Competition Driving Up University Costs

Just like free agency has grown the budgets of pro sports franchises, so has competition increased the cost of running universities.

Daniel Hurley of the Michigan Association of State Universities applauds Governor Rick Snyder’s budget proposal, which increases higher ed spending by 4.3 percent.

He also notes it’s long overdue, as the cost of running a university keeps going up. Contributing to that is the competitiveness in keeping high profile professors.

He says it’s especially true of researchers, who bring in tens of millions in research dollars.

He laments that increasingly, wealthier private universities have been raiding top professors from smaller state supported universities.

There’s also increasing costs of competing for students, with more money invested in amenities for students, such as food service and exercise facilities.