research mission, they tend to disregard the poor teaching quality of many of their professors. The result is that you have the most expensive faculty with life-time job security concentrating on research, while the non-tenured faculty usually have no job security and very low pay, but they are the ones who do most of the undergraduate teaching.

Hacker and Dreifus' solution to these issues is to simply get rid of tenure and put everyone on multi-year contracts. However, the problem with this resolution is that the authors under-estimate the importance of research and the power of administrators. In fact, Hacker and Dreifus argue falsely that "the professorial class controls what happens on many a campus . . . " Yet, the same authors later point out that the number of administrators has continued to out-pace the number of professors, and that the new administrative classes has taken over the control of most administrations (30, 108). The reason for this contradiction is that the authors want to blame professors for all of the problems instead of seeing how there are many different contributing factors.

The central way that professors are demonized is that Hacker and Dreifus take the average salaries of full professors and then divide them by the hours the professors spend in the classroom (24). This very misleading statistic only looks at the highest paid professors and also disregards most of the activities that dominate a full professors day. Since these authors do not recognize the value of research, shared governance, and class preparation, they are able to reinforce the popular idea that professors make a lot of money to do very little.

Once again, the reason why this cynical analysis may gain some traction is that universities have done very little to disabuse the public of these popular stereotypes, and the main reason why schools have not done a better job at telling the truth is that they lie about how they spend their money. Instead of defending the research mission and the need for students and states to fund these important projects, universities covertly make undergraduate students pay for everything else.

My simple solution is to have three types of professors: research professors, teaching professors, and hybrids. One result of this system is that professors who mostly do research and are forced to teach can concentrate on what they do best, while the people who are expert teachers can be given job security for their excellence in instruction. Moreover, the professors who are able to combine research and instruction should be rewarded for doing both. Implicit in this structure is the idea that there is no inherent connection between being a great researcher and a great teacher.

If we developed this tripartite system, we would also be able to have more accurate budgets, and people would see where the money really goes. It would also be possible to move to the type of contract system that Hacker and Dreifus propose as long as long-term contracts were protected by due process and academic freedom. Another possible result of separating research from teaching is that universities could be examined and ranked for the quality of their instruction and not just their research and funding levels.

 
 
 
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07:04 PM on 09/07/2010
"the majority of undergraduate funds goes to pay for research, administration, and other activities that are not directly related to undergraduate education."

Three points:

1. If research is the primary reason that undergraduate tuition has risen, then why has it risen at a similar rate at colleges that do little or no graduate research?

2. Aministration, beautiful recreational facilities, extra-curriculars, athletics, and many other university expenses have nothing to do with research. It seem clear, that just tabulating the amount that it costs to teach a class is not a fair way to evaluate the "cost" of an undergraduate education. Otherwise, community colleges and private colleges should cost approximately the same amount.

3. Is there some evidence that university research actually loses money? Because in my department, grant overheads provide millions of dollars in money that the university skims off the top to fund non-research expenses. Maybe there needs to be a distinction between scientific and humanities research?
03:26 PM on 08/20/2010
The idea of separate tracks for "research" and "teaching" professors is an old one. It goes back at least 20 years, and probably longer. Not sure why it never gained traction. The very BIG assumption in this article is that there is no connection between research and teaching. I am a full professor at a state university that focuses on teaching. But we are still required to do some research. In my experience, I am most enthusiastic and effective as a teacher in the classroom when I have a great research project going that sparks my curiosity and interest. Moreover, undergraduate students often feel like they are getting more bang for their buck when their professor has some "street credibility" in whatever it is they are teaching. Getting undergraduates involved in higher level research experiences is also a growing trend at universities like mine and smaller colleges. That is more effectively accomplished when the faculty do research themselves. It is a complex problem.
10:59 AM on 08/16/2010
This is an excellent overview of the problem. My forthcoming book has a detailed analysis of the incentive structure inside the higher education "black box" that leads to the persistent high cost and declining teaching quality. More information about the book can be found at:
http://www.collegecostdisease.com/

Robert E Martin
02:27 PM on 08/14/2010
It is the totality of the educational environment that provide the experience. Research attracts the professors, who attract the graduate students who attract the money and the reputation. Students do benefit from that environment. Facutly do do nothing but teach grow stale in their knowledge. If you spend 100 hours a week preparing lectures, making assignments, grading assignments and providing feedback there is nothing left to invigorate that knowledge. The world changes and the faculty do not. Scholarly research brings life and an intellectual environment. It brings about a way of doing business and a way of implementing standards to an institution. That sort of discipline does imact undergraduate education and does attract students because of the intellectual reputation. It is a different sort of student than the sports attracts but the investment a university makes in research is probably a lot more valid than its sizable investment in the sports.

The way we see the world and what has improved our lives comes directly from research at universities and if the researcher who makes the breakthroughs in say medicine, work for a research institute, where do you think she got her training, discipline, critical thinking skills?

Just a few American things brought to you by the universities:
Most astronauts Purdue University
Crest Toothpaste Indiana University
Gopher (precursor to the Internet as we know it) University of Minnesota
Volcano and earthquake physics University of Washington
02:24 PM on 08/14/2010
Poland already does this. They have facilities and faculty who do research and they have facilities and faculty who teach, and they are separate. We have built these institutions which means we can change them.
12:27 PM on 08/17/2010
Yes, I think you have it. We should base our education system on that of Poland! Why didn't we think of that earlier?
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gutenmorgen
a.k.a. poopdeck
08:32 AM on 08/14/2010
To mention just one deception. To the best of my knowledge every Federal grant stipulates that it cannot be used to affect a Professor's salary yet that was routinely done at the University from which I retried in 1997. Those faculty members who brought in lots of moolah were openly given higher salary raises than others by department heads and deans.
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jlive2003
Do not block the road of inquiry
02:13 AM on 08/14/2010
Some of the arguments in this article are a little strange. For example, in this passage:

"Hacker and Dreifus write that Harvard budgets $125,680 per student per year (77), yet these authors also show that many of the undergraduate courses at Harvard are taught by relatively inexpensive graduate students and non-tenured faculty (49). I have estimated that true instructional cost at Harvard is closer to $15,000, and what undergraduates students are really paying for is unrelated administration, research, and graduate education."

Graduate students are simultaneously said to be inexpensive and part of the additional costs (graduate education) to undergraduates. While non-tenured faculty are relatively inexpensive, graduate students are not -- at least, not when you factor in their tuition, which is often paid by their departments.
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gutenmorgen
a.k.a. poopdeck
08:38 AM on 08/14/2010
When I was chairman of my department I ordered that all required courses for the undergraduate major must be taught by tenured faculty. You can imagine the outcry of pain by that faculty because they always wanted to teach graduate courses only but I stuck to my order. Fortunately I was strongly supported by my dean and by the president of the university. That settled the matter and the outcries of pain subsided swiftly. I did not object to the teaching of laboratories by graduate students but I instituted a point system that depended on the amount of effort required. The introductory undergraduate course Geology 101 was given the highest point total.
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OldHick
01:48 AM on 08/14/2010
Hacker and Dreifus' solution to these issues is to simply get rid of tenure and put everyone on multi-year contracts. However, the problem with this resolution is that the authors under-estimate the importance of research and the power of administrators.
------------
Yes, they underestimate the power of their associates in public office, not the actual importance of their administering or that of their research. Three-fourths to 90% of all research money is just overhead for do nothing of any merit - just a salary pad.
zanzy
your micro bio is empty, just like our democracy.
11:29 PM on 08/13/2010
The problem is we wait to long to teach our kids to do science. Why wait until a student in a young adult? We should be starting in high school. This is why we are falling behind because we wait to long. The first major research grant is at 40 years of age. It is absurd. High schools and Universities are treated students like they are babies. The curriculum is old and classrom (not lab or applied). I had to take 4 advance math course in grad school, no math labs (4 to 4 credit hours each). The reality is this could have been one long class, with lab practiums, so we knew how to do all the different analysis. This would have made more sense and we would have learned alot more. But the reason the universities do it this way, is simple math (4 x 4=16 credit hours instead of 4). This a thousands of dollars more per student per degree. All the curriculum is this way. Basically, we are providing incentives to universities to have multiple classrooms and professors, not streamlining and updating curriculum.
11:00 PM on 08/13/2010
I think the problem really is that the authors of the book want their cake and eat it to. Liberal arts for all, but tech colleges/schools/training for them too. I go into a lot of detail on my blog and ask the question, what IS higher ed?

http://collegereadywriting.blogspot.com/2010/08/higher-education-part-v-what-is-higher.html

I also agree that your solution works better than the throw-the-baby-out-with-the-bathwater solutions often proposed by the book. Still, it is a terrifying read for anyone who values higher education and universities.
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NoraHuffposter
Liberal socialist
10:25 PM on 08/13/2010
The atmosphere at colleges have changed so much that those who want to only teach are looked down upon. Great professors who enjoy teaching are pushed into having 'labs' even when they are in the social sciences. Those labs. have to have numerous graduate students with a busy schedule of conference paper and journal article writing.

It really is a shame that undergraduate students pay so much money and yet sit in a classroom with 300 other kids, and listen to a lecture by a PhD candidate.
06:39 PM on 08/13/2010
The idea of greater budget transparency is difficult to argue against, especially for public universities. Making more information public is likely to lead to more influence from outside the institution, perhaps more publicly defensible decisions will be made, and the influence of administrative or faculty politics will be reduced.

The research universities have to compete for students with the other types of institutions. If the costs of tuition are really inflated by research and other expenditures, as suggested in the article, then it is surprising that they can compete effectively for students. Perhaps pursuing the research mission contributes so much to institutional prestige that it compensates for tuition expenses. Degrees from prestigious research institutions seem to be so highly in demand that the students have been willing to pay up for them, but as the article asks, can that continue in an environment where many average American families can no longer afford it.

Bernard Schuster
Arrive2.net
05:17 PM on 08/13/2010
This is an interesting article, but I'm not sure it gets to the real issue and the real solution. We need a new series of technical schools, that do not require the expensive academic mills as the sole provider of post secondary education.

One thing is certain, the current system cannot continue.

Essentially, Universities are able to subsidize their research activities with undergraduate tuition and fees. On that we agree.

Unfortunately, the real reason this is untenable is that the cost of sustaining these institutions exceeds the wealth available from students and their families. This is only going to get worse, as the wealth generated by Americans is not going to grow at a high rate.

Further, there are a great number of students who are in college who have no business being there. They are either not prepared or not really interested.

We perpetuate this assembly line by telling students that the only path to success and respect is college. This is a huge mistake.

As resources decline, we ought to be setting up technical schools for skills that are essential, but not academic. This includes many automated manufacturing, repair and technician oriented jobs. Many students would find this a better match as well.

AFTER the above institutions, there should be the dis-aggregation the authors describe. BUT, this also means a reduction in the number of institutions, with only the strongest surviving.

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ArchbishopBenevolent
Pre-Approved Saint, Beatific but not Canonical
04:33 PM on 08/13/2010
The current framework for federal funding of research activities in universities has also contributed to the deteriorating quality and cost of higher education.
04:19 PM on 08/13/2010
My undergrad instructors were 80% TAs and 20% faculty who clearly resented the duty. This was while tuition increased 15% per year. (My senior year cost 75% more than freshman year).

I don't know what the solution is, but we better think of one quick unless we want a generation of intelligent 30-somethings putting their lives on hold, unable to afford housing or transportation, or deterred from pursuing their interest in the first place.