October 16, 2005

Public Universities Are Being Increasingly Privatized

Link: At Public Universities, Warnings of Privatization - New York Times.

NYT piece by Sam Dillon, Oct. 16, 2005:

The share of all public universities' revenues deriving from state and local taxes declined to 64 percent in 2004 from 74 percent in 1991. At many flagship universities, the percentages are far smaller. About 25 percent of the University of Illinois's budget comes from the state. Michigan finances about 18 percent of Ann Arbor's revenues. The taxpayer share of revenues at the University of Virginia is about 8 percent.

... The average in-state tuition nationwide for students attending four-year public colleges increased 36 percent from 2000-01 through 2004-05, according to the College Board, while consumer prices over all rose about 11 percent.

...Patrick M. Callan, president of the National Center for Public Policy and Higher Education, a nonprofit group, also said he dislikes the word.

"The air is filled with this rhetoric about privatization, but the evidence doesn't support it," Mr. Callan said. He noted that in straight dollar terms, state appropriations for public universities have not fallen much across the nation in recent years. They totaled $67 billion in 2001, $70 billion in 2002, $69 billion in 2003 and $69 billion in 2004, the last year for which nationwide data is available.

But because enrollments surged during those years by more than 1 million students, or 11.8 percent, per-student appropriations dropped more steeply than at any time since the early 1980's, to $5,721 from $6,874, according to the State Higher Education Executive Officers.

Another measure, the average percentage of state tax revenues devoted to public higher education, has declined for several decades. About 6.7 percent of state revenues went to higher education appropriations in 1977, but by 2000, universities' share had fallen to 4.5 percent, according to a study by the Urban Institute.

Posted by Anupam Chander on October 16, 2005 at 12:50 PM in Current Affairs | Permalink