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NY Times: Colleges Are Spending More on Recreation, Less on Instruction

New York Times, Share of College Spending for Recreation Is Rising:

American colleges are spending a declining share of their budgets on instruction and more on administration and recreational facilities for students, according to a study of college costs released Friday.

The report, based on government data, documents a growing stratification of wealth across America’s system of higher education. At the top of the pyramid are private colleges and universities, which educate a small portion of the nation’s students, while public universities and community colleges, where tuitions are rising most rapidly, serve greater numbers and have fewer resources.

The study of revenues and spending trends of American institutions of higher education from 1998 through 2008 traces how the patterns at elite private institutions like Harvard and Amherst differed from sprawling public universities like Ohio State and community colleges like Alabama Southern.

The United States is reputed to have the world’s wealthiest postsecondary education system, with average spending of around $19,000 per student compared with $8,400 across other developed countries, said the report, “Trends in College Spending 1998-2008,” by the Delta Cost Project, a nonprofit group in Washington that promotes greater scrutiny of college costs to keep tuitions affordable. “Our analysis shows that these comparisons are misleading,” Jane Wellman, the group’s executive director, said in an e-mail statement. “While the United States has some of the wealthiest institutions in the world, it also has a ‘system’ of postsecondary education with far more economic stratification than is true of any other country.”

Community colleges, which enroll about a third of students, spend close to $10,000 per student per year, Ms. Wellman said, while private research institutions, which enroll far fewer students, spend an average of $35,000 a year for each one. …

[T]he trend toward increased spending on nonacademic areas prevailed across the higher education spectrum, with public and private, elite and community colleges increasing expenditures more for student services than for instruction, the report said.

The student services category can include spending on career counseling and financial aid offices, but also on intramural athletics and student centers.

“This is the country-clubization of the American university,” said Richard K. Vedder, a professor at Ohio University who studies the economics of higher education. “A lot of it is for great athletic centers and spectacular student union buildings. In the zeal to get students, they are going after them on the basis of recreational amenities.”

On average, spending on instruction increased 22% over the decade at private research universities, about the same as tuition, but 36% for student services and 36% for institutional support, a category that includes general administration, legal services and public relations, the study said. At public research universities, spending for student services rose 20% over the decade, compared with 10% for instruction.  

(Hat Tip; Ann Murphy.)


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