Bacon's Rebellion

Democracy Thrives in Sunlight

Get Ready for the Taxpayer-Funded University Bailout

—

by

James A. Bacon
in

by Shaun Kenney

Consider for a moment how much of a college or university’s budget comes from room and board, not to mention the prosperity of the surrounding economy.

Now consider the precarious position most colleges and universities are in America, beset on all sides by administrators, federal and state regulations, and a college campus culture that imposes students upon professors who stray from the current McCarthyism.

More than any other institution in America, our college campuses and universities are struggling with how to open up on-time with students packed into dorms in the face of a pandemic.

Which means one thing and one thing only: TAXPAYER FUNDED BAILOUT.

The University of Virginia’s endowment is enormous, standing at close to $7 billion dollars in 2019. Richmond, VCU, Washington & Lee, Liberty and Virginia Tech all stand north of $1 billion, with the College of William & Mary standing just under that $1 billion threshold.

Other institutions such as the University of Mary Washington? A paltry $50 million. Radford? $56 million. Longwood? $70 million. George Mason — one of the largest universities in Virginia — stands at $84 million. Mary Baldwin University? Just $33 million.

To put this in some perspective, Mary Washington’s annual budget is $129 million. Radford? $219 million. Longwood? Also $129 million. George Mason’s annual budget is a staggering $1.8 billion annually. Mary Baldwin (insofar as one can tell) stands at about $34 million annually.

Now those sound like small schools. So let’s add a bit of weight to it, shall we?

James Madison University? Has an endowment of $103 million and an operating budget of $341 million.

George Mason University? Has an endowment of $84 million and an operating budget of $1.8 billion (that’s with a -b, folks).

Old Dominion University? Has an endowment of $244 million and an operating budget of $530 million.

In short, Virginia’s colleges and universities — should they not open their dorms for the 2020-2021 academic year — are going to find themselves in more than just a pinch, but under serious threat.

Now, one could undertake the somewhat time-consuming exercise of adding up all of the room and board costs for one year and assuming that this might be the grand number that it will take to “bailout” our colleges and universities.

But the rough math doesn’t stop there.

Students who objectively look to go to institutions specifically for the social life and interactions (professors, students, clubs, etc.) might not be terribly chagrined to pay full freight for online classes.

After all, why pay UVA or William & Mary prices for Liberty University online experiences?

So admissions may very well drop off as students either defer or decline to attend university this year. All of this barely impacts the administrators who are federally funded, but the professors and actual educators who are not federally funded and entirely reliant upon tuition and fees.

Of course, colleges and universities can dip into their endowments… for at time. But as they slowly reopen (either in the Fall 2020 semester or in the Spring 2021 semester) one can imagine a nightmare scenario of lobbyists and lawyers beating down the doors of a Democratic-controlled General Assembly demanding their pound of flesh.

Meanwhile, what is to stop any student group from forming their own “autonomous zone” on every college campus in Virginia much less America?

Surely this is the warning coming from state and federal law enforcement now — that what you are seeing at present is set to become a permanent feature depending upon the November elections.

Coupled with demands for a bailout, one can see that this is no tempest in a teacup, but rather a deeply serious problem with an institution that has tremendous political clout.

Virginia’s colleges and universities are about to endure a one-two hammer shot that the public trust might not be able to absorb — and it’s something we need to start talking about and taking seriously today.

Shaun Kenney is the editor of The Republican Standard, former chairman of the Board of Supervisors for Fluvanna County, and a former executive director of the Republican Party of Virginia. This column was published originally by The Republican Standard.

Share this article

ADVERTISEMENT

(comments below)

ADVERTISEMENT

(comments below)

Comments

54 responses to “Get Ready for the Taxpayer-Funded University Bailout”

  1. LarrytheG Avatar
    LarrytheG

    Excellent article! And not one overt word about those conniving leftists!

    If the bailouts are coming from the Feds who have a bottomless barrel of deficit debt – maybe – but I just don’t know how much Virginia will be able to do and still balance their budget.

    And my bet is that even with the Dems in control in the GA – you’re not going to get blood out of that proverbial stone.

    I think we’re going to see significant realignments of higher ed and those with the huge endowments are going to weather it better than the smaller, weaker ones, some of which are going to go under – and when they do – that actually will be to the benefit of the ones that remain…

    sorta like two burger joints and not enough business for both – then one goes down and all is well again.

  2. Lawrence Hincker Avatar
    Lawrence Hincker

    Huh? What is this author referring to? He says:

    “All of this barely impacts the administrators who are federally funded, but the professors and actual educators who are not federally funded and entirely reliant upon tuition and fees.” State universities are state funded by a combination of state General Fund revenues and tuition and fees. Dorms and dining halls are totally funded by user fees. Having been a Virginia Tech university administrator, I’m not aware of any administrators funded by federal dollars (other than the unique Virginia Cooperative Extension service, which is funded by state and federal funds.)

    State universities are now heavily dependent upon tuition – from instate as well as out of state students. So, if students don’t show in the fall, there might very well be a budget buster. But other than affecting research grants, federal funds, or lack thereof, will have very little impact on state universities.

  3. TBill Avatar
    TBill

    The COVID pandemic is causing a great loss of revenue, in many parts of the economy, which will probably be solved with higher future taxes.
    Bottom line, strategy for retirees, next couple years are a good time to convert your IRA to Roth IRA, and pay the lower tax rates of today. Also seniors can utilize the Virginia 529 plan to get a state tax deduction and help your grandchildren afford the future cost of college.

    I would like to see a minor fix on the Va. 529 to allow deductions taken until end of tax year (April 15) instead of calendar year. Re: IRA conversions, the state could relax full taxes on that and perhaps see higher income by encouraging the earlier withdrawal.

    Best we can do is try to be the smartest state to manage the crisis, with least bad financial impact on citizens. What are our chances?

    1. djrippert Avatar
      djrippert

      “Best we can do is try to be the smartest state to manage the crisis, with least bad financial impact on citizens. What are our chances?”

      Zero. Our chances are zero. King Ralph and Money Train Layne still won’t cop to the size of the problem. This lets them avoid layoffs of state employees under the “ostrich’s head in the sand theory” that we’re only going to see a $2B shortfall.

      Municipalities have furloughed and laid off workers. Has the state of Virginia?

      https://www.forbes.com/sites/ryanguina/2020/05/05/coronavirus-layoffs-are-impacting-safe-jobs/#60c71c4a3e17

      “In Los Angeles, the mayor has called for thousands of city employees to take 26 unpaid days of leave this year, which basically amounts to a 10% pay cut.

      Detroit, facing a $348 million budget deficit, is laying off over 200 part-time workers, cutting hours for full-time workers, freezing pay, and cutting some salaries by 5%. The city also expects additional cuts to services.

      These are just two small examples of how municipalities are dealing with the COVID-19 crisis. Experts estimate that thousands of state and local government employees will be forced into filing for unemployment benefits.”

      Free spending Maryland passed a $46.6B annual budget ahead of Coronavirus issues. Free spending Virginia passed a $135B two year budget or $67.5B per year. Maryland’s government has published multiple scenarios with COVID19 related shortfalls between $2.1B and $4B by the end of FY22. As far as I know, Virginia’s sees a $2B shortfall which is within the size of the various rainy day funds. Despite our state spending 50% more per year than Maryland we don’t have a budget problem but Maryland does. Isn’t it great to live in the best state for business?

      Northam’s plan is just a repeat of Mark Warner’s fabrication ahead of his election as governor. Declare that all is fine and then “discover” a huge shortfall requiring massive tax increases.

      While I hate to even try to be fair to Ralph Northam, I will. Much depends on the level of federal support for states. However, that doesn’t excuse the immediate belt tightening that should have occurred at the same time Virginia’s lockdown was instituted. If the belt was tightened too much then surplus funds could be used for higher than anticipated pay raises for state employees.

      1. TooManyTaxes Avatar
        TooManyTaxes

        Mark Warner’s tactics were actually complemented in a WaPo editorial years ago (back when I was a subscriber). He said he was going to fix a structural deficit. He didn’t, as some of his successors have made the same claim.

  4. Steve Haner Avatar
    Steve Haner

    https://therepublicanstandard.com/

    The last thing I see posted on the Republican Standard website is dated March 26. There is still an article I wrote in January (?). You seem to be editor of a dead outlet, Shaun. What’s the story? Another sign of RPV’s demise? (Well, yes.) Welcome to BR….

    I’m not sure how much of the revenue from housing and food and other ancillary services provides profit to benefit other aspects of a university education. Hinckler and others closer to those finances would know better. When we looked at the money at the SCHEV level, I don’t remember transfers from ancillary services being highlighted. There certainly are some bonds and other debt at risk if the rooms are empty.

  5. Nancy_Naive Avatar
    Nancy_Naive

    Wow! I’m impressed. $7B. Not bad. OTOH, prior to this epidemic, and the last I saw, UVA received a grand whopping 6% of its operating budget from the State. W&M got 10% of theirs. I doubt they’ll be getting huge bailouts, although they’ll try for them to be sure.

  6. TooManyTaxes Avatar
    TooManyTaxes

    So why can’t colleges and universities do what private business does all the time – look for efficiencies? We have 14 lawyers plus a small support staff that also serves our affiliated consulting group. We don’t have a lot of overhead; a number of people work from locations hundreds of miles away from our small office. Yet, the facilities are comfortable and practical. We look for ways to offer clients alternative fee arrangements and capitalize on our collective knowledge. The firm also compensates staff in ways that benefit both the firm and the staff member. Some are paid a salary; others of us split revenues billed and collected. There are likely tens of thousands of similar business of all types in Virginia. Why can’t our institutions of higher education focus on being effective and efficient, passing on the savings to students and employees alike?

  7. LarrytheG Avatar
    LarrytheG

    Excellent article! And not one overt word about those conniving leftists!

    If the bailouts are coming from the Feds who have a bottomless barrel of deficit debt – maybe – but I just don’t know how much Virginia will be able to do and still balance their budget.

    And my bet is that even with the Dems in control in the GA – you’re not going to get blood out of that proverbial stone.

    I think we’re going to see significant realignments of higher ed and those with the huge endowments are going to weather it better than the smaller, weaker ones, some of which are going to go under – and when they do – that actually will be to the benefit of the ones that remain…

    sorta like two burger joints and not enough business for both – then one goes down and all is well again.

  8. Lawrence Hincker Avatar
    Lawrence Hincker

    Huh? What is this author referring to? He says:

    “All of this barely impacts the administrators who are federally funded, but the professors and actual educators who are not federally funded and entirely reliant upon tuition and fees.” State universities are state funded by a combination of state General Fund revenues and tuition and fees. Dorms and dining halls are totally funded by user fees. Having been a Virginia Tech university administrator, I’m not aware of any administrators funded by federal dollars (other than the unique Virginia Cooperative Extension service, which is funded by state and federal funds.)

    State universities are now heavily dependent upon tuition – from instate as well as out of state students. So, if students don’t show in the fall, there might very well be a budget buster. But other than affecting research grants, federal funds, or lack thereof, will have very little impact on state universities.

  9. TBill Avatar
    TBill

    The COVID pandemic is causing a great loss of revenue, in many parts of the economy, which will probably be solved with higher future taxes.
    Bottom line, strategy for retirees, next couple years are a good time to convert your IRA to Roth IRA, and pay the lower tax rates of today. Also seniors can utilize the Virginia 529 plan to get a state tax deduction and help your grandchildren afford the future cost of college.

    I would like to see a minor fix on the Va. 529 to allow deductions taken until end of tax year (April 15) instead of calendar year. Re: IRA conversions, the state could relax full taxes on that and perhaps see higher income by encouraging the earlier withdrawal.

    Best we can do is try to be the smartest state to manage the crisis, with least bad financial impact on citizens. What are our chances?

    1. djrippert Avatar
      djrippert

      “Best we can do is try to be the smartest state to manage the crisis, with least bad financial impact on citizens. What are our chances?”

      Zero. Our chances are zero. King Ralph and Money Train Layne still won’t cop to the size of the problem. This lets them avoid layoffs of state employees under the “ostrich’s head in the sand theory” that we’re only going to see a $2B shortfall.

      Municipalities have furloughed and laid off workers. Has the state of Virginia?

      https://www.forbes.com/sites/ryanguina/2020/05/05/coronavirus-layoffs-are-impacting-safe-jobs/#60c71c4a3e17

      “In Los Angeles, the mayor has called for thousands of city employees to take 26 unpaid days of leave this year, which basically amounts to a 10% pay cut.

      Detroit, facing a $348 million budget deficit, is laying off over 200 part-time workers, cutting hours for full-time workers, freezing pay, and cutting some salaries by 5%. The city also expects additional cuts to services.

      These are just two small examples of how municipalities are dealing with the COVID-19 crisis. Experts estimate that thousands of state and local government employees will be forced into filing for unemployment benefits.”

      Free spending Maryland passed a $46.6B annual budget ahead of Coronavirus issues. Free spending Virginia passed a $135B two year budget or $67.5B per year. Maryland’s government has published multiple scenarios with COVID19 related shortfalls between $2.1B and $4B by the end of FY22. As far as I know, Virginia’s sees a $2B shortfall which is within the size of the various rainy day funds. Despite our state spending 50% more per year than Maryland we don’t have a budget problem but Maryland does. Isn’t it great to live in the best state for business?

      Northam’s plan is just a repeat of Mark Warner’s fabrication ahead of his election as governor. Declare that all is fine and then “discover” a huge shortfall requiring massive tax increases.

      While I hate to even try to be fair to Ralph Northam, I will. Much depends on the level of federal support for states. However, that doesn’t excuse the immediate belt tightening that should have occurred at the same time Virginia’s lockdown was instituted. If the belt was tightened too much then surplus funds could be used for higher than anticipated pay raises for state employees.

      1. TooManyTaxes Avatar
        TooManyTaxes

        Mark Warner’s tactics were actually complemented in a WaPo editorial years ago (back when I was a subscriber). He said he was going to fix a structural deficit. He didn’t, as some of his successors have made the same claim.

  10. Steve Haner Avatar
    Steve Haner

    https://therepublicanstandard.com/

    The last thing I see posted on the Republican Standard website is dated March 26. There is still an article I wrote in January (?). You seem to be editor of a dead outlet, Shaun. What’s the story? Another sign of RPV’s demise? (Well, yes.) Welcome to BR….

    I’m not sure how much of the revenue from housing and food and other ancillary services provides profit to benefit other aspects of a university education. Hinckler and others closer to those finances would know better. When we looked at the money at the SCHEV level, I don’t remember transfers from ancillary services being highlighted. There certainly are some bonds and other debt at risk if the rooms are empty.

  11. djrippert Avatar
    djrippert

    Tax the endowments on a graduated scale. If King Ralph can suspend wide swaths of the US and state constitutions for a lockdown and then ignore his own proclamations for protesters we have a dictatorship anyway. The leftists at UVA believe in income redistribution. Time to practice what they preach with regard to endowments.

    “The University of Virginia’s endowment is enormous, standing at close to $7 billion dollars in 2019. Richmond, VCU, Washington & Lee, Liberty and Virginia Tech all stand north of $1 billion, with the College of William & Mary standing just under that $1 billion threshold.”

    Is William & Mary so poorly endowed because they’ve had to refund a lot of graduates’ tuition after they realize the true value of a W&M education? Just kidding, Steve … I couldn’t resist.

    1. Steve Haner Avatar
      Steve Haner

      Har har. Mainly it’s the lack of significant graduate programs, other than the highly rated law school. No medical school, unlike VCU and UVA and now Tech. The W&M graduate business programs only recently took off. They also were the first to admit women, 1918. I’ll stop there….

    2. Nancy_Naive Avatar
      Nancy_Naive

      Nonetheless, W&M sounds better than UMUC… Do you suppose they could have wedged the word “academy” in there someplace?

      (and yes, all universities have a “college”)

      Steve, if it weren’t for that Harvard graduate W&M had for a president in the late 1800s who capitulated and gave his school the title, maybe we would be the oldest.

      1. djrippert Avatar
        djrippert

        It’s not UMUC that haunts the dreams of us UVA grads, it’s UMBC. However, that ghost has been excised from our collective consciousness. Heading into late 2020 and UVA … still the champs!

        1. Nancy_Naive Avatar
          Nancy_Naive

          Sniff, sniff… ugh, UVa. Shoulda known.

  12. djrippert Avatar
    djrippert

    Tax the endowments on a graduated scale. If King Ralph can suspend wide swaths of the US and state constitutions for a lockdown and then ignore his own proclamations for protesters we have a dictatorship anyway. The leftists at UVA believe in income redistribution. Time to practice what they preach with regard to endowments.

    “The University of Virginia’s endowment is enormous, standing at close to $7 billion dollars in 2019. Richmond, VCU, Washington & Lee, Liberty and Virginia Tech all stand north of $1 billion, with the College of William & Mary standing just under that $1 billion threshold.”

    Is William & Mary so poorly endowed because they’ve had to refund a lot of graduates’ tuition after they realize the true value of a W&M education? Just kidding, Steve … I couldn’t resist.

    1. Steve Haner Avatar
      Steve Haner

      Har har. Mainly it’s the lack of significant graduate programs, other than the highly rated law school. No medical school, unlike VCU and UVA and now Tech. The W&M graduate business programs only recently took off. They also were the first to admit women, 1918. I’ll stop there….

    2. Nancy_Naive Avatar
      Nancy_Naive

      Nonetheless, W&M sounds better than UMUC… Do you suppose they could have wedged the word “academy” in there someplace?

      (and yes, all universities have a “college”)

      Steve, if it weren’t for that Harvard graduate W&M had for a president in the late 1800s who capitulated and gave his school the title, maybe we would be the oldest.

      1. djrippert Avatar
        djrippert

        It’s not UMUC that haunts the dreams of us UVA grads, it’s UMBC. However, that ghost has been excised from our collective consciousness. Heading into late 2020 and UVA … still the champs!

        1. Nancy_Naive Avatar
          Nancy_Naive

          Sniff, sniff… ugh, UVa. Shoulda known.

  13. Nancy_Naive Avatar
    Nancy_Naive

    Wow! I’m impressed. $7B. Not bad. OTOH, prior to this epidemic, and the last I saw, UVA received a grand whopping 6% of its operating budget from the State. W&M got 10% of theirs. I doubt they’ll be getting huge bailouts, although they’ll try for them to be sure.

  14. TooManyTaxes Avatar
    TooManyTaxes

    So why can’t colleges and universities do what private business does all the time – look for efficiencies? We have 14 lawyers plus a small support staff that also serves our affiliated consulting group. We don’t have a lot of overhead; a number of people work from locations hundreds of miles away from our small office. Yet, the facilities are comfortable and practical. We look for ways to offer clients alternative fee arrangements and capitalize on our collective knowledge. The firm also compensates staff in ways that benefit both the firm and the staff member. Some are paid a salary; others of us split revenues billed and collected. There are likely tens of thousands of similar business of all types in Virginia. Why can’t our institutions of higher education focus on being effective and efficient, passing on the savings to students and employees alike?

  15. CrazyJD Avatar
    CrazyJD

    >>Having been a Virginia Tech university administrator, I’m not aware of any administrators funded by federal dollars (other than the unique Virginia Cooperative Extension service, which is funded by state and federal funds.)

    But Lawrence, aren’t the federal funds fungible? They may not be earmarked for administrators, or set up in the budget that way, but don’t the funds earmarked for, say, professors, allow the university to use other non-federal funds for administrators that might otherwise have gone to professors? I suspect that for some kinds of funding, say, research, there may be separate accounts set up for direct deposit from the feds. But I’m really just commenting on the fungibility of money. If there is an “anti-fungibility” mechanism, let me know. Money is surely fungible when it comes to the fraud that is the state government lottery and the “earmark” to education. Just makes one suspicious.

    1. Nancy_Naive Avatar
      Nancy_Naive

      Once the money hits the bucket, its color does wash out. Faculty and staff at state schools collect state paychecks, so I’m guessing there’s no fed money there. Any kind of merit/bonus might. The only President I knew also collected a state paycheck, plus a % of contributions received by the endowment, etc, etc.

      Now, the NCAA? Yeah, their money is laundered through the school.

  16. CrazyJD Avatar
    CrazyJD

    >>Having been a Virginia Tech university administrator, I’m not aware of any administrators funded by federal dollars (other than the unique Virginia Cooperative Extension service, which is funded by state and federal funds.)

    But Lawrence, aren’t the federal funds fungible? They may not be earmarked for administrators, or set up in the budget that way, but don’t the funds earmarked for, say, professors, allow the university to use other non-federal funds for administrators that might otherwise have gone to professors? I suspect that for some kinds of funding, say, research, there may be separate accounts set up for direct deposit from the feds. But I’m really just commenting on the fungibility of money. If there is an “anti-fungibility” mechanism, let me know. Money is surely fungible when it comes to the fraud that is the state government lottery and the “earmark” to education. Just makes one suspicious.

    1. Nancy_Naive Avatar
      Nancy_Naive

      Once the money hits the bucket, its color does wash out. Faculty and staff at state schools collect state paychecks, so I’m guessing there’s no fed money there. Any kind of merit/bonus might. The only President I knew also collected a state paycheck, plus a % of contributions received by the endowment, etc, etc.

      Now, the NCAA? Yeah, their money is laundered through the school.

  17. James A. Bacon Avatar
    James A. Bacon

    Shaun’s post refers to the impact of COVID-19 on unversity budgets for room and board. I’d like to expand on that.

    Virginia higher-ed institutions have borrowed heavily to build new dormitories for several reasons: (1) to accommodate expanded enrollment, (2) to upgrade dormitories in order to attract students, and in the case of commuter campuses turned residential campuses (3) to rebrand themselves in the never-ending quest for greater prestige.

    Dormitories are meant to be self-financing. Bond payments come from dormitory rents. If the dormitories aren’t filled, universities could find themselves in a precarious position. I suspect that dormitory bond issues provide reserves to handle short-term cash flow problems. Once those are tapped, then the universities face the decision whether to fund the payments out of their general revenues (mainly from tuition supplemented by state aid) or to default on the bonds.

    I have been warning for a long time of the possibility that some Virginia universities were over-leveraged and called for the Commonwealth to conduct a risk analysis. Never happened. Depending on what happens to fall enrollments, we could soon wish we had conducted that analysis.

  18. James A. Bacon Avatar
    James A. Bacon

    Shaun’s post refers to the impact of COVID-19 on unversity budgets for room and board. I’d like to expand on that.

    Virginia higher-ed institutions have borrowed heavily to build new dormitories for several reasons: (1) to accommodate expanded enrollment, (2) to upgrade dormitories in order to attract students, and in the case of commuter campuses turned residential campuses (3) to rebrand themselves in the never-ending quest for greater prestige.

    Dormitories are meant to be self-financing. Bond payments come from dormitory rents. If the dormitories aren’t filled, universities could find themselves in a precarious position. I suspect that dormitory bond issues provide reserves to handle short-term cash flow problems. Once those are tapped, then the universities face the decision whether to fund the payments out of their general revenues (mainly from tuition supplemented by state aid) or to default on the bonds.

    I have been warning for a long time of the possibility that some Virginia universities were over-leveraged and called for the Commonwealth to conduct a risk analysis. Never happened. Depending on what happens to fall enrollments, we could soon wish we had conducted that analysis.

  19. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    This whole post was a rambling exercise. I kept saying to myself, “What is his point?’ Jim, you have singled out one area that will be worrisome if students don’t show up. Those bonds issued to finance residence facilities and student services, such as dining halls, are revenue bonds; the debt service is to be paid out of the revenue generated by the facilities. In most cases, there is no guarantee of the state’s full faith and credit. If the revenues are not sufficient to pay the debt service, then, legally, the bondholders are out of luck. If it comes to that, I would expect the state government to step with financial assistance (bailout, if you want to use that word), rather than let a college or university default on its bonds.

    1. TooManyTaxes Avatar
      TooManyTaxes

      How many colleges & universities do we need in the state? As Larry has often suggested, we might be better off shifting significant resources to community colleges and tech schools. We need to see some administrative layoffs in higher education and force full professors to carry they same workloads their professors carried.

    2. Tom Banford Avatar
      Tom Banford

      Agree, a rambling exercise injected with political missives that detract from any real point to be made. Perhaps some insight into the current state of the Republican Standard website.

  20. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    This whole post was a rambling exercise. I kept saying to myself, “What is his point?’ Jim, you have singled out one area that will be worrisome if students don’t show up. Those bonds issued to finance residence facilities and student services, such as dining halls, are revenue bonds; the debt service is to be paid out of the revenue generated by the facilities. In most cases, there is no guarantee of the state’s full faith and credit. If the revenues are not sufficient to pay the debt service, then, legally, the bondholders are out of luck. If it comes to that, I would expect the state government to step with financial assistance (bailout, if you want to use that word), rather than let a college or university default on its bonds.

    1. TooManyTaxes Avatar
      TooManyTaxes

      How many colleges & universities do we need in the state? As Larry has often suggested, we might be better off shifting significant resources to community colleges and tech schools. We need to see some administrative layoffs in higher education and force full professors to carry they same workloads their professors carried.

    2. Tom Banford Avatar
      Tom Banford

      Agree, a rambling exercise injected with political missives that detract from any real point to be made. Perhaps some insight into the current state of the Republican Standard website.

  21. James Wyatt Whitehead V Avatar
    James Wyatt Whitehead V

    No bailouts for colleges. If they can’t swim they need to get out of the pool. Private businesses and institutions already know this. The bowling alley and movie theater in Front Royal are taking it on the chin. So should everybody else.
    https://dailycaller.com/2020/05/20/coronavirus-front-royal-virginia-ralph-northam-movie-theater-bowling/

  22. LarrytheG Avatar
    LarrytheG

    Here’s a thought. If Higher Ed ends up with excess dorms they don’t need and can’t pay for.. then let the state use them for all those folks the private property folks want to evict.

  23. LarrytheG Avatar
    LarrytheG

    Here’s a thought. If Higher Ed ends up with excess dorms they don’t need and can’t pay for.. then let the state use them for all those folks the private property folks want to evict.

  24. Bosun Avatar
    Bosun

    Last time I checked, Richmond, Washington & Lee, Liberty, and Mary Baldwin were private institutions. Shouldn’t we bail them out just like the private businesses that the current administration is bailing out? Fair is fair. Bosun

  25. Bosun Avatar
    Bosun

    Last time I checked, Richmond, Washington & Lee, Liberty, and Mary Baldwin were private institutions. Shouldn’t we bail them out just like the private businesses that the current administration is bailing out? Fair is fair. Bosun

  26. MatthewN Avatar
    MatthewN

    Enough with the bailouts. The college model is failing – declining enrollment, high tuition, dubious value, bloated costs,etc. That does not even include the culture of repression, lack of free speech,etc. We should not throw money at the broken model. The National Association of Scholars has an excellent report (April 2020) summarizing key recommendations in order to qualify for funds. These include cutting administrative costs, guaranteeing free speech on campus, improving quailty etc. Schools should be required to make REAL changes. I do not want to see federal funds propping up administrators, facilities, and money losing sports programs. We should also allow non-viable Institutions to simply go out of business. These institutions are poorly managed and lack any market discipline, I say no money without serious changes to the model. Also, no funds until they blow through their endowments.

    1. LarrytheG Avatar
      LarrytheG

      I agree. What chance was had for a “market” in higher Ed was pretty much wiped out with the ubiquitous availability of student “aid” which
      keeps the money flowing to the institutions and puts the student in debt for a decade or longer.

      Any way you cut it, College is a high-dollar product these days and yes – you can pay a lot and get a little if you are dumb enough just like with any product.

      What’s funny, is the idea that we’d FORCE govt to make Higher Ed “behave”… lord lord…. coming from many who say govt is failed and incompetent… but they gonna “fix” higher ed… 😉

      1. James A. Bacon Avatar
        James A. Bacon

        What’s funny, is the idea that we’d FORCE govt to make Higher Ed “behave. … coming from many who say govt is failed and incompetent… but they gonna “fix” higher ed…

        Who says this? No one. You’re hallucinating again. Adding a smiley face doesn’t make it any better! 😉

        1. LarrytheG Avatar
          LarrytheG

          WHO? let me count the commentors… it’s the major theme in the comments!

          like – tax the endowments

          or force “efficiencies”

          or force more disclosure of finances…

          etc, etc, etc..

  27. MatthewN Avatar
    MatthewN

    Enough with the bailouts. The college model is failing – declining enrollment, high tuition, dubious value, bloated costs,etc. That does not even include the culture of repression, lack of free speech,etc. We should not throw money at the broken model. The National Association of Scholars has an excellent report (April 2020) summarizing key recommendations in order to qualify for funds. These include cutting administrative costs, guaranteeing free speech on campus, improving quailty etc. Schools should be required to make REAL changes. I do not want to see federal funds propping up administrators, facilities, and money losing sports programs. We should also allow non-viable Institutions to simply go out of business. These institutions are poorly managed and lack any market discipline, I say no money without serious changes to the model. Also, no funds until they blow through their endowments.

    1. LarrytheG Avatar
      LarrytheG

      I agree. What chance was had for a “market” in higher Ed was pretty much wiped out with the ubiquitous availability of student “aid” which
      keeps the money flowing to the institutions and puts the student in debt for a decade or longer.

      Any way you cut it, College is a high-dollar product these days and yes – you can pay a lot and get a little if you are dumb enough just like with any product.

      What’s funny, is the idea that we’d FORCE govt to make Higher Ed “behave”… lord lord…. coming from many who say govt is failed and incompetent… but they gonna “fix” higher ed… 😉

      1. James A. Bacon Avatar
        James A. Bacon

        What’s funny, is the idea that we’d FORCE govt to make Higher Ed “behave. … coming from many who say govt is failed and incompetent… but they gonna “fix” higher ed…

        Who says this? No one. You’re hallucinating again. Adding a smiley face doesn’t make it any better! 😉

  28. James Wyatt Whitehead V Avatar
    James Wyatt Whitehead V

    No bailouts for colleges. If they can’t swim they need to get out of the pool. Private businesses and institutions already know this. The bowling alley and movie theater in Front Royal are taking it on the chin. So should everybody else.
    https://dailycaller.com/2020/05/20/coronavirus-front-royal-virginia-ralph-northam-movie-theater-bowling/

  29. WayneS Avatar
    WayneS

    “Students who objectively look to go to institutions specifically for the social life and interactions (professors, students, clubs, etc.) might not be terribly chagrined to pay full freight for online classes.”

    They might NOT be chagrined? On the contrary, I think they might be quite vexed indeed by the idea of paying full-freight for half a load.

  30. WayneS Avatar
    WayneS

    “Students who objectively look to go to institutions specifically for the social life and interactions (professors, students, clubs, etc.) might not be terribly chagrined to pay full freight for online classes.”

    They might NOT be chagrined? On the contrary, I think they might be quite vexed indeed by the idea of paying full-freight for half a load.

  31. Netflix CEO Reed Hastings donates $120 million to support historically Black colleges and universities; Texas A&M System Dedicates $100 Million to “Diversity Issues” Scholarship Fund, AND MORE NEWS Copy | HigherEdFundraising

    […] Get Ready for the Taxpayer-Funded University Bailout Bacon’s Rebellion (6/18/20) Consider for a moment how much of a college or university’s budget comes from room and board, not to mention the prosperity of the surrounding economy. Read more… […]

Leave a Reply

Read More