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One of the biggest problems in higher ed shows its face here: increased administration costs[1]. It is ridiculous how bureaucracy has insinuated itself so thoro

One of the biggest problems in higher ed shows its face here: increased administration costs[1]. It is ridiculous how bureaucracy has insinuated itself so thoroughly and, as a result, has driven so many costs up, especially during a time when people should be getting more productive thanks to technology. 1. http://www.bloomberg.com/news/2012-11-14/bureaucrats-paid-250-000-feed-outcry-over-college-costs.html http://www.bloomberg.com/news/2012-11-14/bureaucrats-paid-25...

HarryHirsch 13y ago
The chief problem besetting universities in the US is administrative bloat, administrative bloat and reduced NIH funding lines. The two problems besetting universities are bloat, reduced NIH funding, and a collapsed endowment due to the funding crisis. And reduced state funding. Amongst the problems besetting universities are bloat, reduced NIH funding, and a collapsed endowment due to the funding crisis, reduced state funding, and reduced alumni donations. Says Cardinal Ximenez. Pinning the very real problems facing colleges and universities on one cause, top-heavy administration, and then insisting that it can be remedied somehow through technology is simplistic.
- SoftwareMaven 13y ago
  I did not say it was the only problem, nor do I believe it is. I do think it may be the most critical one, but that is just an opinion with only data from having worked in the higher ed vertical once upon a time. The reason I think it is most critical is two-fold. First, extra administration just pulls money away from the actual teaching in salaries. But worse, the costs grow exponentially, as administrators ensure people know the "value they bring" or grow their "fiefdoms". The actions wind up creating additional costs and drag throughout the organization. Universities have seen a near doubling of non-teaching staff[1][2]. These people do not bring much value to students, instead, they focus on the university. But it's the students that pay their salaries. Now, a bigger question is how to fix it. The reading I've done on it lays much of the blame on the easy availability of student loans: they've allowed universities to jack up tuition prices well beyond the consumer index. Universities kept the teaching ratio about the same[1], so students get roughly the same education, while employing many other professionals and administrators with the extra money they could pull out of the system. Because they can continue raising tuition, they have a way to keep their staff through spending cuts from their funding sources. To fix the administration problem, you have to fix the student loan problem. Unfortunately, it's a catch 22. 1. http://www.washingtonmonthly.com/magazine/septemberoctober_2011/features/administrators_ate_my_tuition031641.php http://www.washingtonmonthly.com/magazine/septemberoctober_2... 2. http://www.economist.com/news/united-states/21567373-american-universities-represent-declining-value-money-their-students-not-what-it http://www.economist.com/news/united-states/21567373-america...
rdtsc 13y ago
That is always my question. Where is all this money going? Tuition goes up well above inflation, that money doesn't disappear? Are more professors hired, more facilities built? Keep adding middle managers and secretaries?
- prostoalex 13y ago
  California top 2 public salaries are sports coaches (back in 2011), that's before pension http://www.sacbee.com/statepay/ http://www.sacbee.com/statepay/ Add up the loans and loan interest to build out sports facilities, hundreds of "athletic directors", bunch of underlings they direct on a daily basis, staff and maintenance hired to run the sports facilities, sports scholarships handed out to gifted students, multiply by number of universities and it starts to add up.
  - SoftwareMaven 13y ago
    I think there are a fair number of colleges to profit from their sports programs. There is also no question that sporting programs are an important aspect of alumni contributions. The problems is that there are many more that sink dollars into programs irresponsibly because they either irrationally believe they will get a profitable program or feel like they have to maintain some level of "sporting commitment" for its own sake. The data is ugly.[1] 1. http://www.usatoday.com/sports/college/story/2012-05-14/ncaa-college-athletics-finances-database/54955804/1 http://www.usatoday.com/sports/college/story/2012-05-14/ncaa...
    - prostoalex 13y ago
      Those calculations are highly dependent on how you interpret the costs of facilities build-up and maintenance. Most of the time they're hidden on university's balance sheet apart from athletic program budget, since in theory a brand new stadium, training facility, basketball court or swimming pool is used by staff, faculty and students outside of athletic departments. If the economic incentive was there, a host of private operators would bid to operate an athletic team and facility on a for-profit basis with school getting a cut of the action, sort of what you see with cafeteria, swag stores and other commercial outlets.
specialist 13y ago
No contest on rising overhead. But my understanding, in my state, and I have skin in the game, is that tuition is rising as state subsidies are declining, pretty much 1:1. Whereas previously residents would get a discount compared to out of state students, pretty soon there will be no discount. Said another way, all of my state's universities will be 100% tuition supported within a few years.

HarryHirsch 13y ago

The chief problem besetting universities in the US is administrative bloat, administrative bloat and reduced NIH funding lines. The two problems besetting universities are bloat, reduced NIH funding, and a collapsed endowment due to the funding crisis. And reduced state funding. Amongst the problems besetting universities are bloat, reduced NIH funding, and a collapsed endowment due to the funding crisis, reduced state funding, and reduced alumni donations. Says Cardinal Ximenez. Pinning the very real problems facing colleges and universities on one cause, top-heavy administration, and then insisting that it can be remedied somehow through technology is simplistic.

SoftwareMaven 13y ago
I did not say it was the only problem, nor do I believe it is. I do think it may be the most critical one, but that is just an opinion with only data from having worked in the higher ed vertical once upon a time. The reason I think it is most critical is two-fold. First, extra administration just pulls money away from the actual teaching in salaries. But worse, the costs grow exponentially, as administrators ensure people know the "value they bring" or grow their "fiefdoms". The actions wind up creating additional costs and drag throughout the organization. Universities have seen a near doubling of non-teaching staff[1][2]. These people do not bring much value to students, instead, they focus on the university. But it's the students that pay their salaries. Now, a bigger question is how to fix it. The reading I've done on it lays much of the blame on the easy availability of student loans: they've allowed universities to jack up tuition prices well beyond the consumer index. Universities kept the teaching ratio about the same[1], so students get roughly the same education, while employing many other professionals and administrators with the extra money they could pull out of the system. Because they can continue raising tuition, they have a way to keep their staff through spending cuts from their funding sources. To fix the administration problem, you have to fix the student loan problem. Unfortunately, it's a catch 22. 1. http://www.washingtonmonthly.com/magazine/septemberoctober_2011/features/administrators_ate_my_tuition031641.php http://www.washingtonmonthly.com/magazine/septemberoctober_2... 2. http://www.economist.com/news/united-states/21567373-american-universities-represent-declining-value-money-their-students-not-what-it http://www.economist.com/news/united-states/21567373-america...

rdtsc 13y ago

That is always my question. Where is all this money going? Tuition goes up well above inflation, that money doesn't disappear? Are more professors hired, more facilities built? Keep adding middle managers and secretaries?

prostoalex 13y ago
California top 2 public salaries are sports coaches (back in 2011), that's before pension http://www.sacbee.com/statepay/ http://www.sacbee.com/statepay/ Add up the loans and loan interest to build out sports facilities, hundreds of "athletic directors", bunch of underlings they direct on a daily basis, staff and maintenance hired to run the sports facilities, sports scholarships handed out to gifted students, multiply by number of universities and it starts to add up.
- SoftwareMaven 13y ago
  I think there are a fair number of colleges to profit from their sports programs. There is also no question that sporting programs are an important aspect of alumni contributions. The problems is that there are many more that sink dollars into programs irresponsibly because they either irrationally believe they will get a profitable program or feel like they have to maintain some level of "sporting commitment" for its own sake. The data is ugly.[1] 1. http://www.usatoday.com/sports/college/story/2012-05-14/ncaa-college-athletics-finances-database/54955804/1 http://www.usatoday.com/sports/college/story/2012-05-14/ncaa...
  - prostoalex 13y ago
    Those calculations are highly dependent on how you interpret the costs of facilities build-up and maintenance. Most of the time they're hidden on university's balance sheet apart from athletic program budget, since in theory a brand new stadium, training facility, basketball court or swimming pool is used by staff, faculty and students outside of athletic departments. If the economic incentive was there, a host of private operators would bid to operate an athletic team and facility on a for-profit basis with school getting a cut of the action, sort of what you see with cafeteria, swag stores and other commercial outlets.

specialist 13y ago

No contest on rising overhead. But my understanding, in my state, and I have skin in the game, is that tuition is rising as state subsidies are declining, pretty much 1:1. Whereas previously residents would get a discount compared to out of state students, pretty soon there will be no discount. Said another way, all of my state's universities will be 100% tuition supported within a few years.