Budget problems at public colleges and universities have been published in the press for the past year and a half.  Approximately a year or so ago, I decided to collect articles about the situation and organized them on this blog by state under the title Higher Ed’s Economic Challenges.  As the recession continues to impact the value of residential and commercial real estate (or was it the real estate that impacted the recession?), many states’ tax collections are below the level of three or four years ago. 

Unlike the federal government that is allowed to print money, most state constitutions have a balanced budget requirement.  When taxes decrease, expenditures must decrease as well.  K-12 education and Medicaid are two of the largest mandated expenditures at the state level.  Higher education has never been a mandated expenditure at the state level, so when state budgets have to be cut, higher education has usually been one of the first areas impacted.  Some states in some years increase student tuition rather than cut their higher education expense budgets.

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I recently read an interesting article by David Brooks called “The Education Gap.”  Published in The New York Times on September 25, 2005, Brooks talks about the ability of colleges to address the inequities between poverty and wealth.  He points out the fact that only 28 percent of Americans have college degrees but that most of those with degrees find themselves in social situations where almost everybody has been to college.

Brooks notes that behavioral differences are starting to surface between the groups.  According to Brooks, divorce rates are twice as high for high school grads as college grads, high school grads are twice as likely to smoke, high school grads are much less likely to exercise, college grads are twice as likely to vote, college grads are twice as likely to volunteer, and college grads are twice as likely to donate blood.

Brooks maintains that today’s information society has increased the gap between high school and college graduates.  In an information society, a college degree is a must.  Students need to recognize the importance of that as early as ninth grade in order to prepare for college.  Students from families with parents who have attended college have a greater chance of going to college than students from families that don’t have a parent who attended college.  Furthermore, Brooks states that students in the lowest per capita income quartile of the population have an 8.6 percent chance of graduating from college versus students in the top income quartile who have a 74.9 percent chance of graduating from college.

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Last night, President Obama delivered an address to the nation.  He focused on the state of the economy and his administration’s plans for the economic future of our country focusing on energy, healthcare, and education.  I thought I would examine his plans for education as it relates to higher education and compare them to the public policy initiatives and thought pieces that have previously been published.

President Obama’s speech led off with a discussion of the global economy and the fact that “the most valuable skill you can sell is your knowledge.”  One of the first persons to stimulate a national discussion on this topic was author Thomas Friedman with the publication of his book, The World is Flat, in 2005.  Friedman cogently makes the point that technology has opened up the ability for companies to effectively employ engineers from India and China while conducting their business from the U.S.  Friedman also discusses the higher rates of education in countries with former third world status where it is recognized that the ticket to financial success is a good education.

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Public Agenda and the National Center for Public Policy and Higher Education (NCPPHE) recently issued their report entitled Squeeze Play 2009: The Public’s Views on College Costs Today.  Given the state of the economy, Public Agenda and the NCPPHE decided to conduct a survey in December 2008 that they had conducted two years previously for their Squeeze Play 2007 report.

There were a couple of significant findings in this study.  For example, more Americans than ever believe that obtaining a college degree is the only way to succeed in America.  From a low of three out of ten Americans agreeing with that statement in 2000, the number has almost doubled to fifty-five percent, up twenty-four percent in only eight years.  In previous studies, people cited Bill Gates as an example of why you didn’t need a college degree to succeed, but this year’s survey has tipped the balance toward a majority believing that college degrees are a necessity.

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As part of my ongoing review of some of the literature and topics around the affordability of a college education, I happened to find a publication from the National Center for Public Policy and Higher Education entitled The Iron Triangle: College Presidents Talk about Costs, Access, and Quality.  Prepared by John Immerwahr, Jean Johnson, and Paul Gasbarra, the report is about a unique piece of research in which 30 college and university presidents were interviewed for their perspectives on the three major issues of cost, access, and quality of higher education (and, the corners forming the Iron Triangle).

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