Front page lengthy article (paywall)on the spending habits of flagship schools of each of the 50 states. WSJ examined the financial statements since 2002.Some highlights:
"The nation's best-known public universities have been on an unfettered spending spree. In the past two decades they have erected new skylines of snazzy academic buildings and dorms. They poured money into big time sports programs and hired layers of administrators. Then they passed the bill along to students."
"The spending is inextricably tied to the nation's $1.6 trillion federal student debt crisis. Colleges have paid for their sprees in part by raising tuition prices leading many students to take on more debt. That means student loans served as easy financing for university projects."
"Through it all schools operated in a culture that valued unrelenting growth and prioritized raising revenue over cutting costs."
"Many university officials struggled to understand their own budgets and simply increased spending every year. Trustees demanded little accountability and often rubber what came before them. And schools inconsistently disclose what they spend, making it nearly impossible for the public to review how their tuition and tax dollars are being spent.
"Much of the increase in outlays showed up in the hiring process for administrators, faculty, coaches and finance experts the Journal's analysis found.
Among the more profligate in the article were Kentucky, Oklahoma and UConn. But there's this gem "Pennsylvania State University spent so much money that it now has a budget crisis - even though it's among the most expensive public universities in the US."
Of course, if it runs in the Star Ledger the Headline will read "Rutgers and Other State Colleges 'Devour' Money, And Students Foot the Bill"
"The nation's best-known public universities have been on an unfettered spending spree. In the past two decades they have erected new skylines of snazzy academic buildings and dorms. They poured money into big time sports programs and hired layers of administrators. Then they passed the bill along to students."
"The spending is inextricably tied to the nation's $1.6 trillion federal student debt crisis. Colleges have paid for their sprees in part by raising tuition prices leading many students to take on more debt. That means student loans served as easy financing for university projects."
"Through it all schools operated in a culture that valued unrelenting growth and prioritized raising revenue over cutting costs."
"Many university officials struggled to understand their own budgets and simply increased spending every year. Trustees demanded little accountability and often rubber what came before them. And schools inconsistently disclose what they spend, making it nearly impossible for the public to review how their tuition and tax dollars are being spent.
"Much of the increase in outlays showed up in the hiring process for administrators, faculty, coaches and finance experts the Journal's analysis found.
Among the more profligate in the article were Kentucky, Oklahoma and UConn. But there's this gem "Pennsylvania State University spent so much money that it now has a budget crisis - even though it's among the most expensive public universities in the US."
Of course, if it runs in the Star Ledger the Headline will read "Rutgers and Other State Colleges 'Devour' Money, And Students Foot the Bill"
