Who Is Responsible for the College’s Semester Hike Fees in the USA?

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Table of Contents

Introduction
Funding cuts
Budget deficits
Effect on students
Future planning and budget allocations
Conclusion
Works Cited

Introduction

The hike in semester fees in USA has arisen due to the absence of adequate state funding for colleges. So it could be said that it is the lawmakers who are responsible for this unexpected hike in semester fees. There is an uncovered deficit of $33 Million caused by overspending in the last fiscal and this amount has to be recovered from the students, since there is no other option in sight. (Jordan).

Funding cuts

Further there have been deep slashes in the State aids to college and educational.

Institutions that has led to the present state of affairs. According to reliable sources, “Deep cuts in state aid – amounting to $29.6 million this year alone, or 16.4 percent, of the state’s $180 million aid package for the 2007-2008 school year “has left the authorities with no other choice but to hike the fees. (Baird).

Therefore, it could be said that the main reasons for the hike has been due to the paucity of Funds from public treasury, which used to be a normal way of carrying out of functioning of the colleges, including rendering of top quality education to students, and preservation of highest standards of teaching and discipline.

Another factor that impinges upon this could be seen in terms of the fact that students from other states need to pay more in order to claim admission in State universities, thus creating an artificial increase in the fees etc. Although this system may be seen in terms of alleviating situations by which the local students are denied, or suffer lower admission rights, due to presence of outside state students, it also has aspects of hiking fees indirectly.

Budget deficits

“From the viewpoint of many public policymakers, the judgment is clear and persuasive: quality higher education is a precious state reserve that must be secluded for the community, largely accountable for its financial support, especially in today’s environment of fiscal constraint. “ (Frost, Hearn and Marine).

The colleges are faced with a deficit of nearly 4.5 Million, caused by budgetary cuts in funding, and which normally should be resolved through State funding. However, it is believed that State would not be in a position to fill this gap since the State Treasury is itself in a precious economic position with other pressing commitments. Therefore, it would not be reasonable to blame the colleges for raising the fees since they are left with no other alternatives, but to hike fees. It is seen that hiking fees are an often used and effective tool for augmenting college resources. But they fail to address the problems faced by underprivileged students who would not be able to meet these requirements without State aid. If fee hikes and aid cuts are a recurrent feature in college education, there would soon be a time when sections of students would not be able to afford college anymore.

Thus, the future state itself would become uneducated and this would spell disaster for all. “Under the “worst-case scenario” — the 8-percent cut — colleges would receive $147.1 million in state aid next year, and tuition and fees would increase by 20 to 25 percent. URI might have to close an academic college to absorb the decrease in state support, officials said.” (Jordan).

Effect on students

Again, it is seen that part-time students could also be severely affected, since they would have to pay their fees upfront. Even in the earlier system they needed to scrape in order to be able to pay off the loan dues against fees, boarding and lodging, etc. Now, with a cut in state aid and concomitant hike in fees, they are put on the sword, in more ways than one.

“A deadly combination of a slump in government support for public universities and an increase in admissions has resulted in ‘the worst fiscal news for public higher education institutions and their students in at least a decade’, with the bottom line being that students are having to pay more but are getting less in return. “ (Fees Hikes Will Put Of Poor, Says US Report: Article Abstract).

If one were to take a strict and conservative view of financial aspects of running colleges, than it is seen that a lot of economic discipline and cost cutting remain to be fulfilled and implemented. For one thing, it is necessary for the college bursars to cut down strongly on wasteful and superfluous expenses and use funds only for necessities. As far as could be possible, actual expenses on needs like electricity, water bills, canteen expenses, etc should match or be below budgetary allocations, since the latter are many drafted and implemented keeping realistic estimates of costs, including a degree of inflation. Thus if there are wide discrepancies between budgeted and actual figures, concern needs to be voiced and the offenders need to be taken into task. To a large extent, the need for maintaining conservatism in college administration and cost matters must be evinced, in order that profits can be lengthened and economies achieved.

In the case of hikes, it needs to be seen that only justifiable hikes need to be entertained.

Future planning and budget allocations

The fact that subsidies and grants are needed for college functioning speaks about the strong sense of dependency that continues to beset colleges, in that they are not able to be self-financing colleges that are able, at least partly, to raised funds and resources for maintaining their institutions without having to depend upon external aids or support for carrying out their teaching.

It is necessary for colleges to estimate well in advance, at least for the next five years, on one hand, their revenues, resources and incomes, (including Federal and State aids) on the one hand, and their proposed expenditures and outflows, on the other hand. Thus, it is possible for them to plan and control expenditures, in a more rational and coherent method.

Having known the specific commitments and responsibilities that a college has towards its student community, it would be well-positioned to work, without the scope of such action plans and programs. It would serve as an excellent financial and budgetary road map that could also address concerns like Federal and State Grants, funding requirements and allied aspects and concerns. Thus, an issue like increase in semester fees, and its impact on the economic functioning of the institution could be well determined in advance. This would also help in the resolution of such issues to the satisfaction of all concerned. Budgets and budgetary allocations not only serve as good road maps, but could help in seeking other avenues, or alternative methods of funding should and when the need arises.

Conclusion

Thus, it may be concluded that it is the lawmakers that are primarily responsible for the hike in fees for slashing and drastically reducing State aids to colleges, thus leaving no alternatives, but to resort to deficit financing through fee hikes, to keep their institutions going. However, it is also necessary that the college authorities also need to consider other avenues for mopping resources, in order to provide more revenue opportunities in the future. By following a cost-conservative and parsimonious economic policy, it is possible that colleges would be in a better position to manage scarce resources to the best of their abilities and to be able not to be unduly perturbed by future prospective aid cuts.

Works Cited

Baird, Susan A. Education: Board Hikes Fees at R.I’s State Colleges. Providence Business News. 2008. Web.

Fees Hikes Will Put Of Poor, Says US Report: Article Abstract. 2008. Web.

Frost, Susan H., Hearn, James C., and Marine, Ginger M. Journal Article Excerpt: State Policy and The Public Research University: A Case Study of Manifest and Latent Intentions. 1997. Vol.68.

Jordan, Jennifer D. Rhode Island News: Board of Governors Approves Tuition, Fees Hikes. Projo.com. 2008. Web.

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