Wednesday, June 20, 2012

The revenue stream is dry

Blue Virginia highlights the opinions of a George Washington University professor upset with the Board of Visitors - and dreaming of days that are long gone.
The Visitors shouldn't be looking at online learning. Just get their friends in government to kick in more with the revenue stream.
Revenue problems for public universities are not originating in competition from online learning programs. They're coming through systematic defunding by state legislatures. Higher education in America faces its share of problems, to be sure. Tuition soars and students are racking up mountains of debt. But the underlying revenue model faces no direct threat. A modern-day Good Will Hunting might gain his education through MIT's online lectures rather than a Boston public library card, but the great mass of privileged 18-year-olds will keep heading off to college.
For those who haven't been watching, the state revenue stream has been drying up.
Other mandates - Medicaid, pensions, local education - have drained the stream.
Colleges can't depend on that stream building up again.
If you can't get more money from the state, you've got to cut costs. Or bring in more money from more students.

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