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Stop Starving Public Universities and Shrinking the Middle Class

Posted: 02/29/2012 11:32 am

Last week Rick Santorum called the president "a snob" for wanting everyone to get a college education (in fact, Obama never actually called for universal college education but only for a year or more of training after high school).

Santorum needn't worry. America is already making it harder for young people of modest means to attend college. Public higher education is being starved, and the middle class will shrink even more as a result.

Over just the last year 41 states have cut spending for public higher education. That's on top of deep cuts in 2009 and 2010. Some public universities, such as the University of New Hampshire, have lost over 40 percent of their state funding; the University of Washington, 26 percent; Florida's public university system, 25 percent.

Rising tuition and fees are making up the shortfall. This year, the average hike is 8.3 percent. New York's state university system is increasing tuition 14 percent; Arizona, 17 percent; Washington state, 16 percent. Students in California's public universities and colleges are facing an average increase of 21 percent, the highest in the nation.

The children of middle and lower-income families are hardest hit. Remember: The median wage has been dropping since 2000, adjusted for inflation.

Pell Grants for students from poor families are falling further behind; they now cover only about a third of tuition and fees. (In the 1980s, they covered about half; in the 1970s, more than 70 percent.)

Student debt is skyrocketing -- the New York Federal Reserve Bank estimates it at $550 billion. Punitive laws enforce repayment, and it's almost impossible to shed student loans in bankruptcy. There is no statute of limitations for non-repayment.

And yet, Santorum's rant notwithstanding, good-paying jobs in America are coming to require a college degree. Globalization and rapid technological change are putting a premium on the ability to identify and solve new problems. A college degree is also a signal to prospective employers that a young person has what it takes to succeed.

That's why the median annual pay of people with a bachelor's degree was 70 percent higher than those with a high school diploma in 2009 (the latest Census data available).

But public higher education isn't just a private investment. It's a public good. Our young people -- their capacities to think, understand, investigate, and innovate -- are America's future.

We used to understand this. During the great expansion of public higher education from the 1950s to the 1970s, tuition at public universities averaged about 4 percent of median family income (compared to around 20 percent at private universities).

Young Americans received college degrees in record numbers -- creating a cohort of scientists, engineers, managers, and professionals that propelled the economy forward and dramatically expanded the middle class.

But starting in the 1980s, as in so many other areas of American life, we took a U-turn. Tuition at public universities began climbing. By 2005, it was more than 10 percent of median annual family income. Now it's approaching 25 percent -- still a good deal relative to private universities (where it's nearly 70 percent), but high enough to discourage many qualified young people from attending.

Public higher education has been the gateway to the middle class but that gate is shutting -- just when income and wealth are more concentrated at the top than they've been since the 1920s, and when America needs the brainpower of its young people more than ever.

This is nuts.

What's the answer? Partly to make public universities more efficient. Every bureaucracy I've ever been associated with (and I've been in some very big ones) has some fat to be trimmed. Yet universities are necessarily labor-intensive enterprises; research and teaching can't be outsourced abroad or turned over to computerized machine tools.

Another part of the answer is to raise tuition and fees for students from higher-income families and use the extra money to subsidize medium and lower-income kids. Even now relatively few pay the official sticker price; many receive some discount proportional to family income. But this won't solve the underlying problem, either.

A big part of the answer has to be more government support for public education at all levels. This requires more tax revenues -- especially from Americans who are best able to pay.

Most Americans still believe in the ideal of equal opportunity. And most harbor the patriotic notion that we have responsibilities to one another as members of the same society.

The two principles lead to an obvious conclusion: America's richest citizens have a duty to pay more taxes so kids from middle and lower-income families have chance to make it in America.

A pending initiative in California would raise taxes on millionaires and use the proceeds to fund public education at all levels. It's a good idea, and it comes at the right time. Other states should follow.

Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.

 
 
 

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Last week Rick Santorum called the president "a snob" for wanting everyone to get a college education (in fact, Obama never actually called for universal college education but only for a year or more ...
Last week Rick Santorum called the president "a snob" for wanting everyone to get a college education (in fact, Obama never actually called for universal college education but only for a year or more ...
 
 
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iridium53
Semper Fi
02:02 PM on 03/05/2012
It seems to me that this failure is the result of critical systems thinking.

Assumptions:
Employers need trained employees.
The US needs employers to thrive with trained employees to grow.

There is a lot of magical thinking of late in the Republican / Tea Party / Corporate world.

If we cut education so that, in the short-term, we can cut taxes - then we are unlikely to produce the student outcomes we need to produce well-trained employees.

If, instead, we raise taxes and apply those taxes to growth strategies like education (and infrastructure, but that's another subject), then we increase the probability of producing a good outcome - trained employees that can help American industry thrive.

Relatively straightforward input-process-output.

Racially prejudiced and poverty biased thinking from Tea-Publcians that want to move education to local schoolboards underestimate the inconsistency that would create.

Seems to me that we're headed in the wrong direction under this Tea-Publican ideology - instead of cutting education we should be spending more.

Of course, that would mean violating the Norquist pledge.

But, if government does not work to produce adequately trained employees, who will?
12:33 AM on 03/05/2012
The issue becomes how much central planning the governments get to do. In communist countries, the state tells you your occupation. We should not order kids to careers, but we know underwater basket weaving and the arts are not going to drive the new economy. So there should be massive subsidies. But gone are the days where we can afford to subsidize everything. If a kids wants to do Math, Science, Engineering, or especially Chemistry, and can maintain a 3.5 GPA, then as a society we have an obligation to get behind America's best and brightest. Art is an opinion thing. Science can be abstract but our chances as a country are much better if we have thousands of chemists, scientists, and doctors as opposed to thousands of poets. Without a ton of central planning we can shift our resources so that we are not spending tax dollars for four years of student partying. The answer is simple. The answer favors neither progressives nor conservatives. American tradition is we reward the best and brightest. All we need to do is get back to rewarding the great minds that have the discipline and ability to help keep America on top when it comes to innovation and technology.
06:21 PM on 03/07/2012
But "American tradition" also tells us that among the "best and the brightest" were thinkers, writers, poets and artists who add more than merely technology. We most definitely need the mathematicians, engineers and scientists, but we also need the "future thinkers" to come up with the broad picture, the language that describes what the issues and problems are that need solving by technology. Technology alone will not move us forward.

Besides, this is not an either/or situation. It's not like we are producing "thousands of poets".
12:28 AM on 03/11/2012
In florida, the Legislature just cut 300 million from college aid programs. Gone are the days when we could throw money at every kids who thinks about going to college. In these hard times, we need bang for our tax bucks. If you want to be an English major (like me) fine. But you need to pay for it. If you want to be a doctor, a scientist or a chemists, it's obvious that we taxpayers need to get behind that set of people because they are a future industries. We don't have endless supplies of money, so we have to choose. The business world is already choosing the STEMS people. Our spending on college students should be tied to the real world and what will most benefit the country. Everyone's a writer today because of the internet. We need science people. Our college aid policy should reflect a shrinking pool of money and our increasing need for people who like math and science.
02:50 PM on 03/23/2012
Did you skip history? America has a very long tradition of disliking/distrusting intellectuals. We may not be producing "1000's of poets" but we are producing way to many with BA's in soft majors like Journalism, psychology, Art, & Ethnic Studies. Exposer to Journalism, psychology, Art, & Ethnic Studies is a good thing but you should think twice before you go out and borrow thousands of dollars to buy an education with limited value
iridium53
Semper Fi
12:42 PM on 03/03/2012
Is there a study, with graphics, of just how the tuition and fees of public universities has changed since, say 1980?

How affordable the total university experience - tuition, fees, books, housing - is, at say, UC Berkeley or UCLA, for the California family?

Or, the California State University system?

One also wonders what the effect of cutting off educational opportunities to the poor, and especially to the lower middle class that are totally shut out of help - will do to the economic mobility and long-term competitiveness of America and California.
06:15 PM on 03/07/2012
I don't know about a study, but I can tell you that when I first went to Cal (UC Berkeley) in the early 70's, they were on a quarter system and tuition seemed to be about $230 per quarter. I went back in the early 1980's and they were on the semester system then (Reagan was governor by the way) and tuition had gone up to about $750 per semester. It seemed like a large jump at the time, especially as I had no support, grant or otherwise, to help pay for it.

Another issue which is not being disucssed is the difficulty for local California kids to just get into a school like Cal or any other California 4 year college. During the 70's as a local suburban Caucasian girl, I was able to get into Cal with a B+ average, an impossibility today. I have heard from so many families whose kids are just trying to get into any public place (the private 4-year's are not even discussed due to prohibitive cost), entrance is severely limited due to cost cuts and resultant crowding.
07:13 PM on 03/23/2012
ehorth, Jerry Brown, the same fool we recently reelected was governor in the early 1980ies, he served from 1975 to 1983. In the early 1970ies Reagan was the governor, he served from 1967 to 1975. Maybe you don't remember but inflation took off in the 1970ies & combined with the sluggish growth that occurred because of the 2 oil shocks (the Arab embargo after Yom Kipper and Iran in 1979) caused what came to be called stagflation. You mention that "During the 70's as a local suburban Caucasian girl, I was able to get into Cal with a B+ average, an impossibility today" and that might be true but it's not the full story. The explosion of AP classes in the 1980ies and 1990ies have caused massive grade inflation. Back in 1970 a 4.0 GPA was as good as you could get. However, in 2012 with all of the AP classes available you might be able to pull off a 5.0 GPA if you really work it.
03:57 PM on 03/02/2012
Public universities are being starved. What a crock. The university of Florida, one of the schools mentioned facing cuts, has an annual budget of $4.3 billion. You know because it takes $86,000 per student to educate them. A cost that rises much faster than inflation. This while technology makes it easier and easier to get information to people. No, no they need all those fancy new buildings and everything else they waste money on.
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Geoprof
02:16 PM on 03/07/2012
I think you are confusing the University of Florida and the University of Florida system, which is made up of numerous campuses. Also keep in mind that the annual budget of a university includes tuition and fees, indirect from research grants, donations, and contracts in addition to the money from a state's general fund. The reality is that the contribution from the state general fund has been shrinking dramatically over the past decade nationwide.
02:29 PM on 03/07/2012
No, that is the budget for just the University of Florida. I looked it up on their website. $86,000 per student. Which is absolutely absurd.
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Bill Pilgrim
The Ten Cannots: Words to live by.
11:57 AM on 03/01/2012
There are so many programs and giveaways that the small portion of students truly paying their own way pay way more than they should because there tuition is being used to subsidize others. We have created a colossal entitlement with in our education system that is not sustainable. We now have a situation where those on the receiving end outnumber those paying for it
06:24 PM on 03/07/2012
Don't you believe it. Most families I know are paying for their children's college. They may receive some help, but the costs are constantly increasing. Also, what do you mean by "colossal entitlement within our education system". Education is NOT an entitlement - it is a necessity.
11:05 AM on 03/01/2012
So Occupy the administrative offices of the university, it's their fault. We cant mindlessly and enedlessly keep throwing money their way. Reality has to set in with folks at some point,,right?
08:33 AM on 03/01/2012
Education at state universities and colleges should be free, as they are "public" just as public high schools are free. There is no good reason why 12th grade is free, but what is in effect the 13th grade costs $thousands.
07:52 AM on 03/01/2012
If the evil jerks who run college football would allow it, many large state schools could be pulling in millions more per year if they just blew up the current bowl system. Again, this isn't a fix for everyone but in places like Michigan, West Virginia and other states where times are tough and have money making programs that would pay for a lot of kids to get a degree.
07:35 AM on 03/01/2012
Robert Reich

Stop Starving Public Universities and Shrinking the Middle Class

Our crack Governor and his team of really up and coming geniuses have chosen to take on the University system here in Maine. This is the CEO of a successful chain of salvage stores that are about as much fun to shop at as pumping out cesspools. Our cherished bagger claims that we are not educating for the work force. He is correct if he means that we should be educating people only to stock shelves. True that many engineers and and IT people leave the state,in a brain drain. Race to the bottom.
07:33 AM on 03/01/2012
Education is absolutely important to ones future and personal growth. The problem is not everyone wants to work at it. We are currently blaming teachers but the problems rest on the kids and more so the parents. Many jobs do not require a higher education or even a complete high school education. If a child does not see the value and the parents (if available or even care) can’t instill the importance in maximizing their education then why are we forcing them to higher education? If a child does not want to work at advancing their basic classes i.e. reading, writing, math and science then why not put additional resources toward the trades. Not all people are college bound. Furthermore, a four-year degree teaches only the basics. You learn more on the job in the first year than you learned in four at school. It is the goal, accomplishment, and work ethic that opens doors not the basic skills you learned. Our country is spending way beyond our means and if we can’t stop sending it overseas then we have to cut back on everything. Lets get our priorities straight not our ideology. We can do it in positive ways. Make your children go to school and stop giving them everything they need, “teach” them to earn it.
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07:30 AM on 03/01/2012
"A big part of the answer has to be more government support for public education at all levels. This requires more tax revenues -- especially from Americans who are best able to pay."

Of course nothing in the article about why college costs have skyrocketed at a rate that far exceeds cost of living increases...
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Bill Pilgrim
The Ten Cannots: Words to live by.
12:01 PM on 03/01/2012
More Taxes. Can somebody please tell me how much of my pay check I should be able to keep, come on somebody show some stones and give me a number?
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Michael Briggs
Liberal is Better
08:35 PM on 03/01/2012
More importantly, how little are you willing to pay to keep our society functioning? Come on, show some stones and give us a number.
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Bill Pilgrim
The Ten Cannots: Words to live by.
11:29 AM on 03/03/2012
Between state, local and the feds i am paying half of what I make in taxes. I think that's more than my fair share
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The Ben Bernanke
AMI (American Monetary Institute)
07:24 AM on 03/01/2012
An educated workforce is an investment in our future...right now the only "investing" we do as a country, is to increase the bottom lines of private for-profit corporations..it's time we start investing in the common good again...
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Michael Briggs
Liberal is Better
08:36 PM on 03/01/2012
Bravo! An investment in education is an investment in America's middle class. Well said!
04:20 AM on 03/01/2012
Let's see...Bobby sees a problem and proposes a solution: SPEND, SPEND, SPEND.

Didn't see that coming.

Interesting, isn't it, that the liberal solution to any problem NEVER includes taking personal responsibility.
07:36 AM on 03/01/2012
luapmi2

Interesting, isn't it, that the liberal solution to any problem NEVER includes taking personal responsibility.

How much does pimping pay?
03:35 PM on 03/01/2012
ask a liberal
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Michael Briggs
Liberal is Better
08:37 PM on 03/01/2012
And yet it's the conservative, Republican presidents that run up the deficit. Just how do you explain that HUGE lack of responsibility?
03:59 AM on 03/01/2012
What happens to the US as an increasing percentage of the world's population becomes better educated than the average citizen in ours?
03:34 AM on 03/01/2012
But starting in the 1980s, as in so many other areas of American life, we took a U-turn. Tuition at public universities began climbing.

Reagan Revolution
06:35 PM on 03/07/2012
Absolutely!