privatization & the public good“the whole issue of creating educated citizens has been lost....

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PRIVATIZATION & THE PUBLIC THE PUBLIC THE PUBLIC THE PUBLIC GOOD GOOD GOOD GOOD M A T T H E W T. L A M B E R T

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Page 1: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

PRIVATIZATION &

THE PUBLIC THE PUBLIC THE PUBLIC THE PUBLIC GOODGOODGOODGOOD M A T T H E W T. L A M B E R T

Page 2: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

WHYWHYWHYWHYPUBLIC HIGHER

ED?

WHYWHYWHYWHY NOW?

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

Page 3: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

what ISPRIVATIZATION?

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

Page 4: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

$60.5

$68.2

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

1987198919911993199519971999200120032005200720092011

To

tal

Ap

pro

pri

ati

on

s (I

n B

illi

on

s)

Year

Total U.S. Educational Appropriations For Higher Education

(In Constant 2012 Dollars)

$-

$5,000

$10,000

$15,000

$0

$5

$10

$15

Ed

uca

tio

na

l A

pp

rop

ria

tio

ns

Pe

r F

TE

Pu

bli

c F

TE

En

roll

me

nt

(In

Mil

lio

ns)

Year

United States Public FTE Student Enrollment, Net Tuition, and

Educational Appropriations Per FTE Student, 1987–2012 (In

Constant 2012 Dollars)

Net Tuition per FTE

Educational Appropriations per FTE

Public FTE Enrollment

APPROPRIATIONS VERSUS ENROLLMENTRIDING THE WAVE:

Source: SHEEO

Note: Constant 2012 dollars adjusted by SHEEO Higher Education Cost Adjustment

(HECA). Educational appropriations include ARRA funds

Source: SHEEO

Note: Constant 2012 dollars adjusted by SHEEO Higher Education Cost Adjustment

(HECA). Educational appropriations include ARRA funds.

Page 5: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

$3,052$10,285

$22,131 $19,679

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Re

ven

ue

Pe

r FT

E

Year

Total Appropriations and Net Tuition and Fees Per FTE Student

For The University Of North Carolina–Chapel Hill, 1987–2010

(In Constant 2010 Dollars)

Net Tuition and Fees State Appropriations

$-

$5,000

$10,000

$15,000

0.0

0.2

0.4

0.6

Ed

uca

tio

na

l Ap

pro

pri

ati

on

s P

er

FTE

Pu

blic

FT

E E

nro

llme

nt

(In

Mill

ion

s)

Year

Public FTE Student Enrollment, Educational Appropriations, and

Total Educational Revenue Per FTE Student, North Carolina, Fiscal

Years 1987–2012

(In Constant 2012 Dollars)

Net Tuition per FTE

Educational Appropriations per FTE

Public FTE Enrollment

NORTH CAROLINA TUITION AND REVENUES

Source: SHEEO, 2013

Note: Constant 2012 dollars adjusted by SHEEO Higher Education Cost Adjustment

(HECA). Educational appropriations include ARRA funds.

Source: Delta Cost Project dataset, 2012

Note: The fall FTE enrollment was used for FTE calculations. Constant 2010 dollars

adjusted by SHEEO Higher Education Cost Adjustment (HECA).

Page 6: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

CALIFORNIA TUITION AND REVENUES

$3,938

$11,350

$22,271

$14,061

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

198719891991199319951997199920012003200520072009

Re

ve

nu

e P

er

FT

E

Year

Total Appropriations and Net Tuition and Fees Per FTE Student

For The University Of California, Berkeley, 1987–2010 (In

Constant 2010 Dollars)

Net Tuition and Fees State Appropriations

$-

$5,000

$10,000

$15,000

0.0

0.5

1.0

1.5

2.0

Ed

uca

tio

na

l A

pp

rop

ria

tio

ns

Pe

r F

TE

Pu

bli

c F

TE

En

roll

me

nt

(In

Mil

lio

ns)

Year

Public FTE Student Enrollment, Educational Appropriations, and

Total Educational Revenue Per FTE Student, California, 1987–

2012 (In Constant 2012 Dollars)

Net Tuition per FTE

Educational Appropriations per FTE

Public FTE Enrollment

Source: Delta Cost Project dataset, 2012

Note: The fall FTE enrollment was used for FTE calculations. Constant 2010 dollars

adjusted by SHEEO Higher Education Cost Adjustment (HECA).

Source: SHEEO, 2013

Note: Constant 2012 dollars adjusted by SHEEO Higher Education Cost Adjustment

(HECA). Educational appropriations include ARRA funds.

Page 7: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

$-

$5,000

$10,000

$15,000

0.0

0.1

0.2

0.3

0.4

Ed

uca

tio

na

l A

pp

rop

ria

tio

ns

Pe

r F

TE

Pu

bli

c F

TE

En

roll

me

nt

(In

Mil

lio

ns)

Year

Public FTE Student Enrollment, Educational Appropriations, and

Total Educational Revenue Per FTE Student, Virginia, 1987–2012

(In Constant 2012 Dollars)

Net Tuition per FTE

Educational Appropriations per FTE

Public FTE Enrollment

VIRGINIA TUITION AND REVENUES

$5,933

$14,501

$12,296

$6,219

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Re

ve

nu

e P

er

FT

E

Year

Total Appropriations and Net Tuition and Fees Per FTE Student For

The University Of Virginia, 1987–2010 (In Constant 2010 Dollars)

Net Tuition and Fees State Appropriations

Source: SHEEO, 2013

Note: Constant 2012 dollars adjusted by SHEEO Higher Education Cost Adjustment

(HECA). Educational appropriations include ARRA funds.

Source: Delta Cost Project dataset, 2012

Note: The fall FTE enrollment was used for FTE calculations. Constant 2010 dollars

adjusted by SHEEO Higher Education Cost Adjustment (HECA).

Page 8: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$- $5,000 $10,000 $15,000 $20,000 $25,000

In-s

tate

Tu

itio

n a

nd

Fe

es

Appropriations Per FTE

Public Flagship Universities, 2001

(In Constant 2011 Dollars)

UC Berkeley UNC-CH UVA

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$- $5,000 $10,000 $15,000 $20,000 $25,000

In-s

tate

Tu

itio

n a

nd

Fe

es

Appropriations Per FTE

Public Flagship Universities, 2011

(In Constant 2011 Dollars)

UC Berkeley UNC-CH UVA

THREE PUBLIC FLAGSHIP UNIVERSITIES 2001 - 2011

Source: IPEDS, 2012

Note: Appropriations per FTE were calculated using state appropriations divided by fall FTE enrollment.

Inflation-adjusted totals were calculated using 2011 HECA. Bubble size reflects fall FTE enrollment.

Page 9: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

STATE CONTEXT

VISION & FOCUS

AUTONOMY

FINANCE

ENROLLMENT & ACCESS

LEADERSHIP

Where did we come from?

Who are we serving?

Who “owns” us?

How are we funded?

Who are our students?

What do our leaders say and do?FOUNDATIONS OF

PRIVATIZATION

Page 10: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

GAP BETWEEN PERCIEVED VALUE AND PUBLIC INVESTMENT

“I think people understand that [higher education] is

important, but when you talk about a shrinking pie, we’re

choosing between seniors and single mothers without

childcare or the university system, which is perceived as

being able to take care of [itself].”

LEGISLATOR FROM CALIFORNIA

Page 11: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

PUBLIC GOOD or

PRIVATE BENEFIT? Redefining Public Higher Education

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

Page 12: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

PUBLIC PRIVATE▅ Reduced crime rates

▅ Increased charitable giving / community service

▅ Social cohesion / appreciation of diversity

▅ Improved ability to adapt to and use technology

▅ Increased tax revenues

▅ Greater productivity

▅ Increased consumption

▅ Increased work force flexibility

▅ Decreased reliance on government financial support

▅ Improved health / life expectancy

▅ Improved quality of life for offspring

▅ Better consumer decision making

▅ Increased personal status

▅ More hobbies and leisure activities

▅ Higher salaries and benefits

▅ More stable employment

▅ Higher savings levels

▅ Improved working conditions

▅ Personal / professional mobility

S O

C I

A L

E C

O N

O M

I C

S O

C I

A L

E C

O N

O M

I C

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

BENEFITBENEFITBENEFITBENEFIT

Page 13: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

52%OF OVERALL BENEFITS

ACCRUE TO SOCIETY

Page 14: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

“The whole issue of creating educated citizens has been lost. That, of course, was the

fundamental reason for public higher education. You’ll find statements that go back to the

founding of the university about the purpose of a state university is to create an educated

citizen. That’s almost completely absent from the discussion now, but the primary public

mission was historically to increase the quality of civic life, to create social cohesion. But

the word citizen never appears on a legislator’s list today.”

Robert Berdahl – former president of

the American association of universities

COMPELLING THE LEGISLATOR

Page 15: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

BUILDING A PUBLIC- PRIVATE MODEL New Models of Higher Education

Page 16: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

“Education is not a trivial business, a private good, or a discretionary expenditure. It

is a deeply ethical undertaking at which we must succeed if we are to survive as a

free people. Privatization . . . is here to stay, but we must approach and conceive of

higher education as a public good and seek to maintain its role in society as such.

”- GORDON DAVIES

THE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOODTHE PUBLIC GOOD

PRIVATIZATION &

A RENEWED CONVERSATION

Education as an ethical undertaking

Page 17: PRIVATIZATION & THE PUBLIC GOOD“The whole issue of creating educated citizens has been lost. That, of course, was the fundamental reason for public higher education. You’ll find

Vice President for University

Advancement

William & Mary | [email protected]

THE PUBLIC THE PUBLIC THE PUBLIC THE PUBLIC GOODGOODGOODGOOD

PRIVATIZATION &

M A T T H E W T. L A M B E R T