Productivity And Cost
Containment in Public Higher Education:
An Apologia, or "So What Else Is
New?"
D. Bruce Johnstone
State University of New York at Buffalo
Back to Dr. Johnstone's readings
Public higher education, so it would seem, has just discovered, or
is just about to have forced upon it, cost containment. The image of
public colleges and universities as conveyed in recent articles and
stories, is of institutions that have grown fat and complacent on
hefty public appropriations and tuitions, and that have resisted the
tough measures of cost containment so familiar to private industry.
The reasons for this image, which I will argue to be
overwhelmingly wrong, are several. People seem to be angry at high
tuitions and high per-student costs in our high-priced private
colleges and universities -- even though parents have been eagerly
lining up to pay the heavy freight -- and some of this anger, whipped
up by former Education Secretary William Bennett and his followers,
has been extended to the public sector, as well, even though its
per-student costs, faculty-student ratios, and other measures of
"productivity" tend to be far leaner, at least on the average, than
those of the pricey private sector. There is also an unflattering and
misleading, but unfortunately common, image of professors with
minuscule teaching loads ignoring their undergraduate students and
spending their time in silly research or self-serving consultancies,
even though the possibility of such abuse, assuming a corrupt
professoriate and incompetent administration, emerges only in those
research universities wealthy enough to afford such attractive
conditions of employment to begin with. Finally, recent press
attention given to much ballyhooed cost containment reports at the
University of Michigan, Stanford, Colombia, and elsewhere have
conveyed to some a sense that other universities and colleges not so
in the news must have not yet heard of, or recognized the need for,
cost containment or not yet found the will to begin it.
Our critics, like the good debaters that many of them are, often
attempt to cut off any defense by including in their attacks the
charge that we can be expected to be "defensive," and that the
listener or reader, forewarned, should be prepared to dismiss our
protests and rest assured that we are, indeed, guilty of profligacy,
complacency, and cost-plus pricing, all the more so if we rise to our
defense.
Fiddlesticks! Some of us are defensive because we believe much of
the criticism to be simplistic, mainly wrong, unproductive, and
conducive to bad public policy. Consider the following admittedly
defensive points:
- The recent criticism of higher education has conveyed almost
no sense of history. To ignore the wrenching retrenchments and
downsizing that took place in New York State, New York City,
Michigan, Minnesota, Washington, and so many other states in the
1970s and early 1980s and to treat "cost containment" as a concept
new to the experience of public higher education is to jeopardize
all credibility. These experiences of the past do not in
themselves, of course, prove that today's institutions are as
productive as they can be or may need to be. But they do suggest
that "cost containment" is, in fact, a depressingly familiar
experience, whose time has come and gone and may well come again.
Its old wounds may account for some of the anger and even
incredulity with which many public sector presidents and deans and
faculty have greeted those who would purport to introduce them to
the "new" imperative of cost containment.
- Much recent criticism also treats all of higher education as
though it resembled either Williams or Stanford, with very low
student faculty ratios, high (and recently augmented) student and
faculty physical amenities, and low teaching loads, especially in
the most prestigious research universities where a sought-after
faculty member may succeed in lowering his or her teaching load
from two courses to one. Most undergraduate students, however, are
in public two-year and four-year colleges, where student faculty
ratios often exceed 20:1 and teaching loads range from a low three
courses, where scholarly expectations are highest, to five and
more in the community colleges.
- Most public (and private) universities have reallocated an
enormous proportion of their resources and faculty positions over
the past decade or two. True, most has been accomplished
incrementally, through the annual reallocation of positions
becoming available by retirement, resignation, and mortality
rather than through sudden and wrenching layoffs and massive
shifts. But changed they have, and the notion that reallocation
and self-funding are part of some new mandate for cost containment
can be expected to be met with bitter bemusement by faculty who
have, in the past decade or two, lost half or more of their
departmental colleagues by the steady erosion of attrition.
- Many public campuses have not only reallocated, but downsized,
over the past decade and one-half. The State University of New
York, for example, has, overall, about 10 percent fewer faculty
and staff than it had in the mid-seventies (and teaches more
students), with the reductions having been spread unequally and
purposefully among campuses (e.g., research universities,
four-year colleges, specialized schools) and on each campus among
faculty, professionals, clerical, and maintenance staff. Again,
the fact of substantial downsizing in the recent past does not in
itself prove that costs have been contained as much as they
conceivably could be or might even have to be. It does prove,
though, that very substantial cost containment has already taken
place at many public colleges and universities and that these
campuses are almost certainly more productive than they were in
the recent past. (This point, too, is equally true of the majority
of the nation's private colleges that are neither well-endowed nor
blessed with deep and affluent applicant pools.)
- The origin of the "complacency" charge is not clear. But
colleges and universities are arguably among the least complacent
or self-satisfied institutions in our society. No other
institution, in fact, may be so perpetually self-critical and so
continuously engaged in reexamination, experimentation, and
reform. True, the resulting changes often seem minor, when all is
said and done, and not infrequently circular or cyclical. But this
does not belie the fact that colleges and universities are
constantly trying to increase their market shares, retention
rates, community acceptability, and academic prestige. Sometimes
we are ineffective; rarely are we complacent.
- Where there has been real growth in the public higher
education sector (and there has been some growth, particularly in
the latter half of the 1980s), it has occurred, almost by
definition, with the concurrence, if not at the instigation, of
those elected officials charged with spending the public's tax
dollars. In short, growth, where it has occurred, has been
purposeful and selective -- e.g., covering expanded enrollments,
building economic development assistance capacity, building and
opening new facilities, adding auditors and other kinds of
management control staff, enhancing services to students with
special needs, and the like. This does not mean that all of this
growth must continue, or that it may not have to be covered, soon,
by cuts elsewhere. But the implication, contained in some of the
cost containment criticism, that the limited recent growth in the
public sector has been self-serving or unpurposeful or the result
of some sort of "bureaucratic creep," or that it has come about as
a surprise to, or against the wishes of, governors and
legislators, is simply untrue. Public colleges and universities do
not levy their own taxes or appropriate their own funds, and even
those that set their own tuitions cannot, in the long run, prevent
compensating cuts in state tax dollar appropriations. Public
colleges and universities will be about as large or as small, or
as lean or as well-funded, as legislators and governors want them
to be. Again, the 1990s may be an austere decade. But the
possibility that cuts may be called for because the tax revenues
will not be there, or because new public needs may move to a
higher priority, should not be confused with a sense that our
public higher educational institutions have been profligate or
will be incapable of downsizing when they need to.
There may be a public out there that believes all of higher
education to be fat, overpriced, and arrogant. This does not mean it
is correct. It certainly is a wrong and mean caricature of most of
higher education, public or private. Let's not be ashamed or
reluctant to defend ourselves.
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