Quotulatiousness

May 25, 2016

QotD: Administrative bloat at American universities

Filed under: Bureaucracy, Economics, Quotations, USA — Tags: , — Nicholas @ 01:00

Some commentators blame lazy, overpaid faculty [for the rising cost of tuition]. But while faculty teaching loads are somewhat lower than they were decades ago, faculty-student ratios have been quite stable over the past several decades, while the ratio of administrators and staff to students has become much less favorable. In his book on administrative bloat, The Fall Of The Faculty, Johns Hopkins professor Benjamin Ginsberg reports that although student-faculty ratios fell slightly between 1975 and 2005, from 16-to-1 to 15-to-1, the student-to-administrator ratio fell from 84-to-1 to 68-to-1, and the student-to-professional-staff ratio fell from 50-to-1 to 21-to-1. Ginsberg concludes: “Apparently, when colleges and universities had more money to spend, they chose not to spend it on expanding their instructional resources, i.e. faculty. They chose, instead, to enhance their administrative and staff resources.”

[…]

And according to a 2010 study by the Goldwater Institute, administrative bloat is the largest driver of high tuition costs. Using Department of Education figures, the study found administration growing more than twice as fast as instruction: “In terms of growth, the number of full-time administrators per 100 students at America’s leading universities increased by 39.3% between 1993 and 2007, while the number of employees engaged in teaching research or service only increased by 17.6%.”

Colleges and universities are nonprofits. When extra money comes in — as, until recently, has been the pattern — they can’t pay out excess profits to shareholders. Instead, the money goes to their effective owners, the administrators who hold the reins. As the Goldwater study notes, they get their “dividends” in the form of higher pay and benefits, and “more fellow administrators who can reduce their own workload or expand their empires.”

But with higher education now facing leaner years, and with students and parents unable to keep up with increasing tuition, what should be done? In short, colleges will have to rein in costs.

When asked what single step would do the most good, I’ve often responded semi-jokingly that U.S. News and World Report should adjust its college-ranking formula to reward schools with low costs and lean administrator-to-student ratios. But that’s not really a joke. Given schools’ exquisite sensitivity to the U.S. News rankings, that step would probably have more impact than most imaginable government regulations.

Glenn Harlan Reynolds, “Beat the tuition bloat”, USA Today, 2014-02-17.

2 Comments

  1. I quite agree that administrative bloat is a major problem, but it doesn’t result from the ill-will or personal ambition of existing admins.Every time universirties turn around they are being told to expand their mandate and deal with some social issue that is not directly related to their teaching mission or even their research. Somebody has to do this work.

    Comment by steve muhlbeerger — May 25, 2016 @ 11:11

  2. it doesn’t result from the ill-will or personal ambition of existing admins

    Well, not always. Any bureaucracy has a built-in tendency to expand and to increase staff. Businesses suffer from this too, but there are harder limits to the bureaucracy where profit is a factor. Few universities have that constraint.

    As for the mandates from government to expand in this area or to add new requirements in that one, we can agree that the university is not at fault for the impetus. What’s that old saying about calling the tune?

    Comment by Nicholas — May 25, 2016 @ 11:22

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