document resume ed 414 806 institutiondocument resume ed 414 806 he 030 699 title breaking the...
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DOCUMENT RESUME
ED 414 806 HE 030 699
TITLE Breaking the Social Contract. The Fiscal Crisis in HigherEducation.
INSTITUTION Council for Aid to Education, Santa Monica, CA.; Rand Corp.,Santa Monica, CA. Inst. on Education and Training.
SPONS AGENCY California Education Roundtable.REPORT NO CAE-100PUB DATE 1997-05-00NOTE 28p.; A report by the Commission on National Investment in
Higher Education. For related document, see HE 030 700.PUB TYPE Opinion Papers (120) -- Reports Evaluative (142)EDRS PRICE MF01/PCO2 Plus Postage.DESCRIPTORS Accountability; College Attendance; Demography; Economic
Factors; Educational Change; *Educational Finance;*Educational Policy; Financial Exigency; Financial Policy;*Financial Problems; *Higher Education; Income;Institutional Mission; Intercollegiate Cooperation;*Outcomes of Education; Paying for College; Productivity;*Socioeconomic Influences; Wages
ABSTRACTThis report presents the results of a 2-year study of the
fiscal condition of higher education in the United States. The study foundthat at a time when the level of education needed for productive employmentis increasing, college costs and demand are rising much faster than funding.Unless sweeping changes are made to control costs, millions of Americans willbe denied the opportunity to go to college, further exacerbating growing wagedisparities between rich and poor and threatening the economic and socialstability of the nation. Until now, institutions have covered rising costs bysharp tuition increases; however, such increases will shortly begin to keepAmericans from pursuing higher education. And if future tuition increases arecapped at the rate of inflation, colleges and universities will face amassive shortfall of resources by 2015. The report recommends that (1)political leaders reallocate public resources to reflect the growingimportance of higher education; (2) institutions improve performance-basedassessment, faculty productivity, and internal accountability; (3)
institutions pursue greater mission differentiation; (4) institutions developsharing arrangements to improve productivity; and (5) that all citizens beencouraged to pursue some form of postsecondary education. (MDM)
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I 2
I
U S
DE
PA
RT
ME
NT
OF
ED
UC
AT
ION
Offi
ce o
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catio
nal
Res
earc
h an
dIm
prov
emen
t
ED
U A
TIO
NA
LR
ESO
UR
CE
SE
RIC
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OR
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s do
cum
ent
has
been
repr
oduc
ed a
s
irece
ived
from
the
pers
on o
ror
gani
zatio
n
ongi
nattn
g it
O M
inor
cha
nges
have
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nm
ade
to In
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repr
oduc
tion
Qua
lity
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nts
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iew
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onto
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tilts
doc
u-
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nece
ssan
ly r
epre
sent
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ial
OE
RI p
ositi
onor
con
ey
PE
RM
ISS
ION
TO
RE
PR
OD
UC
EA
ND
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SE
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AT
E T
HIS
MA
TE
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AS
BE
EN
GR
AN
TE
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Y
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ND
TO
TH
E E
DU
CA
TIO
NA
LR
ES
OU
RC
ES
INF
OR
MA
TIO
N C
EN
TE
R (
ER
IC)
1
P
3
Mem
bers
of t
he C
omm
issi
onon
Nat
iona
l
Inve
stm
ent i
n H
ighe
r [d
ucal
-ion
Jose
ph L
. Dio
nne,
Cha
irm
an
and
CE
O, T
he M
cGra
w-H
ill
Com
pani
es (
Coc
hair
)
Tho
mas
Kea
n, P
resi
dent
,
Dre
w U
nive
rsity
(C
ocha
ir)
Rob
ert A
lbri
ght,
Exe
cutiv
e V
ice
Pres
iden
t (R
etir
ed),
Edu
catio
nal
Tes
ting
Serv
ice
John
Big
gs, C
hair
man
and
CE
O, T
IAA
-CR
EF
Edw
ard
Don
ley,
For
mer
Cha
irm
an, A
ir P
rodu
cts
and
Che
mic
als,
Inc
.
Mitc
hell
From
stei
n, C
hair
man
,
Pres
iden
t and
CE
O,
Man
pow
er I
ncor
pora
ted
Var
tan
Gre
gori
an, P
resi
dent
,
Bro
wn
Uni
vers
ity
D. B
ruce
Joh
nsto
ne, F
orm
er
Cha
ncel
lor,
Sta
te U
nive
rsity
of N
ew Y
ork
/9E
ioo
(519
7)
Dav
id L
asce
ll, A
ttorn
ey a
t Law
,
Hal
lenb
ack,
Las
cell,
Nor
ris
and
Zor
n
Har
old
McG
raw
, Jr.
, Cha
irm
an
Em
eritu
s, T
he M
cGra
w-H
ill
Com
pani
es
Bar
ry M
unitz
, Cha
ncel
lor,
Cal
ifor
nia
Stat
e U
nive
rsity
Dia
na N
atal
icio
, Pre
side
nt,
Uni
vers
ity o
f T
exas
at E
l Pas
o
Cha
rles
Ree
d, C
hanc
ello
r, S
tate
Uni
vers
ity S
yste
m o
f Fl
orid
a
Pied
ad F
. Rob
erts
on,
Supe
rint
ende
nt a
nd P
resi
dent
,
Sant
a M
onic
a C
omm
unity
Col
lege
Hok
e Sm
ith, P
resi
dent
,
Tow
son
Stat
e U
nive
rsity
John
Zeg
lis, G
ener
al C
ouns
el
and
Seni
or E
xecu
tive
Vic
e
Pres
iden
t, C
orpo
rate
Aff
airs
,
AT
&T
Com
pany
4
[x-
offic
io M
embe
rs
Rog
er B
enja
min
, Pre
side
nt,
Cou
ncil
for
Aid
to E
duca
tion
Judi
th S
. Eat
on, C
hanc
ello
r,
Min
neso
ta S
tate
Col
lege
s
and
Uni
vers
ities
To
Our
Rea
ders
Thi
s re
port
off
ers
the
resu
lts o
f a
two-
year
stu
dy b
y th
e C
omm
issi
on
on N
atio
nal I
nves
tmen
t in
Hig
her
Edu
catio
n. E
stab
lishe
d by
the
Cou
ncil
for
Aid
to E
duca
tion
in 1
994,
the
Com
mis
sion
was
ask
edto
exa
min
e th
e fi
nanc
ial h
ealth
of
Am
eric
a's
high
er e
duca
tion
sect
or.
Our
cen
tral
fin
ding
is th
at th
e pr
esen
t cou
rse
of h
ighe
r ed
ucat
ion
in w
hich
cos
ts a
nd d
eman
d ar
e ri
sing
muc
h fa
ster
than
fun
ding
isun
sust
aina
ble.
The
refo
re, w
e ca
ll up
on th
e na
tion
to a
ddre
ss th
e
fisc
al c
risi
s no
w, b
efor
e m
illio
ns o
f A
mer
ican
s ar
e de
nied
acc
ess
to a
col
lege
edu
catio
n.
We
reco
mm
end
incr
ease
d pu
blic
fun
ding
of
high
er e
duca
tion
and
wid
e-ra
ngin
g in
stitu
tiona
l ref
orm
s. T
hese
ref
orm
s w
ill r
equi
re
stro
ng le
ader
ship
and
new
coa
litio
ns. A
new
coa
litio
n in
itse
lf,
the
Com
mis
sion
ben
efitt
ed g
reat
ly f
rom
the
pres
ence
of
lead
ers
from
bot
h hi
gher
edu
catio
n an
d co
rpor
ate
Am
eric
a. T
he b
usin
ess
com
mun
ity h
as a
dir
ect i
nter
est i
n th
e ou
tcom
e of
edu
catio
nal
refo
rm a
nd b
road
exp
erie
nce
in th
e ki
nd o
f st
rate
gic
thin
king
and
inte
rnal
res
truc
turi
ng th
at w
ill b
e re
quir
ed o
f A
mer
ican
col
lege
s
and
univ
ersi
ties.
In a
sep
arat
e vo
lum
e, w
e pr
esen
t a s
erie
s of
tech
nica
l pap
ers
prep
ared
by R
AN
D in
sup
port
of
the
Com
mis
sion
's w
ork.
We
wis
h to
than
kou
r co
lleag
ues
on th
e C
omm
issi
on f
or th
e w
isdo
m a
nd e
xper
ienc
e
they
bro
ught
to o
ur ta
sk. W
e al
so w
ant t
o th
ank
RA
ND
sta
ff f
or th
eir
usua
l sou
nd a
nd p
rovo
cativ
e an
alys
is, a
nd R
oger
Ben
jam
in, P
resi
dent
of th
e C
ounc
il fo
r A
id to
Edu
catio
n, f
or h
is le
ader
ship
in th
is e
ffor
t.
Jose
ph L
. Dio
nne
(Coc
hair
)T
hom
as K
ean
(Coc
hair
)
Cha
irm
an a
nd C
EO
Pres
iden
tT
he M
cGra
w-H
ill C
ompa
nies
Dre
w U
nive
rsity
Ove
rvie
w
For
wel
l ove
r a
cent
ury,
the
Am
eric
an h
ighe
r ed
ucat
ion
syst
em
has
set t
he w
orld
sta
ndar
d fo
r
acad
emic
exc
elle
nce
and
equi
tabl
e
acce
ss f
or a
ll ci
tizen
s. T
he M
orri
ll
Act
of
1862
, whi
ch c
reat
ed th
e
land
gra
nt u
nive
rsity
, gua
rant
ees
that
all
citiz
ens
who
can
pro
fit
from
hig
her
educ
atio
n w
ill h
ave
acce
ss to
it. T
oday
, how
ever
,
ther
e ar
e si
gns
that
this
far
-sig
hted
soci
al c
ontr
act m
ay s
oon
be b
ro-
ken.
The
hig
her
educ
atio
n se
c-to
rby
whi
ch w
e m
ean
both
publ
ic a
nd p
riva
te in
stitu
tions
of p
osts
econ
dary
edu
catio
n an
d.
trai
ning
face
s ch
alle
nges
unpr
eced
ente
d in
its
hist
ory,
and
it is
flo
unde
ring
in r
espo
nse.
The
mon
etar
y di
ffic
ultie
s of
col
-
lege
s an
d un
iver
sitie
s, th
ough
t
for
a tim
e to
be
tem
pora
ry, n
ow
appe
ar to
be
part
of
long
-ter
m
tren
ds in
the
dem
and
for
enro
ll-
men
t and
the
supp
ly o
f fu
ndin
g.
Dem
and
has
incr
ease
d se
venf
old
sinc
e W
orld
War
II
and
is e
xpec
t-
ed to
con
tinue
gro
win
g ov
er th
e
next
two
deca
des.
At t
he s
ame
time,
ope
ratin
g co
sts
have
esc
alat
ed
and
publ
ic-s
ecto
r fi
nanc
ial s
uppo
rt
has
flat
tene
d. A
s a
resu
lt, m
any
colle
ges
and
univ
ersi
ties
have
had
to s
harp
ly in
crea
se tu
ition
and
fee
s
and
look
for
way
s to
con
trol
cos
ts
in o
rder
to a
void
fin
anci
al d
isas
ter.
To
exam
ine
the
dim
ensi
ons
and
impl
icat
ions
of
thes
e tr
ends
, the
Cou
ncil
for
Aid
to E
duca
tion
(CA
E)
laun
ched
the
Com
mis
sion
on N
atio
nal I
nves
tmen
t in
Hig
her
Edu
catio
n in
199
4. A
s m
embe
rsof
the
Com
mis
sion
, we
addr
esse
d
two
maj
or q
uest
ions
:
Will
the
curr
ent r
even
ue b
ase
and
fund
ing
sour
ces
be
suff
icie
nt f
or m
eetin
g hi
gher
educ
atio
n's
futu
re n
eeds
?
If n
ot, w
hat s
teps
can
be
take
n to
ave
rt a
fis
cal c
risi
s?
Wha
t we
foun
d w
as a
tim
e bo
mb
ticki
ng u
nder
the
natio
n's
soci
al
and
econ
omic
fou
ndat
ions
: At a
time
whe
n th
e le
vel o
f ed
ucat
ion
need
ed f
or p
rodu
ctiv
e em
ploy
men
t is
incr
easi
ng, t
he o
ppor
tuni
ty to
go
to
colle
ge w
ill b
e de
nied
to m
illio
ns o
f
Am
eric
ans
unle
ss s
wee
ping
cha
nges
are
mad
e to
con
trol
cos
ts, h
alt s
harp
incr
ease
s in
tuiti
on, a
nd in
crea
se
othe
r so
urce
s of
rev
enue
.
As
serv
ice-
rela
ted
jobs
hav
e co
me
to d
omin
ate
the
wor
kpla
ce, t
heco
llege
deg
reeo
r at
leas
t som
efo
rm o
f po
stse
cond
ary
educ
atio
nan
d tr
aini
ngha
s re
plac
ed th
ehi
gh s
choo
l dip
lom
a as
the
entr
y
card
into
rew
ardi
ng e
mpl
oym
ent.
Tho
se w
ho o
nly
fini
sh h
igh
scho
olor
dro
p ou
tsta
rt o
nth
e lo
wes
t run
g of
the
wag
e la
dder
and
will
see
thei
r re
al h
ourl
y
wag
es a
ctua
lly d
eclin
e ov
er th
eir
wor
king
live
s. U
nles
s th
e na
tion
mak
es a
con
cert
ed e
ffor
t to
rais
e
the
leve
l of
educ
atio
n an
d sk
ill o
f
thes
e A
mer
ican
s, th
e w
age
disp
ari-
ty b
etw
een
the
rich
and
the
poor
will
bec
ome
so la
rge
that
it w
ill
thre
aten
bot
h A
mer
ica'
s so
cial
sta
-
bilit
y an
d its
cor
e de
moc
ratic
val
-
ues.
Wid
espr
ead
acce
ss to
hig
her
educ
atio
n is
ther
efor
e cr
itica
l to
the
econ
omic
hea
lth a
nd s
ocia
l
wel
fare
of
the
natio
n.
The
hig
her
educ
atio
n se
ctor
, how
-
ever
, is
faci
ng a
cat
astr
ophi
c sh
ort-
fall
in f
undi
ng. G
iven
cur
rent
tren
ds in
bot
h fu
ndin
g an
d th
eco
sts
of h
ighe
r ed
ucat
ion,
the
defi
cit i
n op
erat
ing
expe
nses
for
the
natio
n's
colle
ges
and
univ
ersi
-
ties
will
hav
e qu
adru
pled
by
2015
.
Ass
umin
g tu
ition
incr
ease
s no
fast
er th
an in
flat
ion,
by
that
yea
rU
.S. c
olle
ges
and
univ
ersi
ties
will
fall
$38
billi
on s
hort
(in
199
5 do
l-
lars
) of
the
annu
al b
udge
t the
yne
ed to
edu
cate
the
stud
ent
popu
latio
n ex
pect
ed in
201
5.
If, h
owev
er, t
uitio
n in
crea
ses
at
curr
ent r
ates
basi
cally
dou
blin
gby
201
5the
impa
ct o
n ac
cess
will
be
deva
stat
ing:
eff
ectiv
ely
half
of
thos
e w
ho w
ant t
o pu
rsue
high
er e
duca
tion
will
be
shut
out
.
To
addr
ess
a cr
isis
of
such
prop
ortio
ns, w
e ca
ll fo
r a
two-
pron
ged
stra
tegy
: inc
reas
ed p
ublic
inve
stm
ent i
n hi
gher
edu
catio
n
and
com
preh
ensi
ve r
efor
m o
f
high
er e
duca
tion
inst
itutio
ns to
low
er c
osts
and
impr
ove
serv
ices
.
The
sec
ond
of th
ese,
inst
itutio
nal
refo
rm, i
s in
fac
t a p
rere
quis
ite f
or
incr
ease
d pu
blic
fun
ding
. Unl
ess
the
high
er e
duca
tion
sect
or
chan
ges
the
way
it o
pera
tes
byun
derg
oing
the
kind
of
rest
ruct
ur-
ing
and
stre
amlin
ing
that
suc
cess
-fu
l bus
ines
ses
have
impl
emen
ted,
it w
ill b
e di
ffic
ult t
o ga
rner
the
incr
ease
s in
pub
lic f
undi
ng n
eede
d
to m
eet f
utur
e de
man
ds.
Mor
e sp
ecif
ical
ly, w
e m
ake
thes
e
reco
mm
enda
tions
:
Am
eric
a's
polit
ical
lead
erst
he
Pres
iden
t, C
ongr
ess,
gov
erno
rs,
may
ors,
and
oth
er s
tate
and
loca
l off
icia
lssh
ould
rea
llo-
cate
pub
lic r
esou
rces
to r
efle
ct
the
grow
ing
impo
rtan
ce o
fed
ucat
ion
to th
e ec
onom
ic
pros
peri
ty a
nd s
ocia
l sta
bilit
yof
the
Uni
ted
Stat
es. P
ublic
fund
ing
of h
ighe
r ed
ucat
ion
has
stag
nate
d si
nce
1976
. It
is ti
me
for
the
natio
n to
reve
rse
this
pol
icy.
Inst
itutio
ns o
f hi
gher
edu
ca-
tion
shou
ld m
ake
maj
or s
truc
-
tura
l cha
nges
in th
eir
gove
r-
nanc
e sy
stem
so
that
dec
isio
n
mak
ers
can
asse
ss th
e re
lativ
e
valu
e of
dep
artm
ents
, pro
-gr
ams,
and
sys
tem
s in
ord
er
to r
eallo
cate
sca
rce
reso
urce
s.
Thi
s w
ill e
ntai
l im
prov
ing
perf
orm
ance
-bas
ed a
sses
smen
t,
defi
ning
and
mea
suri
ng f
acul
ty
prod
uctiv
ity, a
nd in
tegr
atin
g
acco
untin
g sy
stem
s.
As
part
of
thei
r ov
eral
l res
truc
-
turi
ng, c
olle
ges
and
univ
ersi
ties
shou
ld p
ursu
e gr
eate
r m
issi
ondi
ffer
entia
tion
to s
trea
mlin
e
thei
r se
rvic
es a
nd b
ette
r
resp
ond
to th
e ch
angi
ngne
eds
of th
eir
cons
titue
ncie
s.
Indi
vidu
al in
stitu
tions
and
part
s of
sta
tew
ide
syst
ems
shou
ld f
ocus
on
thei
r po
ints
of c
ompa
rativ
e ad
vant
age
rath
er th
an a
ll st
rivi
ng to
beco
me
full-
serv
ice
cam
puse
s.
Com
mun
ity c
olle
ges,
und
er-
grad
uate
uni
vers
ities
, and
rese
arch
uni
vers
ities
, for
exa
m-
ple,
sho
uld
embr
ace
diff
eren
t
mis
sion
s, g
ive
prio
rity
to a
ctiv
i-tie
s ce
ntra
l to
thos
e m
issi
ons,
and
redu
ce o
r el
imin
ate
mor
e-
mar
gina
l act
iviti
es.
Col
lege
s an
d un
iver
sitie
s sh
ould
deve
lop
shar
ing
arra
ngem
ents
to
impr
ove
prod
uctiv
ity. A
gre
ater
shar
ing
of r
esou
rces
requ
ire-
men
ts, c
lass
es, s
ervi
ces,
infr
a-
stru
ctur
e, li
brar
iesc
ould
lead
to s
igni
fica
nt s
avin
gs a
nd e
ven
impr
ove
serv
ices
.
It is
tim
e to
red
efin
e th
e ap
pro-
pria
te le
vel o
f ed
ucat
ion
for
all
Am
eric
an w
orke
rs in
the
21st
cent
ury.
All
citiz
ens
plan
ning
to
ente
r th
e w
orkf
orce
sho
uld
be
enco
urag
ed to
pur
suea
s a
min
imum
som
e fo
rm o
fpo
stse
cond
ary
educ
atio
n or
trai
ning
.
Thi
s re
form
age
nda
cann
ot b
e
impl
emen
ted
by th
e hi
gher
edu
-ca
tion
esta
blis
hmen
t alo
ne. A
sea
chan
ge o
f th
is s
ort r
equi
res
the
activ
e pa
rtic
ipat
ion
of le
ad-
ers
in g
over
nmen
t, bu
sine
ss, a
nd
educ
atio
n, a
s w
ell a
s th
e
Am
eric
an p
ublic
. With
this
repo
rt, w
e ho
pe to
con
vey
the
urge
ncy
of th
e si
tuat
ion.
In
our
view
, the
eno
rmou
s de
fici
ts f
ac-
ing
the
high
er e
duca
tion
sect
or
in th
e ne
ar f
utur
e ar
e m
ore
criti
-
cal t
han
the
muc
h pu
blic
ized
cris
is in
the
Soci
al S
ecur
ity s
ys-
tem
. Ind
eed,
unl
ess
Am
eric
a
man
ages
to o
pen
up th
e na
rrow
-in
g bo
ttlen
eck
of h
ighe
r ed
uca-
tion,
ther
e w
ill n
ot b
e en
ough
econ
omic
gro
wth
to s
uppo
rtan
y ve
rsio
n of
the
Soci
al
Secu
rity
pla
ns b
eing
dis
cuss
ed.
In v
ery
real
and
pra
ctic
al te
rms,
educ
atio
n is
the
key
to th
e
natio
n's
futu
re. A
mer
ican
s m
ust
ensu
re th
at it
bec
omes
a n
atio
n-
al p
rior
ity.
The Threat from Within
Rec
ent s
hift
s in
Am
eric
a's
econ
o-
my
have
mad
e hi
gher
edu
catio
n
mor
e si
gnif
ican
t tha
n ev
er. T
hein
dust
rial
jobs
that
onc
e fo
rmed
the
back
bone
of
the
econ
omy
are
dwin
dlin
g an
d w
ill p
rovi
de
empl
oym
ent f
or o
nly
10 p
erce
ntof
the
wor
kfor
ce b
y th
eye
ar20
00. T
he s
ervi
ce-r
elat
ed jo
bs
that
are
taki
ng th
eir
plac
e re
quir
ea
leve
l of
know
ledg
e an
d sk
ill
that
, for
the
mos
t par
t, ca
n be
gain
ed o
nly
thro
ugh
prog
ram
sof
fere
d at
col
lege
s an
d un
iver
si-
ties.
If w
orke
rs in
toda
y's
econ
o-
my
are
cut o
ff f
rom
hig
her
edu-
catio
n, th
ey w
ill b
e un
able
to
atta
in th
e pr
ofic
ienc
y le
vels
nee
d-
ed to
mas
ter
new
tech
nolo
gies
and
ente
r ne
w o
ccup
atio
ns.
Thi
s gr
adua
l shi
ft in
the
educ
a-
tiona
l req
uire
men
ts o
f to
day'
s
wor
kfor
ce h
as p
ut g
reat
pre
ssur
eson
the
entir
e ed
ucat
iona
l sys
tem
.
The
nat
ion
mus
t edu
cate
a la
rger
and
mor
e di
vers
e po
pula
tion
to
leve
ls n
ever
bef
ore
requ
ired
.
Tho
se w
ho a
re c
onte
nt w
ith a
high
sch
ool d
iplo
ma
or w
ith n
ot
com
plet
ing
high
sch
ool a
re li
kely
to f
ace
a bl
eak
econ
omic
fut
ure.
The
gro
win
g di
spar
ity in
the
inco
mes
of
the
rich
and
the
poor
is te
stim
ony
to th
is f
act.
If c
ur-
rent
tren
ds in
wag
es a
nd f
amily
inco
me
pers
ist,
the
econ
omic
disp
ariti
es th
at w
ill e
xist
in
Am
eric
a by
201
5 w
ill p
ose
a
grav
e da
nger
to s
ocie
ty:
A m
uch
larg
er p
ropo
rtio
n of
the
popu
latio
n w
ill f
all b
elow
the
stan
dard
of
livin
g co
nsid
-
ered
ave
rage
toda
y.
The
rea
l hou
rly
wag
es o
f th
e
aver
age
mal
e w
orke
r w
ill
decl
ine
by a
bout
25
perc
ent
com
pare
d to
wha
t the
ave
r-
age
mal
e ea
rned
in th
e
1970
s. F
or th
ose
near
the
botto
m o
f th
e w
age
dist
ribu
-
tion,
hou
rly
earn
ings
will
slip
by a
bout
44
perc
ent.
Whi
le f
amily
inco
mes
in th
e
high
est e
arni
ng b
rack
et w
illin
crea
se b
y 50
per
cent
, the
earn
ings
of
the
poor
est f
ami-
lies
will
dec
line
by a
bout
36
perc
ent f
rom
the
leve
ls o
f
com
para
ble
fam
ilies
in 1
976,
crea
ting
an u
npre
cede
nted
inco
me
gap
betw
een
the
natio
n's
rich
and
poo
r.
The
pro
port
ion
of im
mi-
gran
ts in
the
popu
latio
n w
ill
incr
ease
to 1
2 pe
rcen
t of
the
labo
r fo
rce
by 2
015.
Unl
ess
imm
igra
tion
polic
y ch
ange
s,m
ost o
f th
e ne
w im
mig
rant
sw
ill c
ome
from
Mex
ico
and
Cen
tral
Am
eric
a, a
grou
pw
ith h
isto
rica
lly lo
w le
vels
of e
duca
tion.
Col
lege
edu
catio
n w
ill n
ot b
e
equa
lly d
istr
ibut
ed a
mon
g
ethn
ic/r
acia
l gro
ups,
cre
atin
glit
tle c
hanc
e fo
r un
derr
epre
-
sent
ed g
roup
s to
impr
ove
thei
r st
anda
rd o
f liv
ing.
As
a re
sult,
the
educ
atio
nal a
ndec
onom
ic f
ault
lines
in th
e
Uni
ted
Stat
es w
ill b
e dr
awn
incr
easi
ngly
in te
rms
of
ethn
icity
and
rac
e.
Thi
s po
rtra
it of
the
futu
re is
not
a pr
edic
tion
but a
sim
ple
extr
ap-
olat
ion
of th
e ea
rnin
g pa
ttern
s,
desc
ribe
d m
ore
fully
bel
ow, o
f
the
20-y
ear
peri
od f
rom
197
6 to
1995
(th
e m
ost r
ecen
t yea
r fo
r
whi
ch d
ata
wer
e av
aila
ble)
. We
belie
ve th
e gr
owin
g ga
p be
twee
n
the
rich
and
the
poor
is o
ne o
fth
e gr
eate
st th
reat
s to
Am
eric
a's
soci
al o
rder
. At t
he h
eart
of
this
prob
lem
is th
e pr
ofou
nd c
hang
eth
at h
as ta
ken
plac
e in
the
leve
l
of k
now
ledg
e an
d sk
ill r
equi
red
to b
e a
prod
uctiv
e w
orke
r in
toda
y's
econ
omy.
Im
prov
ing
the
educ
atio
n an
d tr
aini
ng o
f al
lA
mer
ican
s is
, in
our
view
, the
only
way
to c
omba
t thi
s th
reat
and
redu
ce th
e gr
owin
g di
vide
.
Tre
nds
in W
ages
and
fam
ily In
com
eA
s ha
s be
en w
ell d
ocum
ente
d in
rese
arch
, wag
e an
d fa
mily
inco
me
disp
ariti
es h
ave
been
grow
ing
sinc
e 19
76. F
igur
e 1
show
s th
e di
stri
butio
n of
hou
rly
wag
es a
mon
g al
l mal
e w
orke
rs in
the
Uni
ted
Stat
es in
rea
l ter
ms,
adju
sted
for
infl
atio
n an
d
120
100 80 60 40 20 0
inde
xed
to 1
976.
(In
oth
erw
ords
, 197
6 is
sho
wn
as a
bas
e,
and
wag
es e
stim
ated
for
sub
se-
quen
t yea
rs a
re s
how
n as
a p
er-
cent
age
of w
hat t
hey
wer
e in
1976
.) T
he f
igur
e sh
ows
only
mal
e w
ages
, but
dis
pari
ties
in
fem
ale
wag
es a
re g
row
ing
at
abou
t the
sam
e ra
te. T
he to
plin
e sh
ows
chan
ges
in e
arni
ng
leve
ls f
or w
orke
rs a
t the
90t
h
90th
per
cent
ilec7
=, o
e op
pl17
=
e ...
..50
th p
erce
ntile
10th
per
cent
ile...
...
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
1976
1980
1985
1990
1995
2000
2005
2010
2015
figur
e 1L
ong-
Ter
m T
rend
s in
Hou
rly W
ages
of M
ale
Wor
kers
perc
entil
e of
all
mal
e w
age
earn
-
ers.
It s
how
s sl
ow g
row
th o
ver
the
20 y
ears
ext
rapo
late
d ou
t to
the
futu
re.
The
mes
sage
her
e is
that
the
high
est p
aid
wor
kers
will
hol
d
thei
r ow
n to
201
5. T
hose
in th
e
50th
per
cent
ilew
orke
rs r
ight
in th
e m
iddl
e of
the
dist
ribu
-
tionh
ave
lost
abo
ut 1
4 pe
rcen
tin
rea
l wag
es o
ver
the
20 y
ears
;
by 2
015,
they
will
be
earn
ing
abou
t 25
perc
ent l
ess
than
they
earn
ed in
197
6. B
ut th
e m
ost
stri
king
con
sequ
ence
of
curr
ent
tren
ds s
how
s up
in th
e fi
gure
s
for
wor
kers
in th
e bo
ttom
10
perc
ent.
If c
urre
nt tr
ends
con
-tin
ue, t
hese
wor
kers
will
be
earn
-
ing
little
mor
e th
an h
alf
of w
hat
they
ear
ned
in 1
976.
The
num
bers
for
fam
ily in
com
e
over
the
sam
e pe
riod
sho
w e
ven
wid
er d
ispa
rity
. As
Figu
re 2
show
s, f
amili
es a
t the
top
of th
e
scal
e w
ill b
e ea
rnin
g ab
out 5
0
9
perc
ent m
ore
in 2
015
than
they
did
in 1
976.
Thi
s is
not
bec
ause
men
's w
ages
are
goi
ng u
p, b
ut
beca
use
mor
e w
omen
are
wor
k-
ing
and
fam
ilies
tend
to b
e sm
alle
rth
an th
ey u
sed
to b
e, c
reat
ing
mor
e w
orke
rs in
the
econ
omy
per
fam
ily. T
hose
in th
e m
iddl
e of
the
inco
me
dist
ribu
tion
scal
e w
ill
be a
littl
e be
tter
off,
thou
gh n
otm
uch.
But
for
thos
e in
the
bot-
tom
10t
h pe
rcen
tilec
onsi
stin
gla
rgel
y of
sin
gle-
pare
nt f
amili
es
head
ed b
y w
omen
and
fam
ilies
of
low
-edu
cate
d im
mig
rant
pop
ula-
tions
we
see
a 36
per
cent
fal
l in
inco
me
com
pare
d to
wha
t fam
ilies
in th
at in
com
e br
acke
t ear
ned
in
1976
. In
that
yea
r, f
amili
es a
t
the
90th
per
cent
ile e
njoy
edin
com
e le
vels
nin
e tim
es g
reat
er
than
thos
e of
fam
ilies
at t
he 1
0th
perc
entil
e. B
y 19
93, t
he d
ispa
rity
was
twel
vefo
ld. A
t thi
s ra
te, t
he
ratio
will
exc
eed
sixt
een
to o
ne
by 2
015.
160
140
120
100 80 60 40 20
0 1976et
90th
per
cent
ile 0.0
16"
.00
50th
per
cent
ile
****
***
10th
per
cent
ile...
......
......
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
11
1980
1985
1990
1995
2000
2005
2010
figur
e 2L
ong-
Ter
m
Cha
nges
in th
e
Imm
igra
nt P
opul
atio
n
A d
oubl
ing
in th
e pr
opor
tion
ofim
mig
rant
s in
the
wor
kfor
ce
sinc
e th
e 19
70s
(ove
r 10
per
cent
of th
e w
orkf
orce
is n
ow f
orei
gn
born
) an
d th
e lo
wer
edu
catio
nal
leve
l of
mor
e-re
cent
imm
igra
nts
are
addi
tiona
l fac
tors
in th
e
Tre
nds
in fa
mily
Ear
ning
s
2015
grow
th o
f in
com
e di
spar
ity.
Figu
re 3
sho
ws
the
chan
ging
fac
e
of A
mer
ica'
s im
mig
rant
wor
k-
forc
e. I
n 19
70, o
nly
6 pe
rcen
t of
the
imm
igra
nt w
orkf
orce
cam
e
from
Mex
ico
or C
entr
al A
mer
ica
and
68 p
erce
nt c
ame
from
Eur
ope.
In
1990
, 21
perc
ent o
fth
e im
mig
rant
wor
kfor
ce c
ame
from
Mex
ico
or C
entr
al A
mer
ica
and
only
34
perc
ent f
rom
Eur
ope.
Bec
ause
the
educ
atio
nal
leve
l of
Mex
ican
and
Cen
tral
Am
eric
an im
mig
rant
s is
low
er
than
that
of
othe
r im
mig
rant
grou
ps, t
he e
arni
ngs
of m
ore-
rece
nt im
mig
rant
s ha
ve d
eter
iora
t-
ed r
elat
ive
both
to n
ativ
e w
orke
rs
and
to e
arlie
r im
mig
rant
s an
d ar
e
likel
y to
rem
ain
low
thro
ugho
ut
thes
e im
mig
rant
s' w
orki
ng li
ves.
If th
ese
tren
ds h
old,
a g
row
ing
prop
ortio
n of
wor
kers
will
hav
e
less
than
a h
igh
scho
ol d
iplo
ma
and
will
fac
e de
clin
ing
earn
ings
over
thei
r lif
etim
es.
Edu
catio
n an
d In
com
e:
the
Intim
ate
Link
The
sin
gle
mos
t im
port
ant f
acto
r
in d
eter
min
ing
leve
l of
inco
me
is
leve
l of
educ
atio
n. F
igur
e 4
show
sth
e di
stri
butio
n of
rea
l hou
rly
68%
Eur
ope/
Can
ada
6% M
exic
o/C
entr
al A
mer
ica
3% J
apan
/Kor
ea/C
hina
2% P
hilip
pine
s rwe-
e21
% A
ll ot
hers 34
% E
urop
e/C
anad
a
21%
Mex
ico/
Cen
tral
Am
eric
a
9% J
apan
/Kor
ea/C
hina
5% P
hilip
pine
s
31%
All
othe
rs
1970
1990
figur
e 3C
hang
ing
Com
posi
tion
of A
mer
ica'
s Im
mig
rant
Pop
ulat
ion
wag
es o
f m
ale
wor
kers
by
educ
a-
tion
leve
l. M
en w
ith a
col
lege
educ
atio
n ha
ve k
ept p
ace
with
infl
atio
n ov
er th
e 20
-yea
r pe
ri-
od, m
en w
ith s
ome
colle
ge
educ
atio
n ha
ve s
een
a de
clin
e
in r
eal i
ncom
e of
14
perc
ent,
and
men
with
onl
y a
high
scho
ol d
iplo
ma
have
lost
18
perc
ent.
Mea
nwhi
le, r
eal w
ages
of h
igh
scho
ol d
ropo
uts
have
decl
ined
by
25 p
erce
nt.
If th
ese
lines
are
dra
wn
out
anot
her
20 y
ears
usi
ng th
e
sam
e ra
tes,
the
resu
lt is
dev
asta
t-
ing.
By
2015
, mal
e w
orke
rsw
ith o
nly
a hi
gh s
choo
l edu
ca-
tion
will
hav
e lo
st 3
8 pe
rcen
t of
wha
t com
para
ble
mal
e w
orke
rs
earn
ed in
197
6. A
nd th
ose
with
out a
hig
h sc
hool
dip
lom
a
will
hav
e lo
st 5
2 pe
rcen
t in
real
earn
ings
ove
r th
e sa
me
peri
od.
If th
e U
.S. e
cono
my
cont
inue
s
to p
lace
a h
igh
valu
e on
a
colle
ge-e
duca
ted
wor
kfor
ce,
whi
ch w
e be
lieve
it w
ill, t
hen
only
col
lege
gra
duat
es w
ill b
eab
le to
hol
d th
eir
own
econ
omi-
cally
out
to 2
015.
Tho
se w
hoat
tend
som
e co
llege
will
not
do
badl
y, b
ut th
ose
who
sto
p pu
rsu-
ing
an e
duca
tion
befo
re o
r af
ter
grad
uatin
g fr
om h
igh
scho
ol w
ill
lose
gro
und
over
thei
r w
orki
ng
lives
.
Thi
s ec
onom
ic p
olar
izat
ion
ispa
rtic
ular
ly tr
oubl
esom
e in
that
a gr
owin
g pr
opor
tion
of th
epo
or w
ill b
eA
fric
an A
mer
ican
and
His
pani
c. L
ike
non-
His
pani
c w
hite
s, A
fric
anA
mer
ican
s an
d H
ispa
nics
suf
fer
lifel
ong
econ
omic
con
sequ
ence
sif
they
do
not p
ursu
e hi
gher
educ
atio
n. B
ecau
se la
rger
pro
-.
port
ions
of
thes
e tw
o gr
oups
fai
l
to g
o be
yond
hig
h sc
hool
, lar
ger
prop
ortio
ns o
f th
ese
grou
ps a
re
amon
g th
e po
or. F
igur
e 5
show
san
inde
x th
at c
onve
ys th
e ra
tio
120
100 80 60 40 20
441.
1114
EV
. 1t,
Col
lege
\71
Q1:
a2m
ato
Som
e co
llege
......
....
Hig
h sc
hool
......
Less
than
hig
h sc
hool
011
1111
1111
1,1.
11
,111
,1,1
1976
198
019
8519
9019
9520
0020
0520
1020
15
figur
e 4D
istr
ibut
ion
of R
eal M
ean
Hou
rly W
ages
for
Mal
e
Wor
kers
by
Edu
catio
n Le
vel
of th
e nu
mbe
r of
stu
dent
s in
high
er e
duca
tion
for
vari
ous
ethn
ic/r
acia
l gro
ups
to th
e to
tal
num
ber
of 1
8- to
29-
year
-old
s
in th
ose
grou
ps. T
he F
igur
epl
ots
chan
ges
in th
at in
dex
over
the
20 y
ears
and
ext
rapo
late
s
the
rate
s ou
t to
2015
.
As
of 1
995,
Asi
ans
and
Paci
fic
Isla
nder
s sc
ored
ove
r 40
on
this
inde
x, a
nd n
on-H
ispa
nic
whi
tes
scor
ed ju
st o
ver
30. I
nco
ntra
st, A
fric
an A
mer
ican
s
and
His
pani
cs s
core
d ab
out 2
0
and
18, r
espe
ctiv
ely.
Alth
ough
part
icip
atio
n ra
tes
are
incr
eas-
.60
.50
.40
ro.3
0
:16.
.20
.10 0 19
76 1
980
Asi
an o
r P
acifi
c Is
land
er
__""
Afr
ican
Am
eric
an
......
. S"
His
pani
c
ago
wt,
Whi
te, n
on-H
ispa
nic
.6%
IIII
iinII
iIII
rII
Ittii
IrII
IIIII
1985
1990
1995
2000
2005
2010
2015
figur
e 5R
ate
of P
artic
ipat
ion
of D
iffer
ent E
thni
c /R
acia
l
Gro
ups
in H
ighe
r E
duca
tion
ing
for
all g
roup
s, th
ey a
re c
ur-
rent
ly in
crea
sing
mor
e ra
pidl
y
for
whi
tes
and
Asi
ans
than
for
Afr
ican
Am
eric
ans
and
His
pani
cs. A
s a
resu
lt, th
ega
p co
uld
wid
en c
onsi
dera
bly
by 2
015.
Onl
y by
incr
easi
ngth
e pr
opor
tion
of A
fric
an
Am
eric
ans"
and
His
pani
cs g
oing
to c
olle
ge c
an th
e ga
p be
stab
ilize
d or
red
uced
.
It is
in th
e in
tere
st o
f al
l
Am
eric
ans
to p
rom
ote
high
er
leve
ls o
f ed
ucat
ion
and
trai
ning
for
thos
e w
ho a
re r
apid
ly lo
sing
earn
ing
pow
er in
Am
eric
an s
oci-
ety.
Low
leve
ls o
f ed
ucat
ion
are
pow
erfu
l pre
dict
ors
of w
el-
fare
dep
ende
ncy,
une
mpl
oy-
men
t, an
d in
carc
erat
ion,
all
of w
hich
are
ver
y co
stly
.
Mor
eove
r, b
y 20
15 th
e
num
ber
of w
orke
rs f
or e
very
retir
ee o
n So
cial
Sec
urity
will
be
at le
ast o
ne-f
ifth
wha
t it w
as 5
0 ye
ars
ago.
Thi
s m
eans
that
a s
hrin
king
prop
ortio
n of
Am
eric
anw
orke
rs w
ill n
ot o
nly
have
to m
aint
ain
U.S
. eco
nom
ic
com
petit
iven
ess
in th
e gl
obal
mar
ketp
lace
, but
will
als
o
have
to s
uppo
rt th
e ec
onom
-ic
bas
e of
the
rest
of
the
natio
n at
the
sam
e tim
e.
It is
mor
e im
port
ant t
han
ever
that
this
wor
kfor
ce b
e
adeq
uate
ly e
duca
ted
and
trai
ned.
It is
ther
efor
e in
the
natio
nal i
nter
est t
hat
the
wid
est p
ossi
ble
acce
ss
to h
ighe
r ed
ucat
ion
be
mai
ntai
ned.
12
Dim
ensi
ons
of th
e fis
cal C
risis
Will
Am
eric
a's
high
er e
duca
tion
sect
or b
e eq
uipp
ed to
mee
t the
need
s of
fut
ure
stud
ents
? B
y th
eye
ar 2
015,
the
natio
n m
ust b
e
prep
ared
to e
duca
te o
ver
4 m
il-
lion
mor
e st
uden
ts th
an it
edu
-ca
ted
in 1
995s
impl
y be
caus
eof
pop
ulat
ion
grow
th. I
f th
epr
opor
tion
of th
e po
pula
tion
that
wan
ts to
atte
nd c
olle
ge a
lso
incr
ease
s, a
s w
e th
ink
it sh
ould
,
then
that
num
ber
will
be
even
high
er. W
ill th
e re
venu
e ba
se o
f
colle
ges
and
univ
ersi
ties
be s
uffi
-
cien
t to
hand
le s
uch
an in
crea
se
in th
e nu
mbe
rs o
f st
uden
ts?
Our
ana
lysi
s sh
ows
that
if c
ur-
rent
fun
ding
tren
ds c
ontin
ue,
the
high
er e
duca
tion
sect
or w
ill
face
a c
alam
itous
sho
rtag
e of
reso
urce
s. U
nles
s pu
blic
fun
ding
incr
ease
s si
gnif
ican
tly a
nd in
sti-
tutio
ns u
nder
go f
unda
men
tal
inte
rnal
res
truc
turi
ng to
impr
ove
thei
r pr
oduc
tivity
, acc
ess
to h
igh-
er e
duca
tion
will
be
dram
atic
ally
redu
ced
in th
e fu
ture
.
Gro
wth
in D
eman
d
Enr
ollm
ent i
n A
mer
ica'
s co
llege
s
and
univ
ersi
ties
has
grow
n ra
pid-
ly s
ince
the
1930
s. T
his
grow
th
was
fue
led,
of
cour
se, b
y a
grow
-
ing
U.S
. pop
ulat
ionb
ut w
hile
the
popu
latio
n ha
s on
ly d
oubl
ed
1The
Nat
iona
l Cen
ter
for
Edu
catio
n St
atis
tics
has
publ
ishe
d pr
ojec
tions
to 2
006.
We
com
pute
d th
e pa
rtic
ipat
ion
rate
s by
age
impl
icit
in th
ose
proj
ectio
ns a
nd e
xtra
pola
ted
the
tren
ds in
thos
e ra
tes
thro
ugh
2015
. We
then
mul
tiplie
d es
timat
ed p
artic
ipat
ion
rate
s by
the
cens
us p
roje
ctio
ns o
f ag
e di
stri
butio
ns o
f th
e po
pula
tion
to 2
015.
2Sin
ce m
any
stud
ents
atte
nd c
olle
ge o
n a
part
-tim
e ba
sis,
pla
cing
sm
alle
r bu
rden
s on
inst
itutio
ns, t
hey
are
trad
ition
ally
cou
nted
as
hill-
time
equi
vale
nt s
tude
nts.
For
exam
ple,
a p
art-
time
stud
ent w
hose
cou
rse
load
is 7
0 pe
rcen
t of
a fu
ll-tim
e co
urse
load
is c
ount
ed a
s 0.
7 FT
E. B
y th
is m
etho
d, h
ighe
r ed
ucat
ion
will
hav
e to
edu
cate
appr
oxim
atel
y 3
mill
ion
mor
e FT
E s
tude
nts.
14 12
4210
-4
-,,
0 m
"0-
.aal
8"a
LI:
ii3'1
7. 6
.o ,
E c
D 0
Z .7
="
4E
.._
.
01
1,1
1,1
L.
1I
I1
11
11
11
11
11
1
1976
198
019
8519
9019
9520
0020
0520
10
figur
e 6P
ast E
nrol
lmen
t and
Pro
ject
ed D
eman
d
sinc
e 19
30, e
nrol
lmen
t in
high
ered
ucat
ion
has
expa
nded
tenf
old.
The
add
ition
al g
row
th r
efle
cts
the
phen
omen
al in
crea
se in
the
perc
enta
ge o
f A
mer
ican
s pu
rsui
ng
educ
atio
n be
yond
hig
h sc
hool
.
U.S
. pop
ulat
ion
grow
th is
expe
cted
to c
ontin
ue in
to th
ene
xt c
entu
ry, a
s is
the
rate
at
whi
ch A
mer
ican
s go
to c
olle
ge.
3
2015
As
Figu
re 6
sho
ws,
1 if
thes
e
tren
ds c
ontin
ue, t
he to
tal n
um-
ber
of s
tude
nts
in c
olle
ges
and
univ
ersi
ties
will
incr
ease
fro
m
the
1995
leve
l of
10.3
mill
ion
to a
bout
13.
2 m
illio
n fu
ll-tim
eeq
uiva
lent
(FT
E)
stud
ents
by
2015
.2
700
600
500
400
300
200
100 0 19
60
111=
IMO
II
HE
PI
I CP
I
1965
1970
1975
1980
1985
1990
figur
e 7G
row
th o
f Cos
ts to
Hig
her
Edu
catio
n In
stitu
tions
Gro
wth
in C
osh
The
cos
ts p
er s
tude
nt in
hig
her
educ
atio
n ha
ve a
lso
rise
n. I
n
fact
, the
y ha
ve g
row
n co
nsis
tent
ly
for
at le
ast 3
0 ye
ars,
esc
alat
ing
shar
ply
sinc
e th
e la
te 1
970s
. The
Hig
her
Edu
catio
n Pr
ice
Inde
x
(HE
PI),
pro
duce
d by
Res
earc
h
Ass
ocia
tes
of W
ashi
ngto
n, r
efle
cts
1995
the
real
incr
ease
s in
the
pric
es
paid
by
high
er e
duca
tion
inst
itu-
tions
for
goo
ds a
nd s
ervi
ces
(fac
ulty
sal
arie
s, f
or e
xam
ple)
.3
As
Figu
re 7
sho
ws,
the
HE
PI
rose
mor
e th
an s
ixfo
ld b
etw
een
1961
and
199
5, m
uch
fast
er
than
infl
atio
n as
mea
sure
d by
the
Con
sum
er P
rice
Ind
ex (
CPI
).
Bet
wee
n 19
80 a
nd 1
995,
the
annu
al a
vera
ge r
ate
of g
row
th
in th
e co
sts
of p
rovi
ding
hig
her
educ
atio
n ex
ceed
ed th
e C
PI b
ya
full
perc
enta
ge p
oint
. A s
ecto
rw
hose
cos
ts g
row
fas
ter
than
infl
atio
n fo
r an
ext
ende
d pe
riod
ultim
atel
y re
ache
s th
e lim
its o
f
avai
labl
e re
sour
ces,
as
has
been
dem
onst
rate
d in
the
heal
thca
re in
dust
ry.
Dec
line
in P
ublic
fund
ing
Whi
le b
oth
enro
llmen
t and
cos
ts
have
incr
ease
d ra
pidl
y ov
er th
e
last
two
deca
des,
pub
lic f
undi
ng
for
the
sect
or h
as n
ot k
ept p
ace.
Figu
re 8
sho
ws
tota
l pub
lic
appr
opri
atio
ns to
hig
her
educ
a-tio
n fr
om f
eder
al, s
tate
, and
loca
l
sour
ces
in r
eal t
erm
stha
t is,
adju
sted
for
infl
atio
nper
stu
-de
nt (
by w
hich
we
alw
ays
mea
n
FTE
stu
dent
) re
lativ
e to
197
6.4
As
can
be s
een,
pub
lic s
uppo
rt
per
stud
ent h
as ju
st k
ept p
ace
with
infl
atio
n, b
ut r
eal c
osts
per
stud
ent h
ave
grow
n by
abo
ut 4
0pe
rcen
t.
In e
ffec
t, th
e U
nite
d St
ates
has
been
und
erfu
ndin
g hi
gher
educ
atio
n si
nce
the
mid
-197
0s.
Figu
re 9
sho
ws
the
shar
e of
per
-
sona
l inc
ome
allo
cate
d th
roug
h
gove
rnm
ent a
ppro
pria
tions
3The
HE
PI m
easu
res
the
aver
age
chan
ge in
pri
ces
over
tim
e fo
r a
fixe
d ba
sket
of
good
s an
d se
rvic
es th
at h
ighe
r ed
ucat
ion
inst
itutio
ns b
uy to
sup
port
cur
rent
ope
ra-
tions
. The
se g
oods
and
ser
vice
s in
clud
e sa
lari
es o
f fa
culty
, adm
inis
trat
ion,
and
oth
erpr
ofes
sion
al a
nd n
onpr
ofes
sion
al p
erso
nnel
; con
trac
ted
serv
ices
suc
h as
com
mun
ica-
tions
and
tran
spor
tatio
n; s
uppl
ies
and
mat
eria
ls; e
quip
men
t; lib
rary
acq
uisi
tions
; and
utili
ties.
See
Inf
latio
n M
easu
res
for
Scho
ols,
Col
lege
s, a
nd L
ibra
ries
, Res
earc
h A
ssoc
iate
sof
Was
hing
ton,
Was
hing
ton,
D.C
., 19
95.
4Nat
iona
l Cen
ter
for
Edu
catio
n St
atis
tics,
Dig
est o
f E
duca
tiona
l Sta
tistic
s, U
.S.
Dep
artm
ent o
f E
duca
tion,
Off
ice
of E
duca
tiona
l Res
earc
h an
d Im
prov
emen
t,W
ashi
ngto
n, D
.C.,
vari
ous
year
s.
14
Zt.) a.
H
u)0
O C
D
-0 0
Oa)
1.5
>
oc co 92 ca
1.0
LS
Lir
-a
c- a)0.
5ai
1:3
CC
'6
2.5
2.0 0
Ii
I
Rea
l cos
t per
stud
ent
Rea
l gov
ernm
ent
supp
ort p
erst
uden
t
II
I
1976
197
8 19
80 1
982
1984
198
6 19
88 1
990
1992
199
4
figur
e 8G
over
nmen
t App
ropr
iatio
ns to
Hig
her
Edu
catio
n ov
er 2
0 Y
ears
to h
ighe
r ed
ucat
ion
from
196
0to
199
4. I
n th
e 19
60s
and
earl
y19
70s,
Am
eric
ans
doub
led
the
shar
e of
thei
r in
com
e th
at w
ent
to h
ighe
r ed
ucat
ionf
rom
$7
to a
bout
$14
per
$1,
000
earn
ed.
Sinc
e 19
76, h
owev
er, t
hat s
hare
has
been
ste
adily
dec
reas
ing.
Tax
rev
enue
s as
a s
hare
of
per-
sona
l inc
ome
actu
ally
incr
ease
d
slig
htly
ove
r th
e pe
riod
sho
wn
in F
igur
e 9.
In
fact
, the
y ha
ve
been
incr
easi
ng s
ince
197
6.
Wha
t has
cha
nged
is g
over
n-
men
t spe
ndin
g pr
iori
ties.
At
the
fede
ral l
evel
, the
gro
wth
of
entit
lem
ents
mos
t not
ably
,So
cial
Sec
urity
, Med
icar
e, a
nd
Med
icai
dhas
dom
inat
edfe
dera
l spe
ndin
g, a
s Fi
gure
10
illus
trat
es. M
anda
tory
spe
ndin
gon
ent
itlem
ent p
rogr
ams
and
inte
rest
on
the
natio
nal d
ebt c
on-
sum
ed a
bout
38
perc
ent o
f th
efe
dera
l bud
get i
n 19
65. I
n 19
95,
they
acc
ount
ed f
or a
bout
67
per-
cent
. The
ent
itlem
ent p
rogr
ams
focu
s la
rgel
y on
old
er A
mer
ican
s,
whi
ch m
eans
that
as
the
baby
boom
ers
age,
the
popu
latio
n
0 0 4-) QC
8 6rt
s,(5
)..c
'=a)
2 c
o_
14 12 10
15
4
draw
ing
on th
ese
prog
ram
s w
ill
incr
ease
. The
Con
gres
sion
al
Bud
get O
ffic
e es
timat
es th
at in
2005
less
than
a d
ecad
e fr
omno
wth
ese
prog
ram
s w
illco
nsum
e al
mos
t 75
perc
ent o
ffe
dera
l rev
enue
s. T
his
vast
inte
r-
gene
ratio
nal t
rans
fer
of w
ealth
is
sque
ezin
g hi
gher
edu
catio
n ou
tof
the
fede
ral b
udge
t.
ci;
oO
OO
Sta
teP
Fed
eral
Loca
l.''''
''''''''
'''..
......
.....
...19
6019
6419
6819
7219
7619
8019
8419
8819
92
figur
e 9S
hare
of P
erso
nal I
ncom
e A
lloca
ted
to H
ighe
r
Edu
catio
n S
ince
196
0
100 80 60 40 20
019
6519
9520
05
figu
re 1
0Ero
sion
of
fede
ral B
udge
tary
Dis
cret
ion
by E
ntitl
emen
ts
The
situ
atio
n at
the
stat
e an
dlo
cal l
evel
s is
ver
y si
mila
r. L
ike
the
fede
ral g
over
nmen
t, st
ate
and
loca
l gov
ernm
ents
are
incr
easi
ngly
allo
tting
gre
ater
shar
es o
f th
eir
budg
ets
to h
ealth
and
wel
fare
pro
gram
s. A
nd th
e
plig
ht o
f hi
gher
edu
catio
n in
stat
e an
d lo
cal b
udge
t bat
tles
is
exac
erba
ted
by r
apid
incr
ease
s in
spen
ding
on
corr
ectio
ns, m
ainl
y
pris
ons.
Fig
ure
11 s
how
s th
e
dist
ribu
tion
of s
tate
gov
ernm
ent
spen
ding
on
high
er e
duca
tion,
heal
th a
nd w
elfa
re, a
nd c
orre
c-
tions
fro
m 1
976
to 1
995
and
extr
apol
ates
the
tren
ds th
roug
h
2015
to in
dica
te th
eir
cons
e-
quen
ces.
Cle
arly
, gov
ernm
ent s
uppo
rt f
or
high
er e
duca
tion
has
decl
ined
both
eco
nom
ical
ly a
nd p
oliti
cally
over
a lo
ng p
erio
d, a
nd it
will
be
diff
icul
t to
brin
g it
back
to p
revi
-
ous
leve
ls. N
ow th
at th
ere
are
stri
ngen
t fis
cal l
imits
on
publ
ic
reso
urce
s, th
e go
vern
men
t is
begi
nnin
g to
ask
the
sam
e ki
nds
of q
uest
ions
of
colle
ges
and
uni-
vers
ities
that
it h
as a
sked
of
the
heal
th c
are
indu
stry
ques
tions
100
80 60 40 20 0 1976
198
019
8519
9019
9520
0020
0520
1020
15
abou
t cos
t, pr
oduc
tivity
, eff
icie
n-
cy, a
nd e
ffec
tiven
ess.
Unt
il
inst
itutio
ns o
f hi
gher
edu
catio
nca
n pr
ovid
e go
od a
nsw
ers
to
such
que
stio
ns, i
t will
be
diff
icul
tto
incr
ease
pub
lic s
uppo
rt a
nd
to r
egai
n th
e pr
iori
ty f
orm
erly
give
n to
hig
her
educ
atio
n in
fed
-
eral
, sta
te, a
nd lo
cal b
udge
ts.
orre
ctio
ns
Hea
lth a
nd w
elfa
re
16
figur
e 11
Dis
trib
utio
n of
Sla
te E
xpen
ditu
res
Tui
tion
Gro
wth
and
Ifs
Effe
ct o
n A
cces
s
Bec
ause
gov
ernm
ent f
undi
ng h
as
not k
ept p
ace
with
cos
ts, a
ll
inst
itutio
ns h
ave
had
to in
crea
se
tuiti
on a
nd f
ees.
The
top
line
in F
igur
e 12
plo
ts th
ese
incr
ease
s
as a
dep
artu
re f
rom
tuiti
on a
nd
2.5
2.0
1.5
1.0
0.5 0
fees
cha
rged
in 1
976.
Lik
e
gove
rnm
ent f
undi
ng a
nd c
osts
,
tuiti
on g
rew
at a
bout
the
rate
of in
flat
ion
duri
ng th
e la
te
1970
s, b
ut a
s co
sts
bega
n to
grow
in th
e ea
rly
1980
s, s
o
did
tuiti
on. B
y 19
94, t
uitio
nan
d fe
es h
ad r
isen
by
mor
e
than
100
per
cent
com
pare
dto
197
6.5
Rea
l tui
tion
per
stud
ent
11
Ii
I
Rea
l cos
t per
stud
ent
Rea
l gov
ernm
ent
supp
ort p
erst
uden
t
11
II
I
1976
197
8 19
80 1
982
1984
198
6 19
88 1
990
1992
199
4
figur
e 12
Gro
wth
of T
uitio
n
If a
ppro
pria
te s
teps
are
not
take
n, h
ighe
r ed
ucat
ion
coul
d
beco
me
so e
xpen
sive
that
mil-
lions
of
stud
ents
will
be
deni
ed
acce
ss. A
vera
ge r
eal t
uitio
n pe
r
stud
ent,
adju
sted
for
infl
atio
n,ap
prox
imat
ely
doub
led
in th
e
20 y
ears
fro
m 1
976
to 1
995.
Figu
re 1
3 sh
ows
that
if it
dou
-bl
es a
gain
in th
e ne
xt 2
0-ye
ar
peri
od (
1996
to 2
015)
, abo
ut6.
7 m
illio
n st
uden
ts w
ill b
epr
iced
out
of
the
syst
em. I
n
othe
r w
ords
, abo
ut o
ne o
ut o
fev
ery
two
peop
le w
e w
ould
expe
ct to
see
k a
colle
ge e
duca
-
tion
will
not
be
able
to p
ay f
or
it. E
ven
if tu
ition
incr
ease
s by
only
25
perc
ent o
ver
the
20
year
s, o
ne o
ut o
f fi
ve s
tude
nts
will
be
excl
uded
.
The
con
sequ
ence
s of
suc
h
excl
usio
n w
ill n
ot b
e co
nfin
ed
to th
e af
fect
ed s
tude
nt p
opul
a-tio
n. T
hose
who
are
den
ied
acce
ss to
col
lege
mig
ht n
ot b
e
able
to a
ffor
d to
sen
d th
eir
child
ren
to c
olle
ge 2
0 ye
ars
late
r. T
he s
ocia
l and
eco
nom
ic
ills
gene
rate
d by
inad
equa
te
leve
ls o
f ed
ucat
ion
will
rev
er-
bera
te th
roug
h su
cces
sive
gen
-
erat
ions
.
Incr
ease
d pr
ivat
e se
ctor
sup
port
of h
ighe
r ed
ucat
ion
by a
lum
ni,
othe
r in
divi
dual
s, c
orpo
ratio
ns,
and
foun
datio
ns c
an h
elp
and
has
done
so
alre
ady:
pri
vate
gran
ts, g
ifts
, and
end
owm
ent
inco
me
have
rou
ghly
dou
bled
over
the
past
two
deca
des.
5Fig
ure
12 s
how
s gr
oss
tuiti
on r
even
ue p
er s
tude
nt a
nd th
us d
oes
not s
peak
, for
exam
ple,
to th
e in
crea
sing
eff
orts
of
priv
ate
inst
itutio
ns to
low
er n
et tu
ition
pri
ce to
man
y st
uden
ts. F
ew s
tude
nts
actu
ally
pay
the
full
pric
e of
tuiti
on. I
ndee
d, o
ne r
easo
nfo
r tu
ition
incr
ease
s is
that
uni
vers
ities
and
col
lege
s ar
e at
tem
ptin
g to
mai
ntai
n ac
cess
for
low
-inc
ome
stud
ents
by
subs
titut
ing
aid
pack
ages
for
lost
sta
te s
uppo
rt.
( 4
1:'
17
14 12 10 8 6 2
4111
,
Est
imat
ed e
ffect
--""
ft. af
t,of
tuiti
on in
crea
ses
lam
pN
OM
.on
enr
ollm
ent
Enr
ollm
ent l
evel
req
uire
dto
mai
ntai
n cu
rren
tpa
rtic
ipat
ion
rate
s
iIit
2040
6080
Per
cent
age
of r
eal i
ncre
ase
in tu
ition
ove
r 19
95 le
vel
figur
e 13
Effe
ct o
f Inc
reas
ing
Tui
tion
on E
nrol
lmen
t
How
ever
, in
1995
, the
y pr
ovid
ed
only
8 p
erce
nt o
f hi
gher
edu
catio
n's
reve
nues
alm
ost t
he s
ame
perc
ent-
age
as th
ey p
rovi
ded
in 1
975.
Thi
spr
ivat
e se
ctor
and
end
owm
ent
inco
me
repr
esen
ts a
rel
ativ
ely
smal
l
100
prop
ortio
n of
the
tota
l hig
her
educ
atio
n bu
dget
and
is m
ore
conc
entr
ated
in th
e pr
ivat
e, r
ela-
tivel
y el
ite, a
nd w
ealth
y in
stitu
-tio
ns th
at s
erve
a s
mal
ler
shar
e
of th
e to
tal s
tude
nt p
opul
atio
n.6
The
Bot
tom
Lin
e
Giv
en f
undi
ng p
roje
ctio
ns, i
t will
be e
xtre
mel
y di
ffic
ult e
ven
to
mai
ntai
n to
day'
s en
rollm
ent
rate
s, le
t alo
ne p
rovi
de f
or th
ose
of th
e fu
ture
. Fig
ure
14 s
how
s
the
dim
ensi
ons
of th
e pr
oble
m.
Unt
il no
w, i
nstit
utio
ns h
ave
been
payi
ng f
or r
isin
g co
sts
by s
harp
tuiti
on in
crea
ses;
how
ever
, suc
h
incr
ease
s w
ill s
hort
ly b
egin
to
keep
Am
eric
ans
from
pur
suin
ghi
gher
edu
catio
n. I
f fu
ture
tuiti
on in
crea
ses
are
capp
ed a
t
the
rate
of
infl
atio
n, th
e hi
gher
educ
atio
n se
ctor
will
fac
e a
mas
-
sive
sho
rtfa
ll of
res
ourc
es b
y th
e
year
201
5.
In 1
995
dolla
rs, h
ighe
r ed
u-ca
tion
will
hav
e to
spe
nd
abou
t $15
1 bi
llion
in 2
015
to s
erve
fut
ure
stud
ents
ifco
sts
cont
inue
to g
row
at
curr
ent r
ates
. Ass
umin
g th
at
publ
ic a
ppro
pria
tions
tohi
gher
edu
catio
n co
ntin
ue to
follo
w c
urre
nt tr
ends
, gov
-
ernm
ent f
undi
ng w
ill b
eab
out $
47 b
illio
n in
that
year
. Tui
tion,
gra
nts,
and
endo
wm
ent i
ncom
e w
ill
acco
unt f
or a
noth
er $
66 b
il-
lion.
In
othe
r w
ords
, the
high
er e
duca
tion
sect
or w
ill
face
a f
undi
ng s
hort
fall
of
abou
t $38
bill
iona
lmos
t aqu
arte
r of
wha
t it w
ill n
eed.
For
tren
ds in
pri
vate
giv
ing,
see
Vol
unta
ry S
uppo
rt o
f E
duca
tion,
Cou
ncil
for
Aid
to E
duca
tion,
New
Yor
k, a
nnua
l. (S
ee a
lso
ww
w.c
ae.o
rg.)
160
140
120
100 80 60 40 20 0 19
76
Fut
ure
cost
s as
sum
ing
curr
ent s
truc
ture
1980
1985
1990
1995
2000
2005
2010
figur
e 14
fund
ing
Sho
rtfa
ll fa
cing
Hig
her
Edu
catio
nin
the
Nex
t 20
Yea
rs
Pres
iden
t Clin
ton
prop
osed
sign
ific
ant i
ncre
ases
in f
eder
al
stud
ent a
id p
rogr
ams
in h
isSt
ate
of th
e U
nion
mes
sage
in
Janu
ary
1997
. Fig
ure
15 o
ffer
s
2015
an in
itial
est
imat
e of
how
far
his
prop
osal
wou
ld g
o to
war
d
filli
ng th
e sh
ortf
all.
Whi
le it
is c
lear
ly a
ste
p in
the
righ
t
dire
ctio
n, th
e ad
ded
fund
ing
falls
far
sho
rt o
f w
hat w
ill b
e
need
ed if
inst
itutio
ns d
o no
tfi
nd a
way
to c
ontr
ol c
osts
.
Mor
eove
r, m
ost o
f th
e in
crea
ses
in C
linto
n's
prop
osal
are
in
9
160
140
120
100 80 60 40 20
0 1976
198
019
8519
9019
9520
0020
0520
1020
15
the
form
of
tax
cred
its, w
hich
will
ben
efit
mid
dle-
inco
me
grou
ps r
athe
r th
an th
e lo
wer
-
inco
me
grou
ps w
e ha
ve s
ingl
ed
out f
or a
ttent
ion.
Fut
ure
cost
s as
sum
ing
curr
ent s
truc
ture
Pre
side
nt's
pro
posa
l
tvilM
*.
.
figur
e 15
Effe
ct o
f Pre
side
nt C
linto
n's
Pro
posa
l
l.?
Inst
itutio
nal R
oadb
lock
s
Giv
en th
e m
agni
tude
of
the
defi
cit f
acin
g A
mer
ican
col
lege
s
and
univ
ersi
ties,
it is
sur
pris
ing
that
thes
e in
stitu
tions
hav
e no
tta
ken
mor
e se
riou
s st
eps
to
incr
ease
pro
duct
ivity
with
out s
ac-
rifi
cing
qua
lity.
8 M
any
have
adop
ted
cost
-sav
ing
mea
sure
s,
such
as
forc
ed r
etir
emen
ts a
nd
hiri
ng f
reez
es, b
ut m
ost o
f th
ese
actio
ns h
ave
been
par
tial a
ndad
hoc
.
The
mai
n re
ason
why
inst
itutio
ns
have
not
take
n m
ore
effe
ctiv
e
actio
n is
thei
r ou
tmod
ed g
over
-
nanc
e st
ruct
urei
.e.,
the
deci
-si
on-m
akin
g un
its, p
olic
ies,
and
prac
tices
that
con
trol
res
ourc
e
allo
catio
n ha
ve r
emai
ned
larg
ely
unch
ange
d si
nce
the
stru
ctur
e's
esta
blis
hmen
t in
the
19th
cen
tu-
ry. D
esig
ned
for
an e
ra o
fgr
owth
, the
cur
rent
str
uctu
re is
cum
bers
ome
and
even
dys
func
-
tiona
l in
an e
nvir
onm
ent o
f sc
arce
reso
urce
s. I
n fa
ct, i
mpe
dim
ents
to c
hang
e ar
e bu
ilt in
to th
e m
an-
agem
ent a
ssum
ptio
ns a
nd p
rac-
tices
of
colle
ges
and
univ
ersi
ties.
In th
at s
ense
, hig
her
educ
atio
n is
a pr
ime
exam
ple
of a
pub
lic-s
ec-
tor
inst
itutio
n st
rugg
ling
to d
eal
with
a c
hang
ed e
nvir
onm
ent.
The
aca
dem
ic d
epar
tmen
t, fo
r
exam
ple,
whi
ch is
the
hear
t of
the
curr
ent g
over
nanc
e st
ruct
ure,
is b
ased
on
the
assu
mpt
ion
that
facu
lty m
embe
rs s
houl
d go
vern
them
selv
es, m
akin
g al
l dec
isio
ns
abou
t wha
t sho
uld
be ta
ught
,
who
sho
uld
be h
ired
, and
so
fort
h. T
he c
ontin
ued
sway
of
the
depa
rtm
ent m
ight
be
just
ifie
d
if d
epar
tmen
ts w
ere
trul
y au
to-
nom
ous.
In
real
ity, h
owev
er,
they
fun
ctio
n as
par
ts o
f a
grea
ter
who
leon
e on
whi
ch th
ey a
refi
nanc
ially
dep
ende
nt.
Bes
ides
bei
ng d
ecen
tral
ized
and
depa
rtm
enta
lized
, ins
titut
ions
are
a m
aze
of h
iera
rchi
cal s
truc
-
ture
s op
erat
ing
inde
pend
ently
of
one
anot
her.
The
dea
n of
a c
ol-
lege
of
arts
and
sci
ence
s al
loca
tes
reso
urce
s am
ong
seve
ral d
ozen
soci
al s
cien
ce, h
uman
ities
, lif
e
scie
nce,
and
phy
sica
l sci
ence
depa
rtm
ents
. The
dea
n of
eng
i-ne
erin
g do
es th
e sa
me
for
a va
ri-
ety
of e
ngin
eeri
ng p
rogr
ams.
And
the
vice
pre
side
nt f
or o
per-
atio
ns m
anag
es f
acili
ties,
mai
nte-
nanc
e, p
arki
ng, a
nd c
ampu
s
secu
rity
. Adm
inis
trat
ors
repo
rtup
or
dow
n th
eir
narr
ow c
hain
s
of c
omm
and,
larg
ely
igno
rant
of
wha
t tho
se in
oth
er p
arts
of
the
inst
itutio
n ar
e do
ing.
Wha
t is
need
ed n
ow is
a s
ys-
tem
wid
e pr
oces
s fo
r re
allo
catin
g
reso
urce
s am
ong
depa
rtm
ents
and
othe
r pa
rts
of th
e in
stitu
-tio
n. J
ust a
s su
cces
sful
com
pa-
nies
hav
e le
arne
d to
foc
us o
n
thei
r co
re c
ompe
tenc
iest
hepr
oduc
ts a
nd s
ervi
ces
they
supp
ly a
t a b
ette
r qu
ality
and
low
er p
rice
than
thei
r co
m-
petit
orsh
ighe
r ed
ucat
ion
inst
itutio
ns a
nd s
yste
ms
need
to r
eexa
min
e th
eir
mis
sion
s
and
stre
amlin
e th
eir
serv
ices
to
serv
e th
ose
mis
sion
s. T
his
task
req
uire
s th
at o
pera
tions
be s
een
from
a b
road
per
spec
-
tive,
one
that
will
lead
to s
uch
ques
tions
as:
Whi
ch o
f ou
rce
nter
s, d
epar
tmen
ts, c
olle
ges,
or s
ervi
ces
enjo
y co
mpa
rativ
e
adva
ntag
e ov
er th
ose
of o
ther
educ
atio
n or
trai
ning
inst
itu-
tions
? W
ould
ano
ther
cla
ssic
s
prof
esso
r co
ntri
bute
to th
e
8By
incr
ease
s in
pro
duct
ivity
we
mea
n a
mea
sura
ble
redu
ctio
n in
cos
ts a
chie
ved
whi
lem
aint
aini
ng o
r im
prov
ing
effe
ctiv
enes
s w
ithou
t sac
rifi
cing
qua
lity.
20
educ
atio
nal m
issi
on m
ore
than
anot
her
mat
hem
atic
s pr
ofes
sor?
Mor
e th
an a
cqui
ring
add
ition
al
equi
pmen
t for
the
geop
hysi
cs
labo
rato
ry?
Mor
e th
anex
pand
ing
the
stud
ent c
ouns
el-
ing
prog
ram
? M
ore
than
repa
irin
g cl
assr
oom
and
dor
mi-
tory
roo
fs?9
The
cur
rent
gov
erna
nce
stru
c-tu
re a
ctua
lly p
reve
nts
inst
itu-
tions
and
inst
itutio
nal s
yste
ms
from
ask
ing
such
que
stio
ns.
Mor
eove
r, f
indi
ng a
nsw
ers
for
thes
e ty
pes
of q
uest
ions
will
requ
ire
not o
nly
a ne
w d
eci-
sion
-mak
ing
proc
ess,
but
a
conc
erte
d ef
fort
to g
ener
ate
data
on
the
cost
s an
d be
nefi
ts
of p
rovi
ding
dif
fere
nt s
ervi
ces.
With
the
stru
ctur
e as
it is
now
,
deci
sion
mak
ers
have
not
had
to c
hoos
e am
ong
com
petin
g
func
tions
, so
com
preh
ensi
ve
info
rmat
ion
syst
ems
have
not
evol
ved
to s
uppo
rt s
uch
deci
-
sion
s. H
ighe
r ed
ucat
ion
offi
-ci
als
sim
ply
do n
ot h
ave
the
info
rmat
ion
they
nee
d to
com
-
pare
mis
sion
s an
d fu
nctio
ns a
nd
unde
rsta
nd th
e tr
ade-
offs
amon
g th
e po
tent
ial a
lloca
tions
bein
g co
nsid
ered
.
Cle
arly
, the
se r
oadb
lock
s ne
ed
to b
e ta
ken
into
acc
ount
and
surm
ount
ed b
efor
e co
llege
s an
d
univ
ersi
ties
can
stre
amlin
e.
One
of
our
stro
nges
t rec
om-
men
datio
ns is
that
inst
itutio
nal
rest
ruct
urin
g, in
clud
ing
mis
sion
diff
eren
tiatio
n, b
e m
ade
a
natio
nal p
rior
ity.1
0 L
ike
the
heal
th c
are
indu
stry
, the
hig
her
educ
atio
n se
ctor
mus
t sys
tem
at-
ical
ly a
ddre
ss is
sues
of
cost
, pro
-
duct
ivity
, eff
icie
ncy,
and
eff
ec-
tiven
ess
as a
pre
requ
isite
for
incr
ease
s in
pub
lic s
ecto
r in
vest
-
men
ts. I
ndee
d, if
the
high
ered
ucat
ion
sect
or is
to g
et a
sym
-
path
etic
ear
fro
m le
gisl
ator
s, it
need
s st
rong
adv
ocac
y fr
om th
e
busi
ness
com
mun
ity, a
n al
ly it
is
unlik
ely
to w
in u
nles
s it
has
put
itsel
f th
roug
h th
e sa
me
sort
of
stre
amlin
ing
and
reen
gine
erin
g
that
the
busi
ness
com
mun
ity h
asim
plem
ente
d to
red
uce
cost
s an
d
impr
ove
serv
ice.
We
belie
ve th
at c
olle
ges
and
uni-
vers
ities
mus
t mak
e m
ajor
org
a-
niza
tiona
l cha
nges
. To
do s
o,
thei
r go
vern
ance
sys
tem
s m
ust b
e
chan
ged
so th
at th
ey c
an r
eallo
-
cate
sca
rce
reso
urce
s an
d pe
rmit
fund
amen
tal r
efor
m in
the
way
they
do
busi
ness
. Mor
eove
r, w
e
urge
aca
dem
ic le
ader
s to
act
ivel
y
invo
lve
the
busi
ness
com
mun
ity
in th
eir
rest
ruct
urin
g. B
usin
ess
lead
ers
have
ext
ensi
ve e
xper
ienc
e
in s
uch
mat
ters
, as
wel
l as
a
dire
ct in
tere
st in
the
outc
ome
ofed
ucat
ion
refo
rm.
9Unl
ike
larg
e re
sear
ch u
nive
rsiti
es, s
mal
l lib
eral
art
s co
llege
s do
not
hav
e m
ultip
le la
y-er
s of
man
agem
ent.
Whi
le th
is m
eans
that
thei
r ad
min
istr
ativ
e co
sts
are
low
er, i
t als
om
eans
that
ther
e is
less
roo
m to
man
euve
r in
tern
ally
whe
n re
stru
ctur
ing.
As
a re
sult,
othe
r m
easu
ress
uch
as s
hari
ng a
mon
g in
stitu
tions
and
cre
ativ
e us
e of
edu
catio
nal
tech
nolo
gybe
com
e ev
en m
ore
impo
rtan
t.
10It
is im
port
ant t
o no
te th
at s
ome
colle
ges
and
univ
ersi
ties
have
take
n im
port
ant s
teps
dow
n th
e re
stru
ctur
ing
path
, beg
inni
ng w
ith r
efor
ms
of a
dmin
istr
ativ
e fu
nctio
ns. T
hePe
w H
ighe
r E
duca
tion
Rou
ndta
ble,
for
exa
mpl
e, h
as p
erfo
rmed
a u
sefu
l rol
e in
bri
ng-
ing
toge
ther
lead
ers
of p
riva
te u
nive
rsiti
es a
nd c
olle
ges
to d
iscu
ss r
estr
uctu
ring
idea
s.(S
ee P
olic
y Pe
rspe
ctiv
es, a
con
tinui
ng s
erie
s ed
ited
by R
ober
t Zem
sky
and
Will
iam
Mas
sy, P
ew H
ighe
r E
duca
tion
Res
earc
h Pr
ogra
m.)
Im
port
ant e
xper
imen
ts a
re b
eing
cond
ucte
d by
hig
her
educ
atio
n le
ader
s in
Cal
ifor
nia
and
Flor
ida,
to n
ame
just
two
stat
es; a
nd th
e Fo
unda
tion
for
Inde
pend
ent H
ighe
r E
duca
tion
has
laun
ched
a p
ilot
proj
ect t
o as
sist
inde
pend
ent c
olle
ges
that
wan
t to
unde
rtak
e co
st c
onta
inm
ent e
ffor
ts.
The
se a
re is
olat
ed e
ffor
ts, h
owev
erno
t the
res
truc
turi
ng o
f th
e en
tire
high
er e
duca
-tio
n se
ctor
that
we
belie
ve is
an
urge
nt n
eces
sity
.
Rec
omm
enda
tions
The
pro
blem
s de
linea
ted
in th
isre
port
mus
t be
addr
esse
d. W
ech
alle
nge
Am
eric
a to
ado
ptan
d m
ake
into
goa
lsou
r re
c-om
men
datio
ns f
or p
uttin
g U
.S.
colle
ges
and
univ
ersi
ties
on a
path
to f
inan
cial
hea
lth a
nd
keep
ing
the
door
ope
n to
all
Am
eric
ans
will
ing
and
able
to
reap
the
bene
fits
of
high
er e
du-
catio
n. M
eetin
g th
is c
halle
nge
will
req
uire
a c
ombi
natio
n of
incr
ease
d go
vern
men
t inv
est-
men
t and
far
-rea
chin
g in
stitu
-
tiona
l ref
orm
s th
at w
ill p
rovi
de
high
-qua
lity
educ
atio
n at
low
er
cost
. Inc
reas
ed p
ublic
fun
ding
coul
d be
tied
to in
stitu
tiona
lre
form
to c
reat
e in
cent
ives
to
inno
vate
.
Rec
omm
enda
tion
1:
Am
eric
a's
polit
ical
lead
erst
he
Pres
iden
t, C
ongr
ess,
gov
erno
rs,
may
ors,
and
oth
er s
tate
and
loca
l
offi
cial
ssho
uld
real
loca
te p
ublic
reso
urce
s to
ref
lect
the
grow
ing
impo
rtan
ce o
f ed
ucat
ion
to th
e
econ
omic
pro
sper
ity a
nd s
ocia
l sta
-
bilit
y of
the
Uni
ted
Stat
es.
If th
e A
mer
ican
peo
ple
had
know
n ho
w th
e ed
ucat
iona
lre
quir
emen
ts o
f th
e w
orkf
orce
wer
e go
ing
to g
row
in th
e 20
year
s fr
om 1
976
to 1
995,
it is
doub
tful
that
they
wou
ld h
ave
allo
wed
pub
lic f
undi
ng to
sta
g-
nate
as
it ha
s. W
e be
lieve
Am
eric
ans
shou
ld n
o lo
nger
tole
rate
inac
tion:
The
nat
ion
shou
ld n
ot b
e al
low
ed to
con
-
tinue
to d
rift
tow
ard
educ
atio
nal
med
iocr
ity a
nd th
e om
inou
s le
v-
els
of e
cono
mic
ineq
ualit
y th
at
are
aris
ing.
We
are
conf
iden
t
that
onc
e th
e A
mer
ican
pub
lic
and
thei
r le
ader
s ar
e aw
are
of
the
dang
ers
of th
e cu
rren
t
cour
se, t
hey
will
act
to in
crea
se
publ
ic s
uppo
rt f
or h
ighe
r ed
uca-
tione
ven
if th
at m
eans
redu
cing
the
leve
l of
supp
ort
for
othe
r pu
blic
sec
tors
.
For
exam
ple,
we
belie
ve it
is a
reas
onab
le g
oal f
or th
e
natio
n's
gove
rnm
entth
e fe
d-er
al, s
tate
, and
loca
l lev
elst
oat
tem
pt to
red
uce
the
defi
cit
faci
ng th
e hi
gher
edu
catio
n
sect
or b
y ha
lf. A
t pre
sent
, the
fede
ral g
over
nmen
t pro
vide
s
slig
htly
less
than
a th
ird
of
gove
rnm
ent a
ppro
pria
tions
to
high
er e
duca
tion;
sta
te a
nd
loca
l gov
ernm
ents
pro
vide
the
rest
. The
fed
eral
gov
ernm
ent
mig
ht c
omm
it to
pro
vidi
ng
one-
thir
d of
the
publ
ic s
ecto
r
shar
e of
the
need
ed in
crea
se,
with
sta
te a
nd lo
cal g
over
n-
men
ts p
rovi
ding
the
rem
ain-
ing
two-
thir
ds. W
e re
aliz
e
that
this
is a
n au
daci
ous
goal
give
n th
e cu
rren
t str
esse
s on
fede
ral,
stat
e, a
nd lo
cal b
ud-
gets
, but
to d
o le
ss is
to p
ut
the
natio
n at
gra
ve r
isk.
Mee
ting
this
goa
l wou
ld p
rovi
de
50 p
erce
nt o
f th
e fu
ture
def
icit.
The
res
t of
the
shor
tfal
l wou
ldbe
mad
e up
by
prod
uctiv
ity
gain
s ac
hiev
ed th
roug
h th
e
stru
ctur
al r
efor
ms
desc
ribe
d
in th
e fo
llow
ing
thre
e re
com
-
men
datio
ns, a
nd b
y m
odes
tin
crea
ses
in tu
ition
and
fee
s.
Rec
omm
enda
tion
2:
Inst
itutio
ns o
f hi
gher
edu
catio
n
shou
ld m
ake
maj
or s
truc
tura
l
chan
ges
in th
eir
gove
rnan
ce s
yste
m
so th
at d
ecis
ion
mak
ers
can
asse
ss
the
rela
tive
valu
e of
dep
artm
ents
,
prog
ram
s, a
nd s
yste
ms
in o
rder
to
real
loca
te s
carc
e re
sour
ces.
In o
ur v
iew
, the
mos
t pre
ssin
g
refo
rm n
eede
d to
day
in th
e
high
er e
duca
tion
sect
or is
the
rede
sign
of
the
gove
rnan
ce
stru
ctur
e of
inst
itutio
ns s
o th
atde
cisi
on m
aker
s ca
n th
ink
and
act s
trat
egic
ally
. In
part
icul
ar,
colle
ges
and
univ
ersi
ties
mus
t
1. I
mpr
ove
perf
orm
ance
-
base
d as
sess
men
t.
Aca
dem
ic in
stitu
tions
mus
t dev
elop
a p
roce
ss
of a
sses
sing
the
cost
s an
d
bene
fits
of
prov
idin
g al
l
serv
ices
. The
goa
l of
this
effo
rt is
to p
rovi
de a
n
inte
grat
ed in
form
atio
nsy
stem
abo
ut a
ll co
sts,
incl
udin
g ca
pita
l cos
ts
and
the
valu
e-ad
ded
tost
uden
ts o
f th
eir
educ
a-
tiona
l exp
erie
nce.
We
belie
ve th
at u
nles
s hi
gher
educ
atio
n le
ader
s m
ove
tow
ard
syst
emat
ic p
erfo
r-
man
ce-b
ased
ass
essm
ent,
the
high
er e
duca
tion
sec-
tor
will
not
be
able
to
com
pete
eff
ectiv
ely
with
othe
r de
man
ds o
n pu
blic
fund
ing
in th
e fu
ture
.
2. D
efin
e an
d m
easu
refa
culty
pro
duct
ivity
.
Prod
uctiv
ity in
hig
her
edu-
catio
n is
, of
cour
se, d
iffi
cult
to d
efin
e, b
ut a
naly
sis
need
s
to b
e co
nduc
ted
to id
entif
y
prod
uctiv
ity m
easu
res
for
educ
atio
n in
gen
eral
and
for
facu
lty in
par
ticul
ar. T
he
aver
age
teac
hing
load
in
maj
or r
esea
rch
univ
ersi
ties,
for
exam
ple,
has
bee
n
redu
ced
from
abo
ut e
ight
cour
ses
a ye
ar to
fou
r or
five
. Ins
titut
ions
mus
t cal
-
cula
te th
e ef
fect
of
such
chan
ges
on c
osts
and
ben
e-
fits
. No
fund
amen
tal
rest
ruct
urin
g ca
n oc
cur
until
the
curr
ent i
ncen
tive
syst
em g
over
ning
fac
ulty
beha
vior
is c
hang
ed.
3. I
mpr
ove
inte
rnal
acco
unta
bilit
y in
fin
an-
cial
man
agem
ent.
Bud
getin
g an
d fu
nd
acco
untin
g sy
stem
s, f
or
exam
ple,
are
now
com
-
plet
ely
sepa
rate
. The
y
shou
ld b
e re
conc
iled
so
that
hig
her
educ
atio
n
lead
ers
have
acc
ess
to
timel
y "p
rofi
t and
loss
"
info
rmat
ion
in a
reas
for
whi
ch th
ey p
rovi
de
over
sigh
t.
Rec
omm
enda
tion
3:
As
part
of
thei
r ov
eral
l res
truc
tur-
ing,
col
lege
s an
d un
iver
sitie
s
shou
ld p
ursu
e gr
eate
r m
issi
on
diff
eren
tiatio
n to
str
eam
line
thei
r
serv
ices
and
bet
ter
resp
ond
to th
e
chan
ging
nee
ds o
f th
eir
con-
stitu
enci
es.
23
Gre
ater
mis
sion
dif
fere
ntia
tion
amon
g po
stse
cond
ary
educ
atio
n
inst
itutio
ns a
nd s
yste
ms
is th
e
only
way
to e
nsur
e ef
fect
ive
and
effi
cien
t pro
visi
on o
f al
l tea
ch-
ing
and
rese
arch
fun
ctio
ns o
ver
the
next
sev
eral
dec
ades
. The
curr
ent m
issi
on "
cree
p"e.
g.,
com
mun
ity c
olle
ges
atte
mpt
ing
to b
ecom
e fo
ur-y
ear
degr
ee-
gran
ting
inst
itutio
ns, s
tate
univ
ersi
ties
beco
min
g re
sear
ch
cent
ers,
and
res
earc
h un
iver
si-
ties
offe
ring
rem
edia
l ins
truc
-
tionv
iola
tes
the
mis
sion
dif
-fe
rent
iatio
n pr
inci
ple.
If h
ighe
r ed
ucat
ion
inst
itutio
ns
and
syst
ems
focu
s on
thei
r
poin
ts o
f co
mpa
rativ
e ad
vant
age
with
in th
e ov
eral
l eco
logy
of
high
er e
duca
tion,
bot
h pr
oduc
-tiv
ity a
nd im
prov
ed q
ualit
y w
ill
resu
lt.Sp
ecif
ical
ly, t
he c
omm
u-
nity
col
lege
s, u
nder
grad
uate
univ
ersi
ties,
and
res
earc
h un
i-
vers
ities
sho
uld
embr
ace
diff
eren
t
mis
sion
s, g
ive
prio
rity
to a
ctiv
i-
ties
cent
ral t
o th
ose
mis
sion
s, a
nd
redu
ce o
r el
imin
ate
mor
e-m
argi
n-
al a
ctiv
ities
." W
e re
com
men
dth
e fo
llow
ing
spec
ific
s:
1. C
omm
unity
col
lege
s
shou
ld ta
ke a
lead
ersh
ipro
le in
wor
kfor
ce p
repa
ra-
tion.
The
y ne
ed to
exp
end
mor
e ef
fort
on
educ
atio
nan
d tr
aini
ng ta
rget
ed to
mul
tiple
con
stitu
enci
es, p
ar-
ticul
arly
wor
kfor
ce p
repa
ra-
tion,
adu
lt ed
ucat
ion,
rem
e-
dial
edu
catio
n, a
nd E
nglis
has
a S
econ
d L
angu
age.
As
our
anal
ysis
sug
gest
s, o
ne o
f
the
natio
n's
mos
t pre
ssin
g
soci
al n
eeds
is im
prov
ing
the
educ
atio
n le
vel o
f al
l
soci
oeco
nom
ic g
roup
s to
avoi
d cr
eatin
g a
larg
er a
nd
mor
e pe
rman
ent u
nder
clas
s.
Inst
itutio
ns o
f hi
gher
edu
ca-
tion
need
to b
ecom
e m
ore
activ
e pa
rtne
rs in
this
ent
er-
pris
e. B
ecau
se e
mpl
oyer
s, h
igh
scho
ols,
and
loca
l gov
ernm
ents
are
impo
rtan
t sta
keho
lder
s,
com
mun
ity c
olle
ges
shou
ld
deve
lop
long
-ter
m s
trat
egic
part
ners
hips
with
thes
e en
ti-
ties.
We
reco
mm
end
that
Con
gres
s an
d th
e st
ates
con
tin-
ue to
pro
vide
ince
ntiv
es f
or
empl
oyer
s, h
igh
scho
ols,
loca
l
auth
oriti
es, a
nd c
olle
ges
to
wor
k to
geth
er in
des
igni
ng a
nd
fund
ing
scho
ol-t
o-w
ork
pro-
gram
s th
at r
each
out
to th
eco
mm
unity
at l
arge
and
to
unde
rrep
rese
nted
gro
ups
inpa
rtic
ular
.
As
part
of
this
initi
ativ
e, c
ol-
lege
s ne
ed to
iden
tify,
str
engt
h-
en, a
nd g
ive
visi
bilit
y to
pro
-
gram
s al
read
y fo
cuse
d on
this
outc
ome.
The
se s
houl
d be
cont
inue
d, im
prov
ed, a
nd b
uilt
upon
. To
enco
urag
e co
mm
it-m
ent t
o su
ch s
ocia
lly r
espo
n-
sive
initi
ativ
es, c
olle
ges
shou
ld e
valu
ate
and
rew
ard
facu
lty w
ork
in w
ays
that
prov
ide
the
righ
t inc
entiv
es.
2. S
tate
und
ergr
adua
te in
stitu
-tio
ns s
houl
d ta
ke th
e le
ad in
teac
her
trai
ning
and
are
as
rela
ted
to r
egio
nal e
cono
mic
deve
lopm
ent.
Elig
ibili
ty f
orco
llege
will
not
impr
ove
amon
g lo
w-i
ncom
e so
cioe
co-
nom
ic g
roup
s un
less
Kl2
scho
ol r
efor
m s
ucce
eds,
and
trai
ning
and
ret
rain
ing
ofK
-12
teac
hers
is a
pre
requ
i-
site
to th
at s
ucce
ss. R
ecen
t
stud
ies
show
that
teac
her
trai
ning
in A
mer
ica
is in
dis
-
arra
y. W
e be
lieve
the
mos
t
effe
ctiv
e re
spon
se to
this
natio
nal p
robl
em is
for
sta
te
unde
rgra
duat
e in
stitu
tions
to
assu
me
cent
ral l
eade
rshi
p fo
r
teac
her
trai
ning
and
to m
ake
teac
her
trai
ning
one
of
thei
r
high
est p
rior
ities
. In
addi
-tio
n, f
acul
ty o
f st
ate
unde
r-gr
adua
te in
stitu
tions
sho
uld
be e
ncou
rage
d to
ass
ume
a
stro
nger
lead
ersh
ip r
ole
inre
sear
ch a
nd te
chni
cal a
ssis
-
tanc
e fo
r re
gion
al e
cono
mic
deve
lopm
ent.
Thi
s ap
plie
dre
sear
ch c
apab
ility
will
ena
ble
thes
e in
stitu
tions
to r
elat
e to
the
need
s of
the
regi
ons
inw
hich
they
exi
st.1
2 T
he in
de-
pend
ent c
olle
ge s
ecto
r sh
ould
focu
s on
its
com
para
tive
adva
ntag
e: th
e lib
eral
art
s
unde
rgra
duat
e m
issi
on.
11A
Fra
mew
ork
for
Lin
king
Res
ourc
es to
Mis
sion
in H
ighe
r E
duca
tion,
pro
vide
d in
this
repo
rt's
vol
ume
of s
uppo
rtin
g an
alys
is, p
rese
nts
a se
t of
anal
ytic
tool
s us
eful
for
any
inst
itutio
n or
sys
tem
of
high
er e
duca
tion
cont
empl
atin
g ch
ange
s in
its
mis
sion
.
12T
his
is e
spec
ially
per
tinen
t in
fast
-gro
win
gst
ates
hav
ing
larg
e ur
ban
popu
latio
nsan
d ec
onom
ical
ly d
epre
ssed
are
as.
24
3. T
he m
ajor
res
earc
h un
iver
-si
ties
shou
ld f
ocus
on
the
prom
otio
n of
res
earc
h an
d
grad
uate
edu
catio
n.
To
help
mai
ntai
n th
e cr
iti-
cal f
undi
ng n
eede
d to
sup
-
port
res
earc
h, a
Nat
iona
l
Res
earc
h U
nive
rsity
Act
shou
ld b
e pa
ssed
that
allo
ws
fede
ral i
nves
tmen
t in
rese
arch
to b
e co
ncen
trat
ed
in th
e na
tion'
s to
p-ra
nked
rese
arch
uni
vers
ities
.
Unl
ike
its in
tern
atio
nal
com
petit
ors
such
as
Japa
n
and
Ger
man
y, w
hich
dir
ect
thei
r sc
arce
fed
eral
res
ourc
es
to a
few
elit
e re
sear
ch
grou
ps, t
he U
nite
d St
ates
spre
ads
its d
win
dlin
g fe
der-
al d
olla
rs a
mon
g m
ore
than
800
univ
ersi
ties
and
labo
ra-
tori
es. F
rom
197
6 to
199
5,re
sear
ch f
undi
ng g
rew
onl
y
slig
htly
, but
the
num
ber
ofin
stitu
tions
rec
eivi
ng th
is
fund
ing
incr
ease
d by
sev
eral
hund
red.
Eve
n m
ore
impo
rtan
t, m
ost o
f th
ein
stitu
tions
now
rec
eivi
ng
fede
ral s
uppo
rt f
or r
esea
rch
are
not e
ven
Car
negi
e-ra
ted
rese
arch
and
doc
tora
te-
gran
ting
univ
ersi
ties.
13
Thi
s po
orly
targ
eted
fun
d-
ing
may
not
hav
e m
atte
red
muc
h in
the
gold
en y
ears
of
U.S
. sci
ence
and
tech
nolo
gy
deve
lopm
ent,
but n
ow, w
ith
the
decl
ine
in f
eder
al s
up-
port
of
rese
arch
, it m
ay b
ea
seri
ous
thre
at to
the
long
-
term
hea
lth o
f th
e na
tion'
s
econ
omy.
14
Rec
omm
enda
tion
4:
Col
lege
s an
d un
iver
sitie
s sh
ould
deve
lop
shar
ing
arra
ngem
ents
to
impr
ove
prod
uctiv
ity.
As
incr
ease
d m
issi
on d
iffe
rent
ia-
tion
is a
chie
ved,
a g
reat
er s
hari
ng
of r
esou
rces
will
lead
to
impr
oved
pro
duct
ivity
of
the
entir
e hi
gher
edu
catio
n sy
stem
:
1. A
lignm
ent.
Seam
less
alig
nmen
t of
unde
rgra
duat
e
requ
irem
ents
, tra
nsfe
r
requ
irem
ents
, and
join
t
teac
hing
and
deg
ree-
prod
ucin
g ar
rang
emen
ts
betw
een
com
mun
ity c
ol-
lege
s, s
tate
und
ergr
adua
te
univ
ersi
ties,
and
pub
lic
rese
arch
uni
vers
ities
is n
ow
tech
nica
lly f
easi
ble
and
shou
ld b
e ac
hiev
ed o
ver
the
next
dec
ade.
Giv
en th
e be
n-ef
its o
f th
e ne
w e
duca
tiona
l
tech
nolo
gies
aff
orde
d by
the
Inte
rnet
, it i
s tim
e fo
r in
ter-
segm
enta
l alig
nmen
t of
unde
rgra
duat
e in
stru
ctio
n to
be e
ncou
rage
d by
pol
icym
ak-
ers
insi
de a
nd o
utsi
de h
ighe
r
educ
atio
n. A
chie
vem
ent o
f
this
goa
l alo
ne w
ould
sub
-
stan
tially
incr
ease
und
ergr
ad-
uate
par
ticip
atio
n ra
tes.
13T
he to
p 30
sci
ence
and
eng
inee
ring
dep
artm
ents
gar
ner
70 p
erce
nt o
f fe
dera
lre
sear
ch s
uppo
rt w
hile
the
othe
r 30
per
cent
is s
hare
d am
ong
seve
ral h
undr
ed o
ther
such
dep
artm
ents
.
14W
e le
ave
open
to p
ublic
deb
ate
the
mos
t app
ropr
iate
mec
hani
sm f
or im
plem
entin
gth
is r
efor
m. O
ne o
ptio
n w
ould
be
for
the
Nat
iona
l Sci
ence
Fou
ndat
ion
to r
eque
stun
iver
sitie
s to
pro
vide
thei
r qu
alif
icat
ions
in e
ach
rese
arch
are
a. T
he F
ound
atio
nco
uld
then
iden
tify
the
mos
t qua
lifie
d in
eac
h ar
ea a
nd g
uara
ntee
them
a m
inim
umle
vel o
f su
ppor
t. A
noth
er o
ptio
n w
ould
be
for
the
fede
ral g
over
nmen
t to
prov
ide
fund
ing
to g
radu
ate
stud
ents
for
vou
cher
s th
at c
ould
be
used
at t
he in
stitu
tion
ofth
eir
choi
ce. T
he r
esul
ting
com
petit
ion
wou
ld e
ffec
tivel
y de
crea
se th
e fr
agm
enta
tion
of f
undi
ng to
res
earc
h un
iver
sitie
s. W
hate
ver
the
mec
hani
sm, w
e be
lieve
ther
e is
grea
t val
ue in
con
cent
ratin
g sc
arce
dol
lars
in th
e m
ost w
orth
y in
stitu
tions
. Thi
s do
esno
t mea
n, h
owev
er, t
hat e
lite
rese
arch
uni
vers
ities
nee
d no
t im
prov
e th
eir
effo
rts
todi
vers
ify
the
ethn
ic m
akeu
p of
thei
r fa
culti
es. T
he f
ailu
re to
tap
pote
ntia
l top
-lev
elsc
ient
ific
tale
nt f
rom
all
segm
ents
of
soci
ety
rem
ains
a s
igni
fica
nt b
arri
er to
ful
l rea
l-iz
atio
n of
Am
eric
a's
hum
an c
apita
l.
25
2. C
lass
es. E
very
col
lege
and
univ
ersi
ty te
ache
s m
icro
-
econ
omic
s at
the
fres
hman
leve
l; vi
rtua
lly e
very
rese
arch
uni
vers
ity o
ffer
s
seve
ral i
ntro
duct
ory
stat
is-
tics
cour
ses.
Dep
artm
ents
and
univ
ersi
ties
shou
ld c
ol-
labo
rate
to p
ool i
ntro
duc-
tory
cou
rses
and
inst
ruct
ors
as a
way
to s
ave
reso
urce
s
and
prov
ide
the
best
inst
ruct
ion
avai
labl
e in
the
subj
ect.
Use
of
the
Inte
rnet
may
fac
ilita
te
this
task
.
3. S
ervi
ces.
Joi
nt o
utso
urci
ngof
fun
ctio
ns r
angi
ng f
rom
phys
ical
pla
nt m
aint
enan
ce,
elec
tric
pow
er, h
ealth
car
e,
and
polic
e pr
otec
tion
to
join
t pur
chas
ing
of in
stru
c-tio
nal a
nd r
esea
rch
equi
p-
men
t and
sup
plie
s sh
ould
be e
ncou
rage
d.
4. I
nfra
stru
ctur
e. F
ree-
stan
d-
ing,
sep
arat
e ph
ysic
alpl
ants
and,
if th
ey a
repu
blic
inst
itutio
ns, t
hesy
stem
adm
inis
trat
ions
that
gove
rn th
emar
e cu
rren
tlyan
unq
uest
ione
d re
quir
e-m
ent.
In th
e co
min
g cy
ber-
spac
e ag
e, p
hysi
cal s
pace
will
assu
me
less
impo
rtan
ce.
Com
bini
ng a
ll or
par
ts o
f
phys
ical
pla
nts
of, s
ay, s
tate
unde
rgra
duat
e un
iver
sitie
s
and
com
mun
ity c
olle
ges
that
serv
e th
e sa
me
geog
raph
ical
area
cou
ld s
ave
cons
ider
able
reso
urce
s.
5. L
ibra
ries
. Sub
stan
tial s
av-
ings
and
impr
oved
libr
ary
serv
ices
can
be
obta
ined
by
focu
sing
on
the
soft
war
e
need
ed to
pla
ce li
brar
yre
sour
ces
on th
e In
tern
et
rath
er th
an c
ontin
uing
to
supp
ort i
ndiv
idua
l res
earc
h
libra
ry c
olle
ctio
ns.
Rec
omm
enda
tion
5:
It is
tim
e to
red
efin
e th
e ap
prop
ri-
ate
leve
l of
educ
atio
n fo
r al
l
Am
eric
an w
orke
rs in
the
21st
cen
-
tury
. All
citiz
ens
plan
ning
to
ente
r th
e w
orkf
orce
sho
uld
be
enco
urag
ed to
pur
suea
s a
min
i-
mum
som
e fo
rm o
f po
st-
seco
ndar
y ed
ucat
ion
or tr
aini
ng.
Alm
ost a
cen
tury
ago,
Am
eric
ans
esta
blis
hed
a hi
gh
scho
ol e
duca
tion
as th
e ba
sic
educ
atio
nal r
equi
rem
ent f
or a
llci
tizen
s. A
t tha
t tim
e, th
e te
le-
grap
h w
as th
e he
ight
of
com
mu-
nica
tions
tech
nolo
gy a
nd th
e
tele
phon
e w
as o
n th
e ho
rizo
nbu
t far
fro
m a
n ev
eryd
ay in
stru
-
men
t. E
ngin
eers
and
sci
entis
ts
look
ed to
thei
r sl
ide
rule
as
the
best
inst
rum
ent f
or a
dvan
ced
calc
ulat
ions
. Tod
ay, c
ompu
ters
,th
e In
tern
et, a
nd a
hos
t of
adva
nced
tech
nolo
gies
are
ever
y-da
y w
ork
tool
s. C
lear
ly, i
t is
time
to r
ecog
nize
that
the
requ
ired
edu
catio
nal l
evel
of
a
cent
ury
ago
is n
o lo
nger
ade
-qu
ate
for
prep
arin
g th
e m
oder
nw
orkf
orce
.
Inst
ead
of r
etai
ning
the
trad
i-
tiona
l sha
rp d
istin
ctio
n be
twee
n
the
bach
elor
's d
egre
e an
d al
l
othe
r no
ndeg
ree
cate
gori
es, w
efi
nd it
pre
fera
ble
to th
ink
in
term
s of
a c
ontin
uum
of
lear
n-
ing
activ
ities
app
ropr
iate
for
atta
inin
g sp
ecif
ic g
oals
. In
the
futu
re, t
he f
ocus
sho
uld
be o
nth
e at
tain
men
t of
mor
e sp
ecif
ic,
mea
sura
ble
know
ledg
e se
ts,
rath
er th
an o
n si
mpl
e at
tain
men
tof
a b
ache
lor's
deg
ree.
It is
tim
eto
enc
oura
ge th
e ri
ch r
ange
of
subb
acca
laur
eate
opp
ortu
nitie
sth
at c
an p
rovi
de m
illio
ns o
f ci
ti-
zens
with
the
tool
s ne
eded
to
surv
ive
in th
e em
ergi
ng h
igh-
skill
eco
nom
y.
Sup
port
ing
Doc
umen
ts
Ben
jam
in, R
oger
, and
Ste
phen
J.
Car
roll,
A F
ram
ewor
k fo
r L
inki
ng
Res
ourc
es to
Mis
sion
in H
ighe
r
Edu
catio
n, D
RU
-162
3-IE
T,
Sant
a M
onic
a, C
alif
.: R
AN
D,
Janu
ary
1997
.
Ben
jam
in, R
oger
, and
Ste
phen
J.
Car
roll,
"Im
pedi
men
ts a
nd
Impe
rativ
es in
Res
truc
turi
ng
Hig
her
Edu
catio
n,"
Edu
catio
nA
dmin
istr
atio
n Q
uart
erly
, Vol
.
XX
XII
, Sup
plem
enta
l,
Dec
embe
r 19
96, p
p. 7
05-7
19.
Car
roll,
Ste
phen
, and
Eug
ene
Bry
ton,
Hig
her
Edu
catio
n's
Fisc
al
Futu
re, D
RU
-160
1-IE
T, S
anta
Mon
ica,
Cal
if.:
RA
ND
,
Febr
uary
199
7.
Elm
s, D
ebbi
e, P
relim
inar
y L
ist:
Hig
her
Edu
catio
n In
dica
tors
Res
ourc
es A
vaila
ble,
DR
U-1
597-
IET
, San
ta M
onic
a, C
alif
.:
RA
ND
, Feb
ruar
y 19
97.
Gat
es, S
usan
, and
Ann
Sto
ne,
Und
erst
andi
ng P
rodu
ctiv
ity in
Hig
her
Edu
catio
n, D
RU
-159
6-
1ET
, San
ta M
onic
a, C
alif
.:
RA
ND
, Feb
ruar
y 19
97.
Gue
ss, G
retc
hen,
and
Ste
phen
Car
roll,
Pat
tern
s in
Fed
eral
Supp
ort f
or R
6-D
: 197
3-19
94,
DR
U-1
598-
IET
, San
ta M
onic
a,
Cal
if.:
RA
ND
, Feb
ruar
y 19
97.
McA
rthu
r, D
avid
, and
Mat
thew
Lew
is, U
ntan
glin
g th
e W
eb:
App
licat
ions
of
the
Inte
rnet
and
Oth
er I
nfor
mat
ion
Tec
hnol
ogie
s to
Hig
her
Edu
catio
n, D
RU
-140
1-
IET
, San
ta M
onic
a, C
alif
.:
RA
ND
, Jan
uary
199
7.
Way
-Sm
ith, S
usan
, Inf
orm
atio
n
and
Res
ourc
e Sy
stem
s fo
r H
ighe
r
Edu
catio
n: A
Bri
efin
g,
DR
U -
1599
-IE
T, S
anta
Mon
ica,
Cal
if.:
RA
ND
, Feb
ruar
y 19
97.
97
Abo
ut th
e C
ounc
il fo
r A
id to
fclu
catio
n
The
Cou
ncil
for
Aid
to E
duca
tion
is a
nat
iona
l non
prof
it or
gani
zatio
n.It
s m
issi
on is
to e
nhan
ce th
e ef
fect
iven
ess
of c
orpo
rate
and
oth
er p
riva
te
sect
or s
uppo
rt in
impr
ovin
g ed
ucat
ion
at a
ll le
vels
and
to h
elp
educ
atio
n
inst
itutio
ns m
ore
effe
ctiv
ely
acqu
ire
priv
ate
supp
ort f
or th
eir
prog
ram
s.
CA
E c
arri
es o
ut it
s m
issi
on in
thre
e w
ays:
It p
rovi
des
corp
orat
ions
with
adv
ice
and
assi
stan
ce in
iden
tifyi
ng
and
deve
lopi
ng e
ffec
tive
natio
nal,
regi
onal
, and
loca
l pro
gram
s of
educ
atio
n su
ppor
t;
It c
olle
cts,
inte
rpre
ts, a
nd d
isse
min
ates
dat
a on
edu
catio
nal p
hil-
anth
ropy
for
the
fund
ing
com
mun
ity, f
or e
duca
tors
and
edu
catio
n
polic
ymak
ers,
and
for
gov
ernm
ent d
ecis
ion
mak
ers;
It o
ffer
s an
alys
is a
nd c
omm
enta
ry o
n ke
y as
pect
s of
edu
catio
n
polic
y an
d pr
actic
e.
CA
E a
ctiv
ities
are
sup
port
ed b
y gr
ants
and
don
atio
ns f
rom
cor
pora
tions
and
priv
ate
foun
datio
ns a
nd b
y th
e sa
le o
f pu
blic
atio
ns a
nd s
ervi
ces.
The
Cou
ncil
diss
emin
ates
its
wor
k w
idel
y to
cor
pora
tions
, the
edu
catio
n
com
mun
ity, t
he m
edia
, and
the
gene
ral p
ublic
.
CA
E is
an
inde
pend
ent s
ubsi
diar
y of
RA
ND
, a n
onpr
ofit
inst
itutio
n
that
see
ks to
impr
ove
publ
ic p
olic
y th
roug
h re
sear
ch a
nd a
naly
sis.
28B
ES
T C
OP
Y A
VA
ILA
BLE
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