November 09, 2024
Editorial

UNIVERSITY COST SHIFTING

When University of Maine System trustees earlier this week approved an average tuition increase of nearly 8 percent for next fall, they blamed the Legislature. They are right to point fingers at Augusta, but not for the reasons they gave.

While state funding for public universities nationwide has not kept pace with inflation and increases in health care costs, the schools could do more to rein in costs. This is especially true in Maine, where noninstructional costs (such as salaries for presidents, deans and secretaries) far outweigh instructional costs (faculty salaries). In Maine, there are 3.6 non-instructional staff for each instructional staff member, the highest in the country, according to an analysis by University of Maine economist Philip Trostel. The national average is 1.9. Maine’s ratio is so high because the state supports seven university campuses, seven community colleges and maritime academy, all with their own administrative hierarchy.

When the university system tried to remedy this situation by consolidating campuses and streamlining operations, the Legislature jumped in and said no such changes could be made without its approval. The university system was told it had to keep operating as it is – inefficiently and with lots of duplication – while making due with less money. The result is that students will pay more.

Under the plan approved Monday, annual tuition and fees for in-state undergraduates at the University of Maine would increase next fall by 8 percent, or $516, over the previous year. It will increase by smaller amounts at the other six campuses. Tuition for out-of-state students will increase an average of 9 percent. Despite the increase, the University of Maine will still have the lowest in-state tuition among New England land-grant universities.

The question is whether that money is being well spent. Chancellor Joseph Westphal believed that the university system could use its resources more wisely. He planned to merge the universities in Fort Kent, Presque Isle and Machias, with a single president.

Another proposal was to merge the Augusta campus with the University of Southern Maine and to allow the community college system to focus on two-year degrees in central Maine. Both ideas were vehemently opposed and dropped from the strategic plan.

To ensure that such cost-saving plans are never formulated again, the Legislature passed LD 1241, which requires trustees to first submit for approval any of its restructuring plans to the Legislature’s Education Committee.

While this political maneuvering was going on, a major change in university funding took place. With the system budget approved this week, for the first time money from tuition revenues will exceed state support. Tuition and fees will amount to 40.4 percent of a total $432.1 million budget, while the state appropriation would be 39.9 percent. The rest of the money comes from revenue from goods and services such as sales from tickets to sporting and cultural events, books and food, as well as from research grants.

In 1990, tuition and fees comprised 26 percent of the total UMS budget, while the state appropriation was 67.5 percent.

Maine has a long way to go to better utilize its higher education dollars. Legislators have made it more difficult for that journey to begin while passing costs on to students.

Correction: Thursday’s editorial, “University Cost Shifting,” misidentified an amendment to the 2006-07 budget bill as LD 1241. The former legislation was passed as part of the budget; the latter was killed May 3.

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