Friday, June 23, 2006

Tuition at Public Colleges and Universities: Policy Trends and Projections

Context
The advent of summer brings a renewed round of tuition setting for public colleges and universities nationwide. This year’s round takes place against the backdrop of continued strength in states’ finances translating into further moderation in tuition/fee increases for students and their families. At the same time, upward price pressures on salaries and infrastructure are acting as a counterweight against more softening in rate hikes. Additionally, state policymakers face a growing list of demands for their budget surpluses meaning that higher education leaders must keep their funding expectations in check.

Even with the improved fiscal situation, campus and system leaders, legislators, and governors are viewing tuition and fee policies with ongoing concern and continue to explore policy alternatives to contain rate increases and leverage pricing policies to achieve student access and success. The rising prominence of this issue stems in part from long-standing concerns over state and national competitiveness, but also from political considerations, as college costs and prices are quickly becoming a key “checkbook issue” for middle-class voters. All of this points to a window of opportunity for campuses and systems to review or revise policy and to take steps on the funding front that will make short- and long-term improvements regarding predictability and stability in pricing. That window may not be open for long, though, and policymakers must be prepared to move quickly—and thoughtfully.

Enrollment Trends at AASCU Campuses, 1994-2004

As K-12 schools and the nation continue to expand, state colleges and universities are facing the task of educating a growing number of students. The importance of understanding how our student communities have changed and how they will evolve is unquestionable as leaders in both higher education and legislatures set the foundations for building tomorrow’s colleges and universities.

Context
College enrollment continues to jump leaps and bounds, as the number of students attending public four-year higher education institutions reached 6.8 million in the 2004 academic year. Fueled by significant enrollment increases by minority and female students, as well as recent high school graduates and adult students, the number of students at AASCU campuses across the country increased 13.7 percent over the past 10 years, reaching 3.7 million.



AASCU analyzed the latest year of available data from the U.S. Department of Education to identify enrollment trends among its member institutions. While AASCU institutions differ in size, mission and composition, they can be seen as a bellwether of change for American higher education.

Faculty Trends and Issues

The time is past for a "one size fits all" approach to faculty. If American colleges and universities are to remain strong, they must commit to making academic work financially viable and attractive to the next generation of scholars.
Context
In an issue paper released earlier this month by the U.S. Secretary of Education’s Commission on the Future of Higher Education, Robert C. Dickeson offered harsh criticism of “the unique culture and extraordinary power of the faculty” in higher education. The systems of tenure and shared governance, he argued, run counter to sound business practices and contribute substantially to rising college costs.

The same week, Michael F. Middaugh, director of the National Study of Instructional Costs and Productivity, presented a different picture at the annual meeting of the Association of Governing Boards of Universities and Colleges. “Faculty instruction has been managed and managed well. It’s the other stuff that’s killing us.”

For their part, four-year college presidents weighed in last fall in a Chronicle of Higher Education survey. While inadequate faculty salaries ranked highest on their list of faculty concerns, a majority of presidents surveyed also foresee change in the tenure system.

Because of the unique characteristics of the academy, namely, its labor-intensive nature and its tradition of shared governance, faculty issues are always a matter of great interest and high emotion. As such, it is important for campus and system leaders to understand current faculty trends and their implications.