A colleague of mine sent me a link to an article on Yahoo!, “The secret reasons for tuition hikes.” This ties in well with an article that was posted in the comments earlier in the week, the NYTimes piece “Students Covering Bigger Share of Costs of College.” As the NYTimes put it, “The study, based on data that colleges and universities report to the federal government, also found that the share of higher education budgets that goes to instruction has declined, while the portion spent on administrative costs has increased.”
“The study,” by the way, is from The Delta Project on Postsecondary Education Costs, Productivity, and Accountability. I haven’t read the study, though it looks like it might be interesting for folks into this sort of reading.
The Yahoo article lists several reasons the study finds for the tuition increases; two I find interesting include:
The main reason tuition has been rising faster than college costs is that colleges had to make up for reductions in the per-student subsidy state taxpayers sent colleges. In 2006, the last year for which [Jane Wellman, who authored the report] had data, state taxpayers sent $7,078 per student to the big public research universities. That’s $1,270 less (after accounting for inflation) than they sent in 2002.
and…
Increases in spending were driven mostly by higher administration, maintenance, and student services costs. Public universities spent almost $4,000 per student per year on administration, support, and maintenance in 2006, up more than 13 percent, in real terms over 1995. And they spent another $1,200 a year on services such as counseling, which was up 23 percent. Meanwhile, they spent about $8,700 a year on classroom instruction for each student, up about 9 percent.
