Newsflash: Less of a Handout is Still a Handout… Deal with It

By: Jeff Walden
March 6, 2010

Yesterday the streets of downtown Los Angeles were filled with 2,500 students and teachers who are pissed about the fact that the taxpayers aren’t going to keep footing the bill. Arnold, like a responsible Republican, says we need to fill the budget gap which includes cuts from everywhere. Apparently the students think that everywhere means everywhere except education. See, and I thought that universities were traditionally a place of forward thinking and logic. Guess I have been proven wrong once again.

This is how it really works – so pay attention you college kids, you might actually learn something. When you go to a state-run college of any type, the taxpayers of California are footing part of the bill. It’s called a¬†subsidy. This is why it costs more, a lot more, for someone from out of state to attend your state schools. The difference in price is that subsidy we just talked about. Let’s take a look at the figures for 2009-2010 tuition:

California Community Colleges California State University (CSU) University of California (UC) California Independent Colleges
Fees/Tuition $624 $4,827 $9,285 $30,144
Books/Supplies $1,566 $1,581 $1,500 $1,455
Miscellaneous $2,394 $3,535 $3,600 $3,218
Total $4,584 $9,943 $14,385 $34,817

Source: CaliforniaColleges.edu

Time for some math. If you’re reading this because you’re still in college and pissed that there’s someone out there (ME!) who’s attempting to deprive you of an education, don’t worry. I’ll give you the benefit of the doubt that because you have not yet completed your education you may not understand the complex¬†mathematical¬†comparisons¬†I’m about to make. You’re welcome to call me at (213) 910-4080 so we can get together and I will more simply explain this with pictures. I’ll bring the crayons.

We are all aware of a community college relative to a state university. The community college does not offer the same prestige nor array of programs but is generally done so at a lower price. UC’s offer more Ph.D. programs than CSU’s, are usually larger, and cost more. I say “usually” because San Diego State University is actually the largest of the California States and it probably can rival the smaller UC’s in size — namely UC Merced. Also, UC’s tend to have larger PhD. programs, which implies they do more research. Although more research doesn’t mean it’s better, it is a reliable indicator of the quality of education. Typically researching professors are more up-to-date within the field. Great – so we’re all aware of the differences between the first three columns of that table? It’s logical that the UC’s cost more than the CSU’s which cost more than the community colleges. But wait, what is that independent college column up there?

Independent colleges are schools run financially independent from the government, such as Loyola Marymount University. I know that with Obama running point for us it seems like a crazy idea to have an independent anything. Yes, we still do have private enterprise and it also comes in the form of school. The catch with an independent school is that you have to pay for everything. No taxpayers here to help you out. Unfair you say? Well they didn’t have any say in your birth so they shouldn’t have any obligation towards your education. The average total cost for an independent school happens to be a lot more than the total cost for a UC school. In fact, the difference for the 2009-2010 academic year is $20,432. Generally speaking, that’s the amount of subsidy it takes to send each student to a state run school. Here’s what’s even crazier – current students, this is where it’s okay if you don’t understand – that $20,432 in subsidy is over 70% of your out-of-pocket cost if you were to attend a UC school. It’s not really fair to compare the cost of independent schools to CSU’s or community colleges because they’re not on the same playing field. However, UC schools are.

I'm gunna hold my breath till I die!

So now that we have the figures in order, let’s take a step back and look at what’s happening. You’re a student and you are paying $14,385 per year for school. As a community we’ve been overspending so Arnold tells us it’s time to tighten the belt. In turn, you get huffy and organize a protest against the taxpayer, who gives you $20,432 per year for school. Jessica Naujoks was one of these protesters. She said “We are paying more to get less of an education. That’s why I’m out here today to protest against that.” What she forgot to add was that the taxpayers are paying less to get, well, nothing. However, they’re still paying something. I’m giving Jessica the benefit of the doubt that she’s hasn’t yet successfully mastered percentages. When I attended school we learned that for every action there is an opposite and equal reaction. In this situation, the action of paying something and receiving nothing (as a taxpayer) isn’t exactly opposite and equal. In fact, it’s negative. This is where that subsidy comes in again. Unless Albert has been discredited with his theory of¬†relativity, I think we can all agree that the taxpayers are still getting the short end of the stick here. Jessica, give me a call at the number above so we can chat. The entire situation reminds me of a little kid who tells his parents that he’s going to hold his breath until he dies. The¬†appropriate¬†response: go ahead and try.

The other brilliant thing I loved about the protests yesterday, they held up Interstate 880 in Oakland. For those of you who aren’t¬†familiar¬†with Oakland, that’s a big deal. Somehow, the idea of stopping traffic, utilizing law enforcement and state resources, and even injuring a student was the best use of their time. Shockingly, not a single protester pulled out their checkbooks when this was all over and reimbursed the state for any of the resources spent on¬†corralling¬†the crowd and treating the injured.

UCLA campus police estimated that about 500 people had gathered at Bruin Plaza. Chanting “Who’s got the power? We’ve got the power,” students and professors walked out of classes for the lunchtime protest. So if you have all the power, why do you need everyone else to pay for your education? Last time I checked, you had your protest and the budget is still being cut. See, this goes back to the principles of accounting. Anything we put in column A (subsidizing¬†your tuition) has to come out of column B (tax revenue). We add up all the numbers in both of these columns and the totals need to match. This is called balancing. The State of California is working towards a balanced budget which would involve requiring you to grow up, get a job, take out some loans and pay for your own education.

To each of you college students affected by this budget cut, know that I, Jeffery Walden, believe that someday you too will understand the value of earning something in it’s entirety. Granted, your education is still¬†subsidized¬†so it’s not going to be until you hit the pavement in the real world earning minimum¬†wage trying to make ends meet. When that day comes, feel free to give me a call and let me know that I’m wrong.

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5 Comments

  • Precisely on target! I see and appreciate great value in educating our community, especially our children. That being said, I would like to see some of that appreciation and respect paid to the tax-payers.

    We do not ‘owe’ an education to anyone simply because they exist. We educate as a benefit to society. This benefit is returned by students becoming thoughtful, productive citizens and paying it forward to the next generation. When there are increasing demands for more of a subsidy (handout)and no appreciation for the gift that has already been given I’m inclined to simply offer less. If only that were a choice that was mine.

    In the meantime, I do and will continue to support my local government balancing budgets. Not only does this benefit me and mine, but it also benefits these same students, in the long run.

    I appreciate that financing education can be difficult, I’m not denying that at all. However, it’s been my experience that we learn and appreciate that which we have worked for, to at least some degree.

  • Allan

    Ummmmmmm I was told there was going to be no math involved with this blog… Thanks.

  • Regan

    Jeff – I appreciate your point of view and where you’re coming from. I just still respectfully disagree with the tone taken.

    There is certainly a value to the general population in the availability of a public education – you yourself (I’m guessing) were the product of one for 12 years (unless you went to private school from first grade right on up). And part of having a public education system, including higher education, is that it is subsidized by the taxpayers – all the taxpayers. This is the same as the single people and the seniors, who complain about having to pay local taxes to fund the school system, just cause they don’t have any kids using the education system.

    The Governor has a responsiblity to try and balance the budget in California, a very long arduous tax that requires a lot more help than is being currently given (California is a failed state right now fiscally, and NY (where I live) and NJ are two examples of others that aren’t far behind). However, it is also the rights of the students to protest what they view as unfair tuition and fees increases. Nobody is 100% right or wrong on this, and ideally, some middle ground compromise will be reached.

    However, it is unfair to compare the UC system to a private (or as you call it “independent” university. The UC system, like CSU and Community Colleges, are there to benefit the residents of California, PARTICULARLY those who are not as financially capable as others. I’m sure there’s plenty of UCLA students whose parents can afford it whatever it costs, and doubt they were among many of the protesters. I myself am far from poor, but when I was attending college, it would have been a hardship or required a substantially larger amount of loans to attend a private university. If I had a blank check, you can be sure I would have gone to South Bend and been at Notre Dame in a heart beat. However, as I didn’t want to deal with almost $100,000 in loans (and this was over a decade ago) at the end of four years, I compromised and attended UMass (yes as a subsidized in-state student).

    You correctly point out why out-of-state tuition to public universities is so much higher – cause that’s not who those schools are there to serve. UCLA or Berkeley or UCSD are great schools, but their primary purpose is to educate Californians, not someone like me from the East Coast.

    I know protesters are a pain and things in Sacramento are a total mess, so everybody has to make cuts. But for a large percentage of Americans, a higher education is a huge financial hardship. The benefits offered by a public education are innumerable to so many people. Though you may not feel you receive any direct benefit from it – that’s just part of the deal being an American tax payer, no matter what state you live in.

    • Regan,

      I am actually a product of primarily private (independent) education from K-12. That doesn’t actually change any of my argument, I’m just responding to your comment.

      I agree that there’s a benefit and value to the general population when it comes to having an educated society. The inevitable question is how to quantify that value? In this case, the taxpayers are paying about $20k per year for each student. That amounts to approximately $100k for every degree. How do we decide if that person will use their degree to give back at least $100k to society? How do we average the output of everyone who has use subsidized schooling? There is no way to accurately answer these questions. We have to take a best guess and go from there. My point is simply that our best guess is way off target. I have a hard time seeing how giving a degree to a California citizen will bring back $100k+ to benefit society.

      I’d be interested to see the figures regarding research in this area. Of course we would need to take into peripheral effects of an education such as a reduction of crime and an increase in small businesses.

      Jeff

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