How Much Does a State University Have to Cost?

Every state has a state university system, although that was not always the case. (New York didn’t begin the SUNY system until after World War II, a fact that did not impede the state’s growth and prosperity.) Looking at the financing of those university systems, however, you find great differences in the degree to which they depend on government appropriations. Some states rely heavily on state funding, whereas others have chosen to constrict the money pipeline from the state capital to the universities and depend more on voluntary support.

I was interested in knowing just where North Carolina stands, so the Pope Center did an analysis of the financial data for each state found in the 2004 Almanac Issue of The Chronicle of Higher Education.




Crying wolf on higher education

In a May 1 column in The Oklahoman, University of Oklahoma president David Boren sent up a loud cry of “Wolf!” over the prospect that Oklahoma may do what quite a few other states are doing – shifting some of the burden of paying for the state university system from the taxpayers to students and other parties who are willing to donate money. Mr. Boren finds this “alarming” because it “threatens to close the door of opportunity.”


Paul Krugman’s Fallacious Academic Question

Paul Krugman is a columnist who never passes up an opportunity to throw jabs at those Americans whom he dislikes, a set that comprises anyone who doesn’t accept his big-government philosophy. All the jabbing would be fine if Krugman limited himself to serious arguments, but serious arguments might be too boring for his New York Times editors, so he often resorts to cheap shots and fallacious reasoning. His April 5, 2005 column “An Academic Question” is a case in point. (Site requires registration.)


Does North Carolina Need an Optometry School?

“No one spends other people’s money as carefully as he spends his own.” So says Nobel Prize-winning economist Milton Friedman. Let’s keep that in mind as we consider a new spending proposal being pushed by one of the schools in the UNC system.

The University of North Carolina at Pembroke (UNC-P) has advanced a plan to build a new school of optometry at the geographically remote campus. The budget contains $10 million for the initial planning and development of the project, but no funds can be expended until the UNC president’s office gives approval. A meeting to decide on the plan is scheduled for later this month.




Inquiry Paper No. 20: On the Investment Payoff of Higher Education

A recent paper entitled “The Investment Payoff” purports to identify a number of significant benefits from higher education – increased personal income, lower unemployment, improved health, reduced reliance on public assistance, more volunteerism, and increased electoral participation. Readers are subtly led to conclude that increased spending on higher education would mean more of those desirable benefits. The weakness of the paper, however, is that it merely shows correlations between the group of college degree holders and the favorable outcomes. Policy makers should not be swayed by “The Investment Payoff” into putting additional resources into higher education.


Does Federal Student Aid Help Students – Or Colleges?

One of the most important lessons anyone can learn about politics is that when government sets out to accomplish some objective, it often winds up doing the opposite. Rent control laws, for example, are supposed to help the non-wealthy who want urban housing, but the effect of rent control is to diminish both the quantity and quality of rental housing available.

With that point in mind, let’s consider federal student aid programs. Congress has established a variety of grant and loan programs (budgeted this year at some $73 billion) which were supposed to help make college more affordable to millions of non-wealthy families. As the cost of attending college has risen, politicians have increased the amount of aid available. The trouble is that by doing so, the government gives colleges an incentive to further increase tuition charges.