A Look At The Recession-Proof University

“Let’s be honest. At a research university like Penn State, education just isn’t the primary mission.”

So declared an administrator at Penn State late last year in a private meeting, explaining his view of the real purpose of Pennsylvania’s flagship land-grant university. This was his rather tenuous way of defending the lack of cost controls on tuition and fees.

What has surprised me over the years at Penn State is not so much the amount of institutional waste that exists at an ostensibly non-profit enterprise, but how frank so much of the school’s leadership is in admitting the failure of the institution to mind its founding mission: to provide an liberal and practical education to the working class sons and daughters of the Commonwealth.

The university’s annual budget stands at more than $3.4 billion. Ten years ago, it was barely $2 billion. There are other costs, too, like the interest on the nearly $1 billion worth of debt that the university has accrued over the years, largely as a result of its unending building binge.

And while the research-minded administrator quoted above is wrong about the school’s core mission today, time looks to be on his side. According to a recent policy report by the Commonwealth Foundation, a sizable 30 percent of Penn State’s operating budget in 2006 was devoted to research expenditures.

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The Anti-Stimulus For College Affordability

As Congress wavers on whether to pass an economic “bailout” bill totaling nearly $1 trillion – the largest rescue package of its type in history – American colleges and universities are salivating at the prospect of a massive increase in federal aid.

Strange, then, that this increase in taxpayer funding of higher education will not result in fundamentally better colleges or universities. Our universities and colleges will likely be less affordable and largely the same academically despite this major investment.

First, let’s put things in perspective. In 2006, total federal taxpayer funding of the Department of Education amounted to $166 billion. The American Recovery And Reinvestment Act – the bailout – would nearly double that number, ballooning the budget by another $142 billion over the next 24 months.

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