Is Virginia’s Higher-Ed System “Inequitable”?

Source: “Higher Education School Finance Inequity and Inadequacy in Virginia”

by James A. Bacon

State appropriations per student to Virginia’s four-year colleges and universities vary widely, ranging from $14,121 in FY 2019 for the University of Virginia’s College at Wise to $4,460 at George Mason University, according to a recent report, “Higher Education School Finance Inequity and Inadequacy in Virginia.”

Not only is state funding per full-time student lower than in most other states, argues the report, published by left-leaning Education Reform Now (ERN), state support does not appear to be linked to need, access, affordability, or success.

ERN’s social-justice critique of Virginia’s higher-ed system contends that state funding short-changes lower-income and minority students. Some points it makes are valid. Some are tendentious.

Yes, it is true that in fiscal 2019 Virginia provided less funding per student than all but 14 other states. Yes, it is true that inflation-adjusted state support per student was lower than it was in 2009. Yes, it is true that community colleges, which disproportionately enroll minorities, received less per-student support than four-year colleges. Yes, it is true that in-state students were burdened with ever-bigger loans upon graduation, that indebtedness varied widely by institution, and that lower-income students borrowed more on average. 

ERN argues that it’s not enough to recruit a more racially diverse pool of applicants, which Virginia’s higher-ed system has done. It’s not even enough to make funding “equal” for lower-income and minority students, meaning that individuals of all races receive the same level of state support on average. ERN says Virginia should make its funding “equitable,” meaning that funding should be allocated in such a way as to favor lower-income and minority students. In effect, in ERN’s eyes, the greatest flaw of Virginia’s higher-ed system is that it does not function sufficiently as an engine of wealth redistribution and social mobility for the poor.

The report cherry picks data to exaggerate the extent to which the system is inequitable. For example, the report emphasizes the large debt load carried by graduates of Virginia’s two Historically Black Colleges and Universities (HBCUs), Norfolk State and Virginia State. A quarter of their graduates owed more than $54,000 in 2018. In that discussion, the authors overlooked the data found elsewhere in the report that NSU received the second-largest appropriation per capita ($12,385) of any four-year institution, and VSU received the third largest ($11,818). The only institution receiving more was UVa’s college at Wise ($14,121), which serves the state’s poorest region, far Southwest Virginia in Appalachia. HBCU students graduate with high debt loads not because they are Black or because the state short-changes their schools’ funding but because (1) HBCU students are far more likely to come from poor families and (2) HBCUs lack the market power to jack up tuition for wealthier students in order to lower tuition for others.

In point of fact, Virginia’s system is “equitable,” if by equitable we mean financially favoring lower-income students. It just isn’t equitable enough to suit ERN.

The report notes that the College of William & Mary, one of Virginia’s academically elite institutions, heavily discounts tuition and fees for students from lower-income and working-class families — charging only $4,711 compared to $11,060 for the full sticker-price paid by more affluent families. But the authors then write, “One should not rush to applaud William & Mary, however, on affordability for low-income students.” W&M, it seems, admits “too few” low-income students.

It is true the W&M admits only a small percentage of lower-income students with high financial needs. But that doesn’t change the fact that lower-income students pay less, and that their tuition is subsidized by families that pay the full freight.

Nowhere does ERN present evidence that W&M (and UVa and Christopher Newport University, which it also criticizes) discriminate against lower-income and/or minority students. The reality is that W&M and UVa (I don’t know about CNU) aggressively recruit minority students. Indeed, there is considerable evidence that their admissions policies favor Blacks and Hispanics.

The real sin of UVa and W&M — Virginia’s two most elite academic institutions — is that they have not lowered their standards so more lower-income/minority students can qualify to attend. The reality is that a shamefully small percentage of minority students graduating from Virginia high schools are prepared to do elite college-level work. While ERN does not explicitly say the elite institutions should lower academic standards, that would be the only way to meet its social-justice goals. 

ERN fails to grasp that UVa and W&M (and Virginia Tech, the state’s third elite university) don’t stand alone. They are part of a comprehensive system of higher-education designed to accommodate students of widely varying levels of academic preparation. The idea is to have a handful of institutions that provide a world-class education for those who are academically prepared to benefit from it, while other institutions serve less blessed segments of the higher-ed marketplace.

But the ERN report is right about one thing. The level of state support does vary widely between institutions. There’s an easy way to solve the resulting inequities. State dollars should flow directly to students, not to institutions. Empower students financially and let Virginia universities compete for their business. I suspect we’d all be amazed at how those institutions would focus on cutting costs and hewing to their core educational mission. Lower-income students would get equal financial treatment, regardless of the institution they attend. Best of all, all students — rich, poor, middle-class alike — would benefit.


Share this article



ADVERTISEMENT

(comments below)



ADVERTISEMENT

(comments below)


Comments

18 responses to “Is Virginia’s Higher-Ed System “Inequitable”?”

  1. True equity will be realized when every new-born Virginian is given both a birth certificate and a college diploma when they come into our world. Saves everyone a lot of time and money.

    1. Stephen Haner Avatar
      Stephen Haner

      And a limitless debit card…don’t forget that.

      1. sorry. my bad.
        I just can’t wait to ‘teach’ the kids coming into college in the next few years…..should be interesting when they get a ‘D’ on my first test, after coming from Fairfax County with a 4.9 GPA

  2. vicnicholls Avatar
    vicnicholls

    “HBCUs lack the market power to jack up tuition for wealthier students in order to lower tuition for others”

    Could one way to help that is to graduate more STEM-H grads rather than grads in lower earning groups?

  3. LarrytheG Avatar

    “means-testing” is not exactly unheard of in determining how much subsidy to provide. It works that way for Housing, food and health insurance, why not Higher Ed?

    and this sentence makes me wonder what “public university” means: ” The idea is to have a handful of institutions that provide a world-class education for those who are academically prepared to benefit from it, while other institutions serve less blessed segments of the higher-ed marketplace.”

    Many Universities that purport to serve the public (as opposed to private institutions explicitly for “elites”) , no long use academics alone to determine enrollment. Beyond that, many of them actually do provide “help” to insure students will succeed especially if they are capable but academically “short”.

    And how many Universities admit students regardless of academics if they play sports and “help” them as long as they can help the team?

    It all depends on what you’re trying to achieve – or not.

  4. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    Your idea sounds good in theory, but how would it be implemented? Would the money that “follows the student” be equal to a fixed tuition rate plus financial aid? Would institutions still be allowed to set tuition at varying rates? If so, then a poor student admitted to W&M would need more financial aid than one admitted to an institution with a lower tuition. If each student would “come” with a set amount, what incentive would institutions have to lower costs? Wouldn’t there be as much incentive to lower standards and thereby admit that many more students, thereby bringing in even more money? One of the reasons that W&M’s tuition and state financing per student are relatively high is that the school has resisted pressure to increase the size of its student body, while being selective in its admissions. Higher ed finance is such a maze that it makes my head hurt. I was not involved in this area when I was at DPB, but my sense is that the size of the student body was a factor in how funding was allocated among schools. (Much of the funding for various categories was pooled on a statewide basis and then allocated among the various schools. The formulas in those DPB spreadsheets are what determined who got how much.)

    Overlooked in this discussion about the cost of higher ed is the disproportionate increase in fees and room/board costs, as opposed to tuition. I have long wished that one school in the state would adopt the following message to parents: We will provide your child an outstanding education, with ready access to excellent instructors, at a cost that is substantially less than that at other schools. The housing will be clean and safe, but it will not be fancy. It may be less comfortable than your child has at home. The food will be good, well prepared, and healthful. However, there will not be the variety of choices that your child may have available at home or outside your home. There will be ample opportunity for your child to participate in various recreational activities, but our facilities do not equal those of private gyms and clubs.

    1. Your last paragraph makes me laugh — VT is placing frigs and microwaves in every room next year. To solve that problem, have the colleges make the loans to students for college costs…… like Elon Musk stated, “What does it tell you when an 18 year old can’t get a $10K small business loan, but can get a $100K college loan?”

      1. Dick Hall-Sizemore Avatar
        Dick Hall-Sizemore

        I know–it is a dream.

        1. That’s exactly how Virginia Tech was when I went there in the 1980s. They provided clean, adequate no-frills housing and [mostly] decent/good food but nothing fancy.

          They could definitely lower costs for students by returning to that philosophy.

  5. Citizen X Avatar

    So… leftists believe parents should not choose how to spend their child’s primary and secondary education dollars because education bureaucrats and administrators who designed an unequal and inequitable system are somehow more qualified to decide how to spend the money. Hmmm…

  6. Citizen X Avatar

    “The real sin of UVa and W&M — Virginia’s two most elite academic institutions — is that they have not lowered their standards so more lower-income/minority students can qualify to attend. The reality is that a shamefully small percentage of minority students graduating from Virginia high schools are prepared to do elite college-level work. While ERN does not explicitly say the elite institutions should lower academic standards, that would be the only way to meet its social-justice goals.”

    One could better meet social justice goals by allowing parents to choose how and where their child’s primary and secondary education funding is spent rather than allowing education bureaucrats and administrators, who purport to be more qualified, to determine how and where to allocate funding. Parents are more likely to choose primary and secondary schools that better prepare children for elite post-secondary education institutions than bureaucrats and administrators who are not accountable for the poor outcomes stated in the left-leaning Education Reform Now report.

    1. LarrytheG Avatar

      re: ” One could better meet social justice goals by allowing parents to choose how and where their child’s primary and secondary education funding is spent ‘

      curious how that might work – logistically – say for a county like Henrico….

      How would limited ‘slots’ be allocated when there was more demand that a given school could enroll?

      first come, first-serve each year , lottery every year?

      how does bus transportation “work”.

      How about free and reduced lunches?

      What should Youngkin propose?

      1. Citizen X Avatar

        A school with greater demand than the supply of ‘slots’ will either increase prices or raise admission standards. If the school increases prices, they can use the increased revenue to expand the capacity of ‘slots.’ More schools will open to meet unmet demand afterward because there is a business opportunity to receive the education funding attached to the child. Multiple schools within a given geographic distance will likely consolidate their bus transportation as a shared service to control costs. One can finance free and reduced lunches with the same school vouchers that pay for the ‘free and reduced price’ education the student receives.

        1. LarrytheG Avatar

          You’d favor increasing the vouchers if prices went up from demand?

          Not a lottery?

          1. Citizen X Avatar

            The quantity of vouchers is limited to the total number of students in a given geographic area. The policy should set the voucher’s monetary value to a baseline average cost for education among schools within a given geographic area. If a particular school chooses to raise tuition costs above the average value of the voucher, additional sources of funding will have to cover the difference. Additional funding sources can come from scholarships, grants, or out-of-pocket costs from parents. The additional cost to parents will result in disparities between parents who can afford the cost and those who cannot. Raising admission standards can help stave increased demand without rapidly rising tuition costs and dealing with resulting problems related to economic disparities.

          2. LarrytheG Avatar

            so the richer parents could essentially outbid the poor?

            Is the goal of this to provide a better education to those who currently cannot get one because of where they live or their income?

            ditto for admission if the parents can afford tutors ?

            how do you do a truly equitable access where your income has no bearing?

            Would you limit access by means-testing like we do for housing, EBT, health insurance?

            How about year-to-year access?

            Once the kid is enrolled, is he guaranteed to finish the future grades without requalifying such that when schools are filled – there are no more slots for years?

            Where do the kids that miss out on enrollment go to school in the meanstime?

            How would you hold these schools accountable for their performance? SOLs or what?

            Bottom Line – I’m no onboard until there are good answers to these questions and I’m probably not alone.

          3. Citizen X Avatar

            “so the richer parents could essentially outbid the poor?”

            Not sure how that is different from the status quo where wealthy parents send their children to private boarding schools.

            Means-testing to determine access or voucher amount might produce effective results in regards to equity.

            “Is the goal of this to provide a better education to those who currently cannot get one because of where they live or their income?”

            The goal is to provide a better education than whatever they are getting under the status quo.

          4. LarrytheG Avatar

            but I thought the point was to address the inequities, no?

            re: ” The goal is to provide a better education than whatever they are getting under the status quo.”

            regardless of who is already getting a better education but want even more/better while others who are not , can’t?

            It appears that the ones who are already higher income and in better schools already – can essentially outbid the less well off who are stuck in poverty neighborhood schools.

            All this sounds like is taxpayer vouchers for those who are already well off and getting better educations but the premise “equity”?

            I think there needs to be a better plan than just taxpayer vouchers for folks who are already well-off and living in higher income neighborhoods with better schools.

            How are the kids who have low-income parents living in poor neighborhoods going to get truly “equal” access also?

Leave a Reply