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Archive for Sunday, October 7, 2012

KU relying more on revenue from tuition, fees

Per-student state funding fell more than 30% from 2002-2010

October 7, 2012

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The National Science Board sounded the alarm late last month about declining state funding of public research universities across the country.

A report from the NSB noted that state funding per student, adjusted for inflation, had fallen by an average of 20 percent across the country between 2002 and 2010. But at Kansas University, the problem has been even bigger.

According to a KU presentation to the Kansas Board of Regents this spring, per-student state funding fell by more than 30 percent at KU over the same period of time.

Between the 2003-04 and 2011-12 academic years, state appropriations declined from 27.3 percent of the university’s revenue to 21 percent, according to data from the university’s Office of Institutional Research and Planning.

Rising to fill that gap were revenues from tuition and fees, which rose from 14.6 percent to 19.8 percent of revenues, and grants and contracts, which went from 21.4 percent to 26.2 percent.

By pure dollar amounts, revenue from tuition and fees grew by about 90 percent during that span, from about $124.5 million to $236.8 million. The gap between state money and tuition and fee money shrank from $109 million in 2003 to $14.4 million in 2011.

Annual tuition rates more than doubled for in-state undergraduates during that time, while the increase for out-of-state undergrads was about 76 percent. (For comparison’s sake, those figures are based on standard rates, not the rates for the four-year tuition pact that has applied to new freshmen since fall 2007.)

Tim Caboni, KU’s vice chancellor for public affairs, said the reduced state funding had certainly sent the cost of tuition rising to fill the gap.

“Our great concern is ensuring that young people who are prepared to be successful can afford to come to the University of Kansas,” Caboni said.

To alleviate that concern, he said, the university has made scholarship funding available — more than $50 million this year. And, he noted, KU’s tuition level still ranks 27th out of the 34 members of the Association of American Universities. He said he did not believe the level of tuition had hurt recruitment, as evidenced by an increase in the size of this year’s freshman class even as tuition rose again.

Susan Twombly, a professor and chairwoman of educational leadership and policy studies at KU who conducts research on higher education, said the university’s relatively low tuition had long served as a safety net as state funds have declined.

“At KU, we’ve always thought, ‘Oh, gosh, our tuition’s really low. There’s room to expand there without hurting enrollment,’” Twombly said.

But the shift from state money to tuition dollars can’t continue forever, she said.

Declining appropriations also put more pressure than ever on faculty members to chase federal research grants — and not just to fund new research projects. KU and other universities are increasingly relying on such grants to fund graduate students, who contribute greatly to research efforts.

And as tuition costs rise to make up for reduced state funds, she said, the cost of funding doctoral students will increase as well.

“Certainly increasing tuition doesn’t help,” Twombly said. “Even if they’re not paying the tuition directly, someone’s paying it.”

‘A war for talent’

In addition to rising tuition, the NSB report cautioned that continued decline in state funding could mean public research universities are unable to keep their top faculty members from leaving for richer private institutions.

Caboni, who worked at Vanderbilt University before coming to KU, said he saw that fear come to fruition. He recalled that Vanderbilt used its deeper pockets to recruit three different elite researchers to come over from the University of Wisconsin.

“In many ways, we’re in a war for talent,” Caboni said.

Wealthy institutions can offer researchers not only a higher salary, Caboni said, but also pay more startup costs for research and provide more graduate students for assistance.

Pay for tenure-track faculty at KU has plateaued since 2009, according to data kept by the Chronicle of Higher Education, and pay for professors at all levels falls below the median for doctorate-granting institutions.

Twombly said that when those salaries stopped climbing, she had heard from colleagues across the country that KU could be vulnerable to attempts to hire away faculty.

“People were saying that KU faculty were ripe for the picking,” Twombly said.

Caboni noted that the Kansas Legislature had shown support for KU’s efforts to find top researchers with a $3 million annual commitment to hire 12 elite “Foundation Professors.” The state has also given KU, along with Kansas State University and Wichita State University, support to bolster its engineering programs.

But Twombly said KU — like other public research universities — would likely continue to face major challenges in coming years as they feel pressure from their states to both produce solid research and educate students with a limited pool of funding.

“Declining resources doesn’t help,” Twombly said. “That’s for sure.”

Comments

Thomas Bryce 2 years, 1 month ago

KU has a problem here.The administration continues to add High salaried positions while cutting workers and faculty. What is the mission of KU supposed to be? Aren't the students our Top Priority? KU has cut staff that takes car of the Physical aspect of the University to the bone. Deferred Maintenance on the buildings and grounds was closing in on a Billion Dollars the last time I saw figures. No raises for workers. KU IS loosing talented faculty to other Universities. The increased use of lecturers and GTA's to replace tenured faculty teaching load is disturbing. How many Quarter Million Dollar a Year Associate Vice This or Assistant Vice Thats do They need? The legislature Has definitely cut funding. It is no secret that there are many in the Legislature that believe KU does not spend its resources wisely. No wonder we get cut after cut. And I don't EVEN want to start on Athletics.KU needs to put the EDUCATION of Students in First place as the priority. You need Stellar teachers and a beautiful(and Safe) campus to achieve this. The University needs to look at its ADMINISTRATIVE costs Very Closely.

lawslady 2 years, 1 month ago

Like you, I once believed that athletics (and its costs) were a waste/drain. But then someone very smart sat me down and did the math, with facts. #1 a lot of what is spent on althletic programs comes from Foundation and other private sources. #2 the amount of $ that is made by having top notch teams often (if not always) out-paces the $ spent on such programs. So, I had to stop complaining about funds spent in that direction.

COjayrocks 2 years, 1 month ago

The real problem here is the State. Not the University. KU is forced to cut and cut and cut and people are legitimately upset when they are the ones that see the funding cut. But, what are the administrators supposed to do? The State gives them less than any of the other State-funded Universities but we are the flagship University?

The problem is there are too many mouths to feed in a state with a very low tax base. Pitt State, Wichita State, Baker, etc are draining the funds we have. A line will eventually have to be drawn, there is only so much money to go around and what? Do we really want to bring down our best institutions just so PSU, WSU, Baker, etc can stay afloat?

Thomas Bryce 2 years, 1 month ago

Administrators should tighten their belts Too.You can't just cut workers and faculty to get out of this.Their entire Philosophy must change. We did not get into this predicament overnight. It took years of inaction and poor planning to get this far down and you CANNOT blame the Faculty and staff for that.

kuguardgrl13 2 years, 1 month ago

Baker is supposed to be a private school. I say supposed to be because we know they get funding for the wetlands. They should not be receiving as much as Pitt State or Wichita though. And especially not as much as KU or K-State.

wastewatcher 2 years, 1 month ago

KU and all of the Regents Schools choose to ignore the costs that are entirely out of control and rising at a rate much greater than inflation. I would like to see a study that looked at the cost side of the equation. How about some help to get a study done for each one of the Regents school

toefungus 2 years, 1 month ago

Yep, I'm back, baby. It is time for the state to belly up and pay.

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