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June 19, 2011 The Economic Upside to Ending Tenure By Naomi Schaefer Riley In her new book, The Faculty Lounges: and Other Reasons Why You Won't Get the College Education You Paid For (Ivan R. Dee), Naomi Schaefer Riley argues that faculty tenure is among the factors contributing to the decline of higher education in the United States. Here is an excerpt from the book. If colleges were to eliminate tenure tomorrow, they'd have to pay faculty higher salaries. That's what most economists-and common sense-will tell you. Lifetime job security is a perk, like health insurance or a company car. If you take it away, you'll have to compensate in another way to get the same quality of employees. Tenure means not having to worry about having to find new employment in middle age, and that means a lot to professors. As the George Mason University economist Tyler Cowen explains, "In a lot of academia, once you're over 50 it's hard to get another job, even if you've done well." He compares it to being a computer programmer, where age seems to be a disadvantage no matter how talented you are. Taking an academic job without the promise of tenure is what Cowen calls "a massive risk." So there would have to be a lot of money on the front end to make up for it. In the long term, though, the costs might even out. Higher education would have a more sensible-looking labor market, in which colleges could ensure that all the faculty members were pulling their weight. This is particularly important for small colleges, says Bruce Johnstone, who has served as president of Buffalo State College and a vice president at the University of Pennsylvania. Large universities, in his experience, "tend to have ways of cushioning the existing departmental configurations a bit better than community colleges or small private colleges." Johnstone, who has also been a trustee at a small, independent college, says smaller institutions "need to add and subtract programs much faster and therefore need

"Tenured Faculty in Nevada Lose Pay Protection The Nevada Board of Regents has changed its regulations so that if the state orders salary cuts of state employees, tenured faculty members are more likely to be included among those who lose some of their pay, The Reno Gazette-Journal reported. Current regulations require the board to declare a financial emergency before tenured faculty members can lose any of their salaries, and the board declined to do so during the last state-ordered pay cut. The shift means that any future cuts will affect tenured faculty and other employees consistently."

Private Gains, Public Stagnation March 7, 2011 The median base salary increase for faculty members in 2010-11 was 1.1 percent, with increases of 0.0 percent at four-year public institutions and 2.0 percent at private institutions, according to a report being released today by the College and University Professional Association for Human Resources. For public institutions, this is the second year in a row where the median increase is no increase at all. The median increase for faculty members at private institutions last year was 0.1 percent, so that sector is seeing a real rebound this year. In 2008-9, private institutions also outpaced publics in the size of the median increase in faculty salaries -- 4.0 percent to 3.5 percent.

"The Solution They Won't Try June 4, 2010 By Bob Samuels If public universities are really committed to promoting access, affordability, and quality, they should consider increasing their funding by accepting more undergraduate students instead of raising tuition and restricting enrollments. While many would argue that higher education institutions are already unable to deal with the students they currently enroll, in reality, it costs most public research universities very little to educate each additional student, and the main reason why institutions claim that they do not get enough money from state funds and student dollars is that they make the students and the state pay for activities that are not directly related to instruction and research. To calculate how much public research universities spend on educating each undergraduate student, we can look at national statistics regarding faculty salaries and how much it costs a university to staff undergraduate courses. According to a recent study by the American Federation of Teachers, "Reversing Course," the average salary cost per class for a tenured professor at a public research university is $20,000 (4 classes at $80,000), and it costs $9,000 for a full-time non-tenure-track teacher and $4,500 for a part-time instructor to teach the same course."

Breaking Bad Habits: Navigating the Financial Crisis by Dennis Jones and Jane Wellman The "Great Recession" of 2009 has brought an unprecedented level of financial chaos to public higher education in America. Programs are being reduced, furloughs and layoffs are widespread, class sizes are increasing, sections are being cut, and students can't get into classes needed for graduation. Enrollment losses upwards of several hundred thousand are being reported-and only time will tell whether the situation is even worse. Reports of budget cuts in public institutions in the neighborhood of 15 to 20 percent (Pennsylvania, Virginia, New York, Florida, and California) are becoming common. Halfway through the 2009-2010 fiscal year, 48 states were projecting deficits for 2011 and 2012 (NASBO, 2009). Although states are reluctant to raise taxes, they evidently have less of a problem letting tuitions go up. And up they are going-California, Oregon, Washington, New York, Wisconsin, and Florida announced increases ranging from 10 to 33 percent. The normally tuition-resistant Florida legislature has authorized annual increases in undergraduate tuitions of 15 percent per year until they reach national averages for public four-year institutions. Around the country, the increases are setting off student protests reminiscent of the 1960's, variously directed at campuses, system boards, legislatures, and governors-complete with reports of violence and arrests. The New Normal Higher education has been through tough times before. The pattern of the last two decades has been a zigzag of reductions in state funds for higher education during times of recession, followed by a return to revenue growth about two years after the state coffers refill. But resources have not returned to pre-recession levels. So the overall pattern has been a modest but continuous decline in state revenues. Caption: Percent Change in Appropriations for Higher Education, 1960-2006