Higher
Education
Partnership
Volume 1 Issue 7
October 1997
In support of and working together with
Alabama A & M Univ
Alabama State Univ
Univ of Alabama
Univ of Ala at Bham
Univ of Ala at Huntsville
Auburn Univ
Auburn Univ at Mtgy
Jacksonville State Univ
Univ.of Montevallo
Univ of North Alabama
Univ of South Alabama
Troy State Univ
Troy State Univ Dothan
Troy State Univ Mtgy
Univ of West Alabama
Inside this Issue
Baker Announces "Let Up" on attacks?
Partnership appreciates good reporting
Impact on Students
Partnership Update |
Impact on Students
Gordon Stone
Executive Director, Higher Education Partnership
Who is the winner if Alabama continues to elect political leaders with
the fundamental belief that higher education is the bad guy on the education
block? The real question is who is the loser? The negative impact of this
misguided leadership is felt by every Alabamian, especially our students.
For Alabama's higher education students, universities provide a place where
bright ideas are merged with ability so that talented individuals receive
the preparation necessary to achieve their goals.
The editor of The Birmingham News, in an editorial printed in early
October, shared his concerns about Alabama political leaders failing to
support higher education. The editor wrote, "After being stung by three
years of cuts and financial stagnation, higher education in Alabama will
have to go to the extraordinary lengths of forming a PAC because Fob James
is no Richard Riley or Lamar Alexander." The editor was referring to
the higher education support of Lamar Alexander, former Tennessee Governor,
and Richard Riley, former South Carolina Governor and current Secretary
of the United States Department of Education. As governors each of these
gentlemen left a stamp of educational support that led to increased opportunities
for their state's students.
As the editor indicated, Alabama has suffered from political leaders
who have taken a destructive approach toward higher education. The implementation
of the James administration's funding cuts has not only wounded the universities;
it has hurt the students who attend them. For example, the state spends
less per student than the majority of the states in the Southeast. In
1996, conservative estimates showed that Alabama spent over $500 less per
student than southeastern average.
When political leaders use the administration's per capita numbers
as a measure of the funding of Alabama universities, they are showing a
lack of concern for our students. They are ignoring the more important measure
of per student funding. The delivery of educational programs that positively
impact the lives of students and meet the state's demand for higher education
should be a primary focus for making funding decisions. Otherwise, political
leaders have missed the point. Per capita figures ignore the impact and
the demand issues.
Does investing in students have a positive impact on the state? One
measure of the quality of the investment is if the return outweighs the
cost. In a 1994 study from Jacksonville State University, the benefits,
measured in tax returns, from Alabama's investment in undergraduate programs
was calculated to be $6.40 returned for every $1.00 spent. Based on
a 40 year working life this is a return of 8% on the university investment.
Investing in students is good for Alabama.
What is the economic impact on students as a result of the higher education
investment? In 1995 the U. S. Census Bureau reported that the average income
for individuals age 18 and over with a high school degree but no college
degree was $27,038. The figures also showed that the average income for
a young person with a four-year degree was $44,523. Currently, the average
income for Alabamians is $19,206. Obviously, the state can look closely
at the impact of the investment in higher education and see that there is
a great need to encourage young people to attend college. According to
a Scripps Howard News Service survey measuring income levels over a lifetime,
the difference in income between a person with a college degree and a person
without amounts to $1 million.
From a demand perspective, why does Alabama need to protect its public
universities? Alabama has a higher percentage of its population enrolled
in higher education than the southeastern average. The state has 90% of
its higher education students enrolled in public institutions. What contributes
to the preference for public universities? 1) Mainly, these universities
are selected because of their quality. They offer excellent instruction,
learning environments and job placement opportunities. 2) A contributing
factor is that the state has fewer private four-year institutions (18) compared
to the southeastern average (29). 3) Another reason for the high demand
for public institutions is that Alabama has a low per capita income and
a high poverty rate (20.7%). The combination of the second highest poverty
rate in the southeast and a low per capita income shows that Alabama is
a relatively poor state. Therefore, Alabama students have a harder time
supporting private institutions since they are typically more expensive
than public institutions.
Is there a direct relationship between funding cuts and the quality
of the higher education investment? After taking into consideration the
benefits derived from public institutions, it is easy to see the danger
of politicians who attempt to reduce public higher education capacity. Over
the past four-years tuition has increased 21% and is increasing again next
year. The administration's plan to cut higher education funding has caused
this tuition, also known as a tax, increase to be levied on Alabama students,
parents and/or families. Political leaders, who support reduced funding
for higher education, are creating scenarios where many Alabamians will
not be able to afford college.
In an article in an October issue of the Birmingham Post Herald, economist
Michael McPherson said that the trend of state governments to tighten
the belt on higher education funding might have more serious consequences
than the public realizes. He said there is a danger that low-income
students will face a financial squeeze. The underfunding which forces state
universities to raise their tuition makes it even harder for poor students
to be able to afford college. The article explains that "increasing
costs (of attending an Alabama university) have prompted warnings that the
state is nearing a point where it becomes more difficult for the poor, and
even members of the middle class, to send their children to school."
The previously mentioned Scripps Howard survey suggested that as the
costs for education increase, new graduates are seven times more likely
to find themselves facing college debt than the generation after World War
II. According to the article, recent compilations show the total number
of college loans jumped 78% in just two years. This equated to $7.7 billion
in 1995, which was more than the public debt of half of the nations on earth.
Michael McPherson stated that another danger facing students is that
lower appropriations lead to erosion of quality at the public institution.
For example, faculty members are disgusted with three consecutive years
of no raises or raises so low they do not keep pace with inflation. The
result of this disgust is an increased likelihood that the good faculty
members will leave for better paying jobs. The "brain loss", when
bright, successful faculty members leave the state, is an obvious erosion
of quality.
Who is the loser if Alabama continues to have political leaders who
have the fundamental belief that the state's universities are over funded
and need to be cut back? Students, parents, and families are losers. Alabamians
who care about our students are encouraged to carefully examine the fundamental
beliefs and long term plans of political leaders before electing and/or
reelecting them. Over the last few weeks, the administration has suddenly
voiced a desire to change its outward approach toward higher education.
However, higher education supporters must be careful. Unless the fundamental
beliefs of the administration and their legislative supporters have changed,
then higher education must be leery. Be cautious and stay informed. Call
the Higher Education Partnership for more information (334-832-9911).
P. O. Box 761, Montgomery, AL 36101-0761
334-832-9911Fax
334-832-9995