Confronting Our Permanent Public University “Austerity”

Chris Newfield:

This post focuses on the University of California’s budget situation, but it is broadly applicable to public colleges and universities across the country. More evidence of the national pattern came in this week, with reports of Moody’s negative outlook on higher education’s finances. The Chronicle of Higher Education’s Don Troop provided highlights of Moody’s view of the overall sector. UC reflects the convergence of all but the fourth of these trends.
 Growth in tuition revenue remains stifled by affordability concerns, legislative ceilings on tuition levels, and steep competition for students.
 State financing of higher education will increase, on average, just 3 to 4 percent—not enough to meet the growth in expenses.
 Already stiff competition for sponsored-research dollars is getting stiffer, with success rates for proposals dropping from 19 percent in 2008 to below 15 percent last year.

Fascinating given the tuition cost + student loan explosion.