Is Public Higher Ed Threatened by Competition and Privatization?

Statewide efforts addressing all of higher education's public purposes are needed to combat the increasing competition and privatization sweeping the nation's public colleges and universities, says a new report from the Futures Project, Correcting Course: How We Can Restore the Ideals of Public Higher Education in a Market-Driven Era.

State policies have come to favor an open market with the potential to create unhealthy competition that strays from the traditional goals of public institutions, such as increased access, better instruction, lower costs and greater efficiency, the authors contend. As higher education becomes more competition-driven, they argue, academic leaders feel compelled to chase revenues and rankings rather than to focus on providing a high quality education.

The Virginia General Assembly recently passed legislation offering the University of Virginia, the College of William and Mary and 16 other public institutions status as independent entities or chartered universities. By accepting lower state appropriations in return for freedom from state regulations, these institutions could enhance competitiveness in an aggressive market, while maintaining higher education's commitment to serving the public and lightening the burden on taxpayers. States such as Florida, Oregon, South Carolina, Washington and Wisconsin also have engaged in conversations involving talks of public corporations, charters and contracts, the report adds.

However, the authors maintain that steps in the direction of privatization indicate a greater crisis. When colleges and universities are under pressure to cut costs, measure performance and compete for students, grants and funding, the changing climate often leads to campuses operating more as a market-oriented institutions, rather than remaining dedicated to their core functions -- namely conducting valuable services that advance the well-being of individuals and the community. The report outlines four areas leading to this crisis, including:

• Inadequate financial support for low-income students;
• Rising costs and unaffordable tuition;
• Elusive outcomes, meaning most colleges and universities have failed to ask the right questions, such as the knowledge and skills students should have and how to assess whether or not they are learning them; and,
• Scholarship for sale. Recent studies have reported trends in undisclosed financial interests and researcher bias sponsoring companies.

Recommendations are offered for state policymakers and higher education leaders to forge a compact between higher education and the public. The authors also outline steps for lawmakers, colleges and universities, and the public to take in order to effectively serve students and the public. The report states it will take the combined efforts of these groups to ensure that the public purposes of higher education are defined and upheld.

The Futures Project is a five-year effort examining the impact of market forces in higher education. The 15-page report, Correcting Course: How We Can Restore the Ideals of Public Higher Education in a Market-Driven Era, is derived in part from the project's final report and is available at: http://www.futuresproject.org/