Breaking the Spiral of Disillusionment
A proposal to secure universities as infrastructure for Michigan and beyond.
Increasing educational attainment to support individuals, job creation, and the economy is one of the few bipartisan priorities in the United States. Espoused support for college attainment has not translated into adequate funding for higher education institutions. In Michigan, like much of the country, higher education has become increasingly unaffordable for many families in the state primarily because the state has failed to make investments to ensure affordability. Governor Gretchen Whitmer set the goal of reaching 60% of Michigan adults with a postsecondary credential by 2030, but without additional resources for regional public universities, the goal is likely unattainable. With insufficient support from the state, public universities are increasingly reliant on tuition dollars to make ends meet. Efforts to maximize tuition income prompts universities to compete with one another for students. This, in turn, can lead lawmakers and the public to perceive universities as self-serving. Research universities in Michigan have generally been able to grow their enrollments. Regional public universities have not fared as well. These universities are crucial to meeting attainment goals because they serve a wide range of students in particular geographic areas. Yet regional public universities are also the most exposed to state disinvestment because they are the least able to generate tuition revenue and therefore offer the shrinking number of students they enroll with a less resource-intensive education. Research shows a causal relationship between educational spending and student success, which means that declining spending likely means falling attainment. Taken together, the dynamics we outline yield a cyclical process. State disinvestment produces university revenue-seeking behavior and reduced opportunities for student success at regional public universities, which results in lower public confidence in higher education. We call this processes the "spiral of disillusionment." Interrupting the spiral of disillusionment is necessary to both meet attainment goals and make public higher education a resilient and stable social infrastructure for the 21st century. Regional public universities in Michigan need additional resources to support their students. Funding for the state's regional public universities will help to increase affordability, promote student success, bring the state closer to its attainment goals, and reinstall public confidence in higher education. These funds should not be earned through market-like competition. Competing for dollars prompts universities to behave self-interestedly. Yet, given many demands on Michigan's resources, it is not clear that regional public universities can get all the funds they need from the state government. To break the spiral of disillusionment, we propose a resource stabilization fund (RSF), drawn from both state and donor resources to increase and stabilize education spending at regional public universities. This fund will provide long-term financial stability while encouraging mission adherence, tuition discipline, and cooperation.
The fund has three objectives:
1. The RSF will support increased student attainment by providing additional resources to the state's regional public universities. High-quality evidence suggests that increased spending in higher education leads to increased graduation rates. Providing additional funds for regional public universities in Michigan will help to move the needle in achieving state attainment goals.
2. The RSF will hold public universities accountable to their core mission of undergraduate education. As a condition of participating in the RSF, universities will pledge to provide affordable access to Michigan's undergraduate students.
3. The RSF will hold state governments accountable for maintaining critical higher education infrastructure. Universities that enter the fund agreement voluntarily give up some of their autonomy and pledge a commitment to serve the state. In return, the state must demonstrate a good faith commitment to the universities.
This proposal offers three advantages over traditional ways of funding public higher education.
1. Pooling funds is more likely to be able to raise sufficient resources to better support students. This is a distinct advantage over policies that encourage universities to compete.
2. Restrictions placed on the RSF can be designed specifically to support the core mission of public higher education. Mission discipline is a key component of rebuilding public trust in higher education.
3. The RSF provides targeted support to regional public universities that need additional resources. Reinvigorating universities that provide affordable access is crucial to meeting Michigan's attainment goals.
