The dilemma of the public university
Created by Milton D. Glick (Arizona State University) on February 12, 2006
How much is enough.
Each year state universities appeal to the state legislatures for increased investment from the state. Often the response is "when will the universities be satisfied?" Universities correctly can demonstrate that with more investment they could produce higher quality results; and it will always be true. The question to be asked is what is the point of diminishing returns. In the for-profit marketplace, the "bottom line" is the bottom line, so there are inherent constraints. When the cost of improved quality of widgets is such that the required selling price causes demand to drop and net revenue to decrease, the for-profit enterprise makes alternative investments. We would argue that any increase in quality of education has a positive effect but the impact of this improvement must be weighed against other public sector investments.
Since the "bottom line" for universities is less tangible, it is more difficult to determine how much investment is enough.
Perhaps folks can suggest appropriate metrics that would help universities answer that question.
Each year state universities appeal to the state legislatures for increased investment from the state. Often the response is "when will the universities be satisfied?" Universities correctly can demonstrate that with more investment they could produce higher quality results; and it will always be true. The question to be asked is what is the point of diminishing returns. In the for-profit marketplace, the "bottom line" is the bottom line, so there are inherent constraints. When the cost of improved quality of widgets is such that the required selling price causes demand to drop and net revenue to decrease, the for-profit enterprise makes alternative investments. We would argue that any increase in quality of education has a positive effect but the impact of this improvement must be weighed against other public sector investments.
Since the "bottom line" for universities is less tangible, it is more difficult to determine how much investment is enough.
Perhaps folks can suggest appropriate metrics that would help universities answer that question.
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I think it is also a useful
I think it is also a useful to ask the funding bodies (in this case the State) "What kind of university do you want?" The answer may not be pretty, but it is likely to be revealing.
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