another problem with higher education subsidies
Subsidies for higher education = the state loses money every time someone in-state goes to a public university.
So what is the state tempted to do in lean budget times? Cap enrollments to limit the budget damage.
The story from Nancy Rodriguez in the C-J...
Kentucky university presidents say additional cuts in state funding will mean fewer faculty, scholarships and student services. On some campuses, it could also mean enrollment caps, making it harder for Kentucky students to enroll....
"What choice do we have? We have to be honest with people. We're not going to compromise quality at WKU," [President] Ransdell said. "You cannot continue to cut your budget and return money to the state … and still grow."
posted by Eric Schansberg @ 10:06 PM
3 Comments
3 Comments:
The state loses money for every in-state student in a public university. But does this count the increase in income tax revenues resulting from the higher incomes that college-educated citizens earn?
Nope. A good question, though.
You'd have to discern the proportion of those who would not obtain a college education if the subsidies were removed. I don't know the literature in that research area very well-- except that the demand for college services is quite inelastic with respect to tuition. So, I would expect that effect to be modest.
>You'd have to discern the proportion of those who would not obtain a college education if the subsidies were removed.
That's a good point. Currently, there aren't any real financial barriers for students to go to college. Elite private schools give lots of financial aid, and schools like IU Southeast have subsidized tuition that is low enough for working class students. I would be distressed if access to higher education were ever denied to able students simply due to poverty, since nothing would be more unfair in a meritocratic society. If for some reason, access to higher education had to rationed, I would prefer a system that rationed on the basis of academic ability rather than poverty.
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