Ivory Tower Can’t Blame State Taxpayers

In a House Education and Labor Committee hearing yesterday, higher education experts asserted that schools have had to constantly raise tuition well in excess of inflation because states keep short-changing them on funds. Indeed, Cal State Long Branch President F. King Alexander suggested that in order to rein in costs, Washington should cut higher ed funding to states that cut their own funding. In other words, he said that the feds should only lavish more taxpayer money on universities in states that themselves lavish more taxpayer money on them.

The problem with the “states are cheap” argument is that it’s utterly false. Public college prices have risen at the same time that state and local funding has grown.

Let’s look at absolute state and local funding. Using the latest available federal data and adjusting for inflation, state and local spending rose from $40.1 billion in the 1980-81 academic year to $69.9 billion in 2000-01, a 74 percent increase. According to data from the College Board (figure 6 in the linked report), during that same period the inflation-adjusted published cost of tuition, fees, room and board (TFRB) at four-year public institutions rose from roughly $7,000 to about $10,000, a 43 percent increase. So prices at public institutions rose at the same time state and local appropriations were increasing.

Perhaps, though, funding is a problem of reductions in spending per-pupil. Perhaps state and local support has risen, but not kept up with increasing enrollment. Using data from the State Higher Education Executive Officers (figure 3 in the linked report) we see that there is a little more support for the ivory tower’s complaint that schools just don’t get enough public funding — but not much more. State and local appropriations are clearly cyclical, rising as a result of good economic times and decreasing in response to bad. But it is also clear that there has not been a general decline in state and local funding per-pupil. Indeed, in the 1980-81 to 2001-01 period we explored earlier, the SHEEO data show that inflation-adjusted public funding per full-time equivalent student rose from $6,517 to about $7,371, a 13 percent increase.

So what does all this tell us? Pretty simply, the same thing former Harvard University President Derek Bok wrote in his book Universities in the Marketplace: “Universities share one characteristic with compulsive gamblers and exiled royalty: there is never enough money to satisfy their desires.” Including, especially, taxpayer money.

Tales from the Clinton Dynasty

Nina Burleigh, who covered the Clinton White House for Time and who once said of President Clinton, ”I’d be happy to give him [oral sex] just to thank him for keeping abortion legal,” reviews a new biography of Bill and Hillary Clinton in the Washington Post. She writes, “The details are riveting as ever. Who can get enough of POTUS sweating on the phone at 2 a.m. with a love-addled 24-year-old woman, placating her with job promises, knowing his world is about to explode as surely as a Sudanese powdered-milk factory?”

It seems a cavalier way to refer to the bombing of a factory in a poor country, a factory that was not in fact making nerve gas, and a bombing that happened suddenly, just three days after Clinton’s traumatic speech to the nation about the Monica Lewinsky scandal. Critics suggested that he wanted to change the subject on the front pages. Bombings aren’t funny, and Burleigh’s jest does nothing to put to rest the cynical, “Wag the Dog” interpretation of Clinton’s action.

Medical Marijuana

Three views on medical marijuana. 

For Drew Carey, click here.  (recommended)

For Mitt Romney, click here.

For Rudy Giuliani, click here.

More here.  I should also note that after California voters approved a medical marijuana referendum in 1996, Bill Clinton and Janet Reno vowed to enforce the federal law.  They stepped up the DEA raids and Bush continued the policy.

Why a Government Spending Freeze is Incomprehensible to Bureaucrats

In today’s Washington Post, columnist David Ignatius takes Congress to task for its failure to pass the appropriations bills – and not just this year but almost every year since 1977.

“The talk among some of my government buddies this week was an obscure term of federal budgeting known as a “continuing resolution.” This is what Congress passes when it hasn’t gotten its act together to pass a real appropriations bill before the start of a new fiscal year. The ‘CR,’ as it’s known, allows agencies to continue operating at the same spending level as the previous year. But it plays havoc with normal management functions such as planning and contracting.”

“[University of Maryland political scientist Roy T. Meyers] summarized the inefficiencies that result from having to run an agency without knowing your budget. ‘When regular appropriations are delayed, uncertainty about final appropriations leads many managers to hoard funds; in some cases, hiring and purchasing stops.’” [Emphasis mine.]

I don’t really have a problem with Congress getting very little done.  And I kinda like CRs, especially if they last all year.  Those sorts of CRs dramatically limit spending, as evidenced by the just-lapsed fiscal year. The budget won’t grow until Congress passes all the appropriations bills.  That’s probably what Ignatius and his “government buddies” don’t like.

When Congress passes a CR, it’s wrong to say that an agency head won’t know what his likely budget will be.  He knows exactly what it will be: last year’s spending level.  This simply means managers have to live within the constraint of a budget that isn’t higher than last year’s.

Of course, businesses have to deal with this sort of thing all the time when their profits dry up.  Perhaps it should be no surprise to the cynical that government bureaucrats – who have a guaranteed “customer base” (read: taxpayers) because anyone who doesn’t “buy” their product (read: tax evaders) can be arrested – don’t like to deal with it.

Price Gougers Pack It In

Third quarter profit statements are rolling out, and - what do you know - the Big Oil lions appear to be lying down with the consumer lambs. ExxonMobil’s profits are down 10% from a year ago. British Petroleum’s are down 29%. ConocoPhilips’ is down 5%. Only Royal Dutch Shell is reporting an increase in profits over the 3rd quarter last year (up 16%), but the company cautions that those figures are not as impressive as they might appear.

This is all the more remarkable because all during the 3rd quarter, crude oil prices were going up, not down. Those of you who are card-carrying members of the Big Oil Conspiracy Society have some explaining to do.

Topics:

Freedom for Kareem November 9

November 9 will mark 1 year in jail for an innocent young man, sentenced to four years in prison for expressing his opinions on his blog.

Raja Kamal of the University of Chicago and I told the story in “Freedom for an Egyptian Blogger and Freethinker” last February in the Washington Post. You can get more details, including how you can help take part in a dignified protest for human rights, write letters to Egyptian officials, and more, at www.freekareem.org.