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February 2, 2010

Spending on education Investing in brains

The Economist:

IN CALIFORNIA the students are revolting--not against their teachers, but in sympathy with them. The state's governor, Arnold Schwarzenegger, has cut $1 billion, some 20% of the University of California's budget, as he tries to balance the state's books. Fees may rise by a fifth, to over $10,000. Support staff are being fired; academics must take unpaid leave.

That is part of a global picture in which cash-strapped governments in the rich world are scrutinising the nearly 5% of GDP they devote to education. Those budgets may not be the top candidates for the chop, but they cannot fully escape it.

Just before Christmas the British government said it planned to reduce spending on higher education, science and research by £600m ($980m) by 2012-13, just as a chilly job market is sending students scurrying to do more and longer courses. The trade union that represents academic staff claims that up to 30 universities could close with the loss of 14,000 jobs. A House of Commons select committee is investigating the effects on British science.

Even where education spending has not been slashed, it may face a squeeze as short-term stimulus spending ends. America's $787 billion Recovery Act passed by Congress nearly a year ago included $100 billion for education. More than half is to be spent this year, meaning that the budget will have to be cut in 2011. A study by the Centre for the Study of Education Policy at Illinois State University, published on January 18th, found that half of American states will have spent all of their stimulus money for education by the end of July. Cuts will follow. Privately funded schools and colleges have seen their endowments and donors' enthusiasm wither.

Posted by Jim Zellmer at February 2, 2010 3:11 AM
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