Costs

American colleges and universities spend billions of dollars a year from state, federal, and private sources. The following articles identify ways to cut costs and ensure that public investment in higher education provides value to students, taxpayers, and society.

Gary Becker and Richard Posner Discuss Student Aid Programs

Dec 5, 2006 ·

Two famous University of Chicago professors, Gary S. Becker and Richard A. Posner have a blog on which a great variety of topics come up for discussion. Becker is the 1992 winner of the Nobel Prize in Economics and Posner is a judge on the 7th Circuit Court of Appeals who has written many books in the field of law and economics. In an exchange posted on December 3, they traded thoughts on the proposals floating in Washington for making student loan programs less costly.

Bi-Weekly Notebook

Dec 1, 2006 ·

RALEIGH – North Carolina Community College System leaders could be paving the way for a future bond referendum with their current budget request.

Leaders discussed the possibility of a bond referendum when approving, in November, a $1.11 billion budget request for the 2007-09 biennium. That budget request also seeks an additional $1.35 billion for capital needs. Vice President for Business and Finance Kennon Briggs admitted that the budget is large and may be unrealistic. Briggs did not say how much a possible bond would be or when the system would attempt a bond package.

“We have to state our case now and continue to pound the message,” Briggs said.

A closer look at the UNC budget request

Nov 30, 2006 ·

When the General Assembly considers the University of North Carolina budget request in January, UNC President Erskine Bowles will once again be at the center of attention.

During the short session this year, Bowles was still in the initial months of his presidency, leading the charge for $299 million in new UNC funding. When the dust settled, Bowles had been able to garner 55 percent of that requested funding, increasing UNC’s general fund appropriation to $2.2 billion. In the months since, Bowles has been heralded for his effectiveness in working with legislators.

Democrats set higher education agenda

Nov 28, 2006 ·

WASHINGTON – Days after securing control of U.S. Congress for the first time since 1994, Democratic leaders in the House of Representatives and U.S. Senate began to formulate their agenda for the upcoming 110th Congress. Among the top agenda items for Democrats are higher education initiatives that could increase federal spending.

Chief among the higher education projects for Democrats is an attempt to make college more affordable by slashing interest rates and increasing funds for Pell Grants. College Republicans cut $12 million from the program to reduce budgetary spending. Other plans include increased funding for teacher education, higher education research, and tax deductions geared towards math, science, technology and engineering students.

Bi-Weekly Notebook

Nov 17, 2006 ·

RALEIGH – University of North Carolina President Erskine Bowles maintained his image of business-like efficiency when he spoke before the Joint Legislative Education Oversight Committee on Nov. 15. Although his chief purpose was to describe the details of the 6.5 percent tuition cap, he made other points about the university administration’s commitment to efficiency, transparency, and accountability. For one, he said that the university has clarified its priorities. Budget requests for the upcoming year take up 32 pages, compared with 347 or 348 last year. Financial aid and faculty salaries top the priorities list.

The University of Illinois’ Global Campus Initiative

Nov 16, 2006 ·

Online education has largely been treated like a stepchild in the world of higher education. It gets a bit of food and some old clothes, but not much attention in comparison with the university’s real children. A new online initiative begun by the University of Illinois, however, may give this Cinderella a more prominent place than it has had before.

Announced last May, the Global Campus Initiative (GCI) is a remarkable university undertaking that should give online education more prominence. What’s more, the GCI is intended to be a profit-making venture and the startup capital will be raised from private sources. The tuition paid by students – and no breaks for Illinois residents – are expected to cover all costs. Implicitly, Illinois is saying, “We think we have an educational product that will pass the test of the market.” Very interesting, especially since several high-profile online education ventures have failed.

BOG OKs 2007-09 Budget Request

Nov 14, 2006 ·

CHAPEL HILL — The University of North Carolina will seek more than $270 million in new funds when the General Assembly convenes in January. UNC’s request, approved Friday by the Board of Governors, is $2.57 billion for fiscal 2008 and $2.63 billion for 2009, and for the first time includes enrollment growth funding ($48 million in 2008), in the expansion budget.

The request focuses on increased funding in what the officials call key areas for the university. The areas include financial aid, student retention, research, improving teacher education, and health care. The five areas comprise 90 percent of the requested funding, BOG member Edward Broadwell said.

The largest single request would fund academic salary increases, a wish-list item that has been a top priority for President Erskine Bowles. UNC is requesting $116 million in 2008 for salary hikes, which represents 43 percent of the requested new funds, Broadwell said. UNC officials want an additional $115 million in 2009.

According to the budget request, UNC officials want to spend more than $87 million of those funds during the biennium to increase salaries to a point where they reach the 80th percentile of salaries among peer institutions. UNC-Chapel Hill would receive more than $20 million, the most of the 16 institutions.

The remainder of the funding for salary increases would go toward a 4 percent merit-based salary increase.

UNC’s next highest request would go toward funding research initiatives at the campus at a rate of $61 million in 2008 and $45 million in 2009. Part of the request, $15 million for each fiscal year, would go toward the creation of what is being called a competitiveness fund. The fund would “support strategic investments in emerging areas of importance to the economic competitiveness of the state,” the request says. Some of the areas include nanosciences, marine sciences, natural products, environmental sciences, informational technology, biomanufacturing, port logistics, marine aerodynamics, and other areas.

The budget request also includes $35.6 million in 2008 and $19.2 million for need-based financial aid. UNC leaders said the need-based financial aid program is $12 million short of being fully funded. The system serves 35,000 undergraduate students from North Carolina.

Panel OKs ECU Dental School

Nov 10, 2006 ·

CHAPEL HILL — A University of North Carolina Board of Governors committee Thursday gave approval to plans for a dental school at East Carolina University. The full Board of Governors will vote today on whether to give final approval to the creation of the state’s second dental school.

Members of the Board of Governors’ Committee on Educational Planning, Policies, and Programs gave unanimous approval to the plan following a brief presentation by Alan Mabe, vice president for academic planning for the UNC system. Mabe’s presentation outlined the plan, accompanied by comments from a review committee that included dental experts from across the nation.

The push for a new dental school has been billed by supporters as an effort to alleviate the shortage of dentists in the state, especially in rural areas. The price tag for a new dental school at ECU is estimated at $90 million.

Coppin State President named Chancellor of NC A&T

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CHAPEL HILL – Coppin State President Stanley Battle was named Friday as the new chancellor of North Carolina A&T during the November UNC Board of Governors meeting. His appointment is effective July 1.

Battle was unanimously approved to lead the Greensboro school just five months after former North Carolina A&T Chancellor Jim Renick resigned to become senior vice president for programs and research for the American Council on Education. Former Fayetteville State chancellor and North Carolina Community College System president Lloyd Hackney will continue to serve as interim chancellor.

UNCG, A&T Eye Nano Program

Nov 9, 2006 ·

GREENSBORO — UNC-Greensboro and North Carolina A&T officials recently submitted a request to the University of North Carolina general administration to operate a school of nanotechnology and nanoengineering.

If approved by the Board of Governors, students would be enrolled starting in the fall 2008. The program would mark the second time the two schools together offered a degree program. The schools already offer a combined master’s degree in social work.

School officials have requested a total of $65 million, including funding for new buildings and other operational costs, from UNC in the 2007-2010 budget for the program. Should the Board of Governors approve the program, its budget would still require approval by the General Assembly.

Nanotechnology is focused on microscopic research and development concepts.