Years of tuition shell games clobber students, families

By Patricia Kilday Hart

I should be happy for University of Houston students that President Renu Khator and the UH Board of Regents found a way to hold down costs and avoid a tuition increase next year.

After all, Khator and her leadership team demonstrated exemplary government service. Involving the entire college community, they researched best practices, looked in every nook and cranny and under all the seat cushions for extra dollars to balance the budget. The architecture students conducted a study of space management. Contracts were re-bid and frills were ruthlessly axed.

So, why in the face of such a “good” news story am I feeling grumpy on the subject of college tuition? Because less than 10 years ago, before the Texas Legislature and Gov. Rick Perry decided to deregulate college tuition, UH students were paying nearly half what they are now. In 2003, the cost of a semester ran about $2,077. Now it’s $3,855.

State leaders decided to give university regents the authority to raise tuition without permission from the Legislature in 2003 – while at the same time slashing state support to public universities.

Advocates of tuition deregulation promised that regents would be reasonable, but some lawmakers, like Sen. John Whitmire, D-Houston, were skeptical.

“I would caution that we not make tuition so high that we force people to finance their entire education,” Whitmire said during the 2003 debate.

Debt as big as a house

Last week, the Chronicle reported that outstanding U.S. student loan debt recently surged past $1 trillion – surpassing national credit card and auto loan debt. So Tuesday, I called Whitmire and offered the opportunity to say “I told you so.”

He obliged: Giving university regents the authority to set tuition “was a huge mistake. I’ve seen a lot of bad votes, but that was one of the worst I’ve seen in my career. We always took pride that Texas had very affordable higher education. Now, students have to take significant loans that truly look like a house note by the time they graduate.”

Of course, Whitmire noted, lawmakers gave up their power to set tuition to avoid a hard political vote on raising taxes. Most had signed anti-tax advocate Grover Norquist‘s pledge to never vote for a tax hike. But it was all a shell game: After the Legislature slashed higher education by over $300 million in 2003, Texas colleges and universities raised tuition revenues almost exactly the same amount.

“It was a tax increase” shouldered by college students and their families, Whitmire noted. “It was just called something else.”

Deregulation’s legacy

For young people, these financial games have real-life consequences: Starting a career weighed down with debt. By some national estimates, average student loans debts recently topped $25,000, up 25 percent from a decade ago.

Before tuition deregulation, Texas colleges and universities leaders every budget cycle looked for ways to scrimp. They knew, especially if they were going to get permission to hike tuition, that they’d have to justify their plans to a wary Legislature. After all, the state Capitol is a short walk for University of Texas students looking for a reason to protest on a nice spring day. Lawmakers were always reluctant to incite a march by permitting tuition hikes.

Now, non-elected regents do the dirty work for them. Why else would the Legislature voluntarily cede control of any issue? (As an aside, Whitmire believes the Legislature got hoodwinked in the bargain. Since they no longer set tuition, legislators have lost clout with university administrators on policy issues ranging from admissions to athletic conferences.)

Broke, dysfunctional

Perry last year began calling for Texas universities to create a $10,000 degree, counting on the public’s collective poor memory. That’s about what college cost in Texas when he took charge.

We can hope that Khator’s leadership at UH will serve as a peer pressure on other university presidents; students are unlikely to get help from the Legislature, according to Whitmire.

Efforts to rescind tuition de-regulation have failed. And in the current budget cycle, he notes, the Legislature cut higher education by $1 billion, while enrollment is expected to grow by 100,000 students in the same time period.

Meanwhile, lawmakers stick their fingers in their ears when anyone mentions the “structural deficit” created by the state’s 2006 margins tax.

“We have a broke and dysfunctional state financial picture,” Whitmire said.

So UH students, enjoy the reprieve. But expect the shell games to continue.

patti.hart@chron.com

read more: http://www.chron.com/news/kilday-hart/article/Years-of-tuition-shell-games-clobber-students-3457033.php

 

6 responses on “Years of tuition shell games clobber students, families

  1. UNiversity of California Berkeley Chancellor Birgeneau and Provost Breslauer pile on tuition increases. UC Berkeley Chancellor Birgeneau and Provost Breslauer pick the pockets of Californian students and their parents clean. Birgeneau’s tuition/fee increases rank Cal. # 1 most expensive (on all-in-cost) public university. UC Berkeley is more expensive than Harvard, Yale. Birgeneau’s decisions are an insult to taxpayers who help support the University of California system and to students confronting soaring costs.

    UC Berkeley Birgeneau ($450,000 salary) has forgotten he is a public servant, steward of the public money, not overseer of his own fiefdom. Pays ex-politician $300,000 for several lectures; Doubles instate tuition/fees; Recruits (using California tax $) foreign & out of state affluent $50,600 tuition students who displace Cal. qualified instate applicants; Spends $7,000,000 + (prominent East Coast university accomplishing same at 0 cost) for OE consultants to remove inefficiencies created by his leadership then stonewalls consultants from examining Chancellor office: When procuring OE consultants failed to receive alternative proposals: Tuition to Return on Investment drops below top 10.

    In tough economic times, unpleasant decisions must be made: is this the sort of Provost and Chancellor we need?
    Email opinion to marsha.kelman@ucop.edu . (The author has 35 years’ consulting, has taught at Cal where he observed the culture & ways of senior management & was not fired)

  2. Pingback: Outside effort could rekindle UT faculty productivity and tuition increase controversy. « Times of Texas·

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  4. Pingback: As UT, A&M Regents Meet the Week, Governor Eyes Tuition « Times of Texas·

  5. Pingback: Trowbridge: Texas legislators neglect low-income and minority students « Times of Texas·

  6. Pingback: Tennessee Dems Request Special Session to Freeze Tuition « Times of Texas·

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