The University as a Money Funnel
One serious problem with American higher education is that the cost of a four-year degree is higher than ever—even when adjusting for inflation. The causes of this increase are well known and well understood—there is no mystery about this. One contributing factor is that universities tend to spend considerable money on facilities that are not connected to education. Critics like to, for example, point out that some universities spend millions on luxurious fitness facilities. These sort of expenditures are ironic (and stupid) given that education funding has been consistently reduced across the United States. To use the obvious analogy, this would be like a family putting in a pool, spa, and exercise room when they do not have enough money to pay for their actual necessities.
What seems to be the major factor contributing to costs is the ever-expanding administrative class at universities. This expansion occurs in terms of both individual salaries and overall numbers. From 2000 to 2010 the median salary for the top public university administrators increased by 39%. The top administrators, the university presidents, enjoyed a 75% increase. In stark contrast, the salaries for full-time professors increased by almost 19%.
The money for these salary increases has to come from somewhere and an obvious source is students. My alma mater Ohio State University is leading the way in milking students to pay administrators. Between 2010 and 2012 Gordon Gee, the president of OSU, was paid almost $6 million. At the same time, OSU raised tuition and fees to a degree that resulted in student debt increasing 23% more than the national average.
While some might be tempted to attribute this salary bloating as the result of the usual alleged wastefulness and growth of the public sector, private colleges and universities topped their public counterparts. From 2000 to 2010 private schools saw salary increases of about 97% for their top administrators and their presidents enjoyed a 171% increase. Full time professors also partook of the increases—their salaries increased by 50%.
What is even more striking than the salary increases are the increase in the number of positions and their nature. From 1978 to 2014 administrative positions skyrocketed 369%. This time period also marked a major shift in the nature of faculty. The number of part-time faculty (the analogues of temp workers in the corporate world) increased by 286%. The use of adjuncts is justified on the grounds that doing so saves money. While adjunct salaries vary, the typical adjunct makes $20,000-25,000.
However, the money saved does not translate to a lower cost of education—rather, it “saves” money from going to faculty so that it can go to administrators. Since the average salary of a university president is $478,896 and the number of presidents making $1 million or more a year is increasing, it should be obvious what is helping to drive up the cost of college. Hint: it is not adjunct pay.
There was also a push to reduce (and eliminate) tenured positions which resulted in an increase in full time, non-tenure earning positions by 259%. Full time tenure and tenure-track positions increased by only 23%. Ohio State University provides an excellent (or awful) example of this A&A Strategy: the majority of those hired by OSU were Adjuncts and Administrators. To be specific, OSU hired 498 adjunct instructors and 670 administrators. 45 full-time, permanent faculty were hired.
Interestingly enough, the Republicans who run many state legislatures rail against wasteful spending, impose micromanagement and inflict draconian measures on state universities yet never seem to address the real causes of tuition increase and the problems in the education system. Someone more cynical than I might note that the university seems to no longer have education as its primary function. Rather, it is crafted to funnel money from the “customer” and the tax payer (in the form of federal student aid) to the top while minimizing pay for those who do the actual work.
Tenure has been a target in recent years because tenure provides faculty with protection against being fired without cause (tenured faculty can be fired—it is not a magic shield). This is regarded by some as a problem for a variety of reasons. One is that tenured faculty cannot be let go simply to replace them with vastly lower paid adjuncts. This, obviously enough, means less money flowing from students and the state to administrators. Another is that the protection provided by tenure allows a faculty member to be critical of what is happening to the university system of the United States without running a high risk of simply being let go as a trouble maker. As you might guess, I am a tenured full-professor. So, I can use my freedom of speech with rather less fear of being fired. I also enjoy the dubious protection afforded by the fact that people rarely take philosophers seriously.