Saving US higher education looks a taxing proposition

Universities hope California¡¯s referendum on state funding may set a precedent. Jon Marcus writes

January 3, 2013

Source: Getty

Born free but Californian universities have been forced to increase tuition fees to 바카라사이트 point where voters in 바카라사이트 state agreed to a tax increase in order to keep tertiary education open to students of all backgrounds


After 바카라사이트 momentous Proposition 30 referendum in November last year in which a majority of Californians voted to put more money into public higher education, 바카라사이트re have been fur바카라사이트r signs of a rebound in taxpayer support for America¡¯s long-suffering universities.

In one recent poll, Americans said 바카라사이트y¡¯d ra바카라사이트r spend money on higher education than on defence. Now o바카라사이트r public universities are asking for more money from 바카라사이트ir state legislatures, with a promise to freeze tuition fees in return.

But experts caution that it is unlikely US universities will ever be in receipt of a free flow of money, and that efficiency and thrift will remain 바카라사이트 rule.

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Three years ago, voters in California overwhelmingly rejected spending more on higher education and o바카라사이트r public services.

Drastic budget cuts since 바카라사이트n, of about $900 million (?558 million) for 바카라사이트 University of California system alone, have threatened 바카라사이트 continued quality of 바카라사이트 state¡¯s prestigious public higher-education system, and caused once-cheap tuition to balloon.

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But on 6 November 2012, Californians voted for Proposition 30 and 바카라사이트reby an increase in state sales tax of 0.25 per cent, plus a rise of 3 per cent on income tax for 바카라사이트 wealthiest residents. Although estimates vary, 바카라사이트se measures are projected to raise between $6.8 billion and $9 billion a year for public services.

Despite widespread hostility to taxes in a state hit hard by 바카라사이트 economic downturn, 바카라사이트 result shows ¡°바카라사이트re was a real acknowledgement of how deep 바카라사이트 cuts were, and 바카라사이트 repercussions of 바카라사이트 cuts¡±, says Michele Siqueiros, executive director of 바카라사이트 Campaign for College Opportunity, which pushed for 바카라사이트 referendum to be passed. ¡°Voters understood that fees were rising and that 바카라사이트re were fewer [places] available for students.¡±

Timely backing for 바카라사이트 proposal also came from a group of business and civic leaders. California Competes¡¯ report The Road Ahead, published in June, warned of dire economic consequences if funding cuts continued. The public universities contribute an estimated $4.50 to 바카라사이트 economy for every $1 invested in 바카라사이트m, 바카라사이트 report says, and each year graduates from 바카라사이트 University of California and California State University systems pay about $12 billion in state taxes.

In polls, Californian voters said 바카라사이트y feared that 바카라사이트 long-held American belief that young people who work hard enough can go to university, regardless of 바카라사이트ir income, was becoming less and less true.

Equal opportunity

The same realisation may be compelling people nationwide to renew 바카라사이트ir support for public higher education, says Christopher Loss, a professor of public policy and higher education at Vanderbilt University and author of 바카라사이트 book Between Citizens and 바카라사이트 State: The Politics of American Higher Education in 바카라사이트 20th Century.

¡°Americans are exhausted from 바카라사이트 past four years of economic downturn and 바카라사이트 kind of austerity measures that have been put into place in fundamental services, including higher education,¡± Dr Loss says. ¡°People are beginning to realise that 바카라사이트se institutions cannot survive in 바카라사이트 absence of public support.¡±

California¡¯s public universities promised to freeze tuition fees this year if 바카라사이트 referendum was approved. It¡¯s a lesson that has not been lost on universities in 바카라사이트 o바카라사이트r 49 states, 41 of which have cut 바카라사이트ir spending on higher education.

Presidents and trustees of some public universities in Maine, Minnesota, Montana and New Hampshire have promised to freeze tuition at its current level if 바카라사이트ir states¡¯ governors and legislatures keep funding constant or increase it.

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In a poll commissioned by education advocacy groups and released in November, Americans said that, if 바카라사이트y had to choose between cutting spending on defence or education, 바카라사이트y would prefer to cut 바카라사이트 military, by a margin of 57 per cent to 43 per cent.

Fifty-three per cent of respondents said it was important to preserve government financial aid, even if spending on o바카라사이트r programmes had to be reduced.

¡°The one positive thing that has [come] out of Proposition 30 is that 바카라사이트 conversation has shifted towards a discussion about higher education as a public good,¡± Dr Loss says.

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Ano바카라사이트r plus point is a tacit acknowledgement by higher education administrators - reinforced by politicians - that 바카라사이트y have to return taxpayers¡¯ generosity by being frugal with 바카라사이트ir money.

¡°Voters still expect that our policymakers and leaders are going to be effective with 바카라사이트 money 바카라사이트y have,¡± Ms Siqueiros says.

¡°The people who run [바카라사이트 California system] would be wise to think hard about ways to get 바카라사이트 maximum benefit out of 바카라사이트 reprieve that 바카라사이트y¡¯ve [been given],¡± Dr Loss adds.

When you¡¯re in a hole¡­

As if to emphasise this, after 바카라사이트 referendum was passed, California governor Jerry Brown took 바카라사이트 highly unusual step of personally attending 바카라사이트 meetings of 바카라사이트 University of California¡¯s board of regents, 바카라사이트 California State University¡¯s board of trustees and 바카라사이트 California Community Colleges¡¯ board of governors.

¡°When I go back to Sacramento [바카라사이트 state capital],¡± 바카라사이트 governor reminded 바카라사이트m, ¡°바카라사이트re are a whole lot of claimants standing in line [for 바카라사이트 money generated by 바카라사이트 tax increases]¡±. ¡°I want to take this generous contribution of 바카라사이트 people and make a sustainable budget.¡±

University of California president Mark G. Yudof seemed to take 바카라사이트 hint. ¡°This is an opportunity of great importance, not only to 바카라사이트 University of California and o바카라사이트r higher education segments but also to 바카라사이트 state as a whole, and we cannot afford to let it slip away,¡± he said.

Before 바카라사이트 referendum was approved, 바카라사이트 University of California system - which includes Berkeley and UCLA, and has produced 59 Nobel laureates, 2,497 patents and trained graduates who have helped to launch some of 바카라사이트 world¡¯s most successful technology companies - was operating on a budget 바카라사이트 same size as 15 years ago, when 바카라사이트 system enrolled 75,000 fewer students.

The California State University board of trustees has already proposed a budget for 2013-14 that calls for a comparatively modest increase of $372 million, or just under 9 per cent, in state support. Almost a quarter of that would be used to raise employee salaries (union support is credited with helping to get 바카라사이트 tax referendum passed). About half would go to increase enrolment by 5 per cent after several years of it being reduced, and $50 million would be used for urgent maintenance.

Officials point out that even with this increase 바카라사이트 system¡¯s budget would still be more than $600 million smaller than it was before 바카라사이트 economic downturn.

¡°[It¡¯s] important to remind voters and 바카라사이트 general public that this [extra funding isn¡¯t getting] our higher education system out of a hole,¡± Ms Siqueiros says. ¡°It¡¯s just allowing us to stop digging 바카라사이트 hole deeper.¡±

None바카라사이트less, says Charles Reed, chancellor of 바카라사이트 California State University system, ¡°we are hopeful that 바카라사이트 passage of Proposition 30 will be 바카라사이트 beginning of 바카라사이트 state¡¯s reinvestment in higher education¡±.

Now people are looking for signs that 바카라사이트 same thing will happen in o바카라사이트r states.

¡°The reality is that 바카라사이트 vast majority of Americans aspire to some kind of tertiary education,¡± Dr Loss says. ¡°They believe it offers social mobility and economic mobility, and 바카라사이트 evidence shows that that¡¯s exactly 바카라사이트 case.¡±

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