The incentive to have a alumni department to increase donations clearly isn’t in the best interests of society.
[1] https://www.cbpp.org/research/state-budget-and-tax/state-hig...
This is hyperbole, the government is spending billions on American Universities in a myriad of different ways. And, many ways of support are not direct. One could argue that the guaranteed student loan programs are a roundabout way of supporting universities through tax dollars as well.
No, guaranteed student loans are a way to transfer wealth from future taxpayers and borrowers to beneficiaries of tuition such as university staff and whoever is receiving money from the university such as construction companies and whatnot.
The guaranteed loans with no underwriting obfuscate costs and thus result in a mid allocation of society’s resources. Such as leagues of people spending their valuable years learning “communications” or “business” degrees and then sitting in a call center or other role that does not pay enough to make the degree they paid for in time and money to have any decent or even positive ROI.
Feel free to download a breakdown of revenues and expenses for the university of your choice at: https://ope.ed.gov/athletics/#/
You are going to find that almost every school is net neutral with respect to their sports programs. Football and basketball typically funding all other sports.
Expenses: 12M, 25M, 13M, 70M
Revenue: 6M, 30M, 13M, 44M
1/4 is making a slight profit. 1/4 is breaking even. 2/4 are making a major loss.
A Kennesaw State University (00157700 )| Total Enrollment: 27,300
B Georgia Institute of Technology-Main Campus | Total Enrollment: 14,476
C Georgia State University | Total Enrollment: 22,276
D University of Georgia | Total Enrollment: 27,877
“University of Georgia Athletics approved a new budget for the 2022 fiscal year on Friday. The budget is set at $150,290,994, which is $7.7 million more than in 2019 and $3 million short of the 2020 budget.
Georgia athletic director Josh Brooks told media that the 2020 budget shortfall is currently $30 million and was previously $53 million amid the COVID-19 pandemic.”
https://ugawire.usatoday.com/2021/05/28/georgia-foootball-ug...
Later in the article, it states that the stadiums were at partial capacity (mid 2021), so once stadiums went back to full capacity revenue surely increase significantly.
Or monetize research instead of gifting it to large (pharmaceutical) companies?
This isn’t the only way for education to fund itself, and the incentives are not aligned with the mission.
Should schools develop software and the pass the code off to Microsoft or Oracle to deploy it on their servers?
A university couldn’t possibly do it themselves, not without giving away billions to industry!!!
The money goes to the college administrators. They're major bureaucracies that plague and control universities money supply and more or less dictate universities' policies.
The money goes to the athletics and the infrastructure. (Not in the sense of "the best infrastructure money can buy", sadly; no, it's more like "raise $300 million to build this new dorm and let the richest donor put their name on it, then spend about 30% of what it needs for maintenance for the next 30 years...and then spend 5x the amount we would've had to if we'd just maintained it in remediation and renovations".)
Athletics for most schools are a net profit center, even for the #100 football program. The smaller schools aren't spending nearly so much on athletics as the schools with football programs.
Meanwhile, the coaches are being paid millions of dollars per year. I don't care how much money the athletic program is bringing in; that's not a responsible use of the money. (I get that it's something of a prisoner's dilemma at the individual institution level; I'm more talking about the broader issue.) If you have the money to pay the coaches $2M/year, that means you could, instead, stop paying your adjunct professors and regular staff sub-poverty wages, and/or perform proper maintenance on the buildings.
And do not get me started on the economics of stadium construction.
Most of these requirements independently make sense, but the sum impact weighs down universities and drives up cost.
The regulations provide the justification for the jobs program needed to soak up the excess supply of non-trade graduates generated by overenthusiastic student loan policy.
They are mostly not optional if you want to receive federal funding. There are some small colleges that are totally private, do not take government funds, and so don't have to implement and administer many government regulations.
My anecdote wasn’t intended as evidence.
But there’s definitely a problem. You can look at official sources [0] for evidence showing that admin expenses are 21% at public, four year schools.
I found this article while looking for the official stats [1] that claims the average university in the US has 45 people in DEI. DEI is very important, I think, but 45 employees boggles the mind and seems to be more of a symptom of runaway costs and lack of controls that would allow for so many admin staff on a single topic.
[0] https://nces.ed.gov/fastfacts/display.asp?id=75 [1] https://www.heritage.org/education/commentary/administrative...
Further when the engineering firm you started after graduation with some of your classmates wines a National science award. Getting that profiled in the alumni newsletter could be unlocking a range of oppprtunities for your firm from grant funder interest to new commercialisation opportunity, all coming out of the alumni network.
Just cause the work is quiet doesn’t mean it’s pointless.
I’m a big fan of quiet work, but this is pointless. It’s not pointless because it’s quiet. It’s pointless because it has minimal to no positive impact.
Or it might not.
Thats the root of the problem. The administrators are the people coming up with the metrics and arguments to justify their own existence.
I’m sure many of them believe they’re making a positive contribution, and the situation is more complex and tragic than just “these are the baddies” type arguments suggest, but there’s still an accountability problem that needs to be reckoned with.
The problem is that these aren’t efficient dollars anyway. Spending $500k to net $500k is not a good return. Schools should focus on better returns, like teaching and research.
This kind of thing would be like saying your typical account manager's job is surreal and perhaps in some cases that might be true :-)
I have a family member who works in the “alumni relations” department of a small, regional public university. Probably ranked like #300 or something. There are like 5 people in the department. They make a magazine, email newsletter and schedule alumni events.
It was really surreal when they explained their job and that the department exists.
There’s an admin costs problem in this country. There’s no sufficient governance or oversight in controlling university spending. This is even a public university and it’s just bizarre that they can make up positions that shouldn’t even exist.