As the news fills with all the issues that localities are facing with regard to virtual learning and no "in-person" schooling for the elementary, middle and high schools all across the Commonwealth and the lack of adequate preparedness by the Northam administration, the political focus has shifted to colleges and universities in Richmond.
The question is why?
Everyone understands the value of Virginia's colleges and universities, however the skyrocketing premiums paid for tuition in higher education has been unsustainable for quite some time burdening Virginia families and students with continued student loan debt without any relief in truth for twenty years.
Virginia colleges and universities have been able to raise tuition and fees at will the past few decades so much that students today are being charged sometimes seven to ten times as much as their parents just two or three decades ago while the education lobbies have sought to prevent any alternative models in Richmond.
The college and university model in truth has never been afforded much competition. The lobbyists and politicians in Richmond have seen to that. For years other states have dedicated resources to distance learning at the college level and many well known universities have implemented massive online global campus programs to meet the needs of those seeking a degree or certificate in specific areas of study.
There is not one Virginia college or university known nationally for a distance learning program for adults, veterans or college bound students. In fact, about a decade ago there was push back from colleges and universities to keep such programs from even coming into existence in Virginia meanwhile place like the University Maryland Global Campus just across the Potomac River in Maryland now has over 85,000 students enrolled 100% online. Other states have similar programs. One such program is University of Texas El Paso- UTEP Connect which offers online programs targeting veterans as well as working families and students alike.
The question remains why Virginia with an estimated 750,000 veteran population has never determined to provide the resources for such programs at the state level to keep many of these veterans enrolled in Virginia instead of having to enroll outside the Commonwealth.
The pandemic has created much concern on campus however one of the real concerns that many are not addressing in truth is the fact that colleges and universities while dealing publicly with the Covid-19 situation and all the mandates are privately extremely concerned that the pandemic has now shown Virginia families that the four year college on campus "experience" may not offer the best method in terms of quality and affordability. For decades there has failed to exist true alternative for families other than the Virginia Community College System which has never been given its due with regard to the quality of education students receive. In fact, it was community colleges that were the first to implement limited distance learning programs for working adults years ago.
Now Virginia families are seeing that virtual learning or distance learning could have many benefits for college age students given it afford the opportunity for students to work while in college and stay at home if necessary and avoid campus living expenses and still receive a degree from the college or university. This creates a ton of fear at colleges and universities. No one wants to admit it but fact remains these colleges and universities are run like business entities that are subsidized by all tax payers.
So much attention is paid to elementary and secondary education that very little every gets discussed regarding how much the Commonwealth actually pays to support colleges and universities. In 2019 Democrats campaigned on raising the level of funding for public school systems some 1 billion a year to meet the needs of schools. In order to do so where is that funding going to come from in the state budget? Why is education getting funded in the manner it is while roads , bridges and infrastructure go unaddressed? Its very simple. Roads do not vote.
Instead you see Virginia Democrats setting the table to implement measures like use of "internet sales taxes"dedicated to education. This should remind everyone of the promises made regarding proceeds from the Virginia Lottery. Democrats are very skilled at identifying areas of opportunities that must be addressed however never seem to figure out how to actually pay for them without having to raise taxes or create new taxes.
In the 2020 General Assembly Session, Virginians got real insight into the political priorities of the new majority in Richmond. In an effort to raise teacher salaries driven by the Virginia Education Association (VEA) the state would implement a college and university tuition freeze however than offset the impact of the freeze on colleges and universities by also providing them additional funding directly from the state. In effect the state shifted the funding from families paying any increases in tuition to providing colleges and universities the funding directly from tax payers (all) to compensate for any deficeit the freeze may have created. In essence a clever bailout.
In essence, college and universities would not have to cut expenses or implement wide spread structural changes to operations or how they conduct business due to the freeze in tuition. Of course many would claim that is a very simplistic observation but true nonetheless. Here is an example of how budgets simply move things around as a result of the "tuition freeze":
"Old Dominion gets another $2.8 million next year to increase need-based financial aid to undergraduate and graduate students, a 7.7% increase. Norfolk State University will get another $816,000 for financial aid, a 3.7% increase. The budget also grants the university $548,000 a year for its new Center for African American Policy.
Christopher Newport University will get $125,000 next year to increase need-based financial aid by 1.2%. The College of William and Mary will get another $146,000 next year for needs-based financial aid for undergraduate and graduate students, a 0.3% increase.
As their share of the tuition freeze funds, ODU would receive $3.2 million; CNU, $2.8 million; NSU, $1 million;and William and Mary, $900,000." (The Virginian Pilot)
Has the college model really changed all that much? It is basically the same model most parents experienced in college in terms of structure and form. The credit hour model and requirements are relatively unchanged just like the "four year' model approach however one thing that has changed has been the interjection of more and more "political" influence upon basic courses in humanities. Campuses have become incubators for both progressive and socialistic theory at the expense of conservatism. The political forces in Richmond understand this and understand that the college campus is a driver for the social and political movements that are the underpinnings of the Democratic Party. Liberal and Progressive educators now far surpass Conservative on campus and many argue that it has never been harder for a conservative educator to get tenure than today.
What we are seeing now with families and more engagement in learning and the overall education process and that scares the education industrial complex. A complex that has created a business model that is so insulated from any economic reality that families or society ever face whether recession, depression or even times of war. Yet the one thing that they could not have predicted was the impact of the Covid-19 virus and how it would create more awareness from parents in terms of the options they face with regard to education now.
The politicians are now faced with the fact that the virus may create a situation where less and less students begin to enroll in college. This would in effect blow up the model that has been created. Parents today are asking themselves for the first time whether or not it really is of value anymore to send children to college campus of the education they can receive online or virtually is equal or even better and at substantial savings.
Why would the state have to continue to increase financial aid funding if less and less students enroll? Why is the state having to increase the funding in the first place? Is it due to the fact that tuition has ballooned out of control? Why are colleges and universities funded with state tax dollars not required to reduce operational expenses on their end and totally restructure in order to compete? Does not every college and university in Virginia whether public or private compete for each year's school enrollment? Is not the Commonwealth picking favorites in its budgets when it provides some schools with aid and others no aid. What is the model used to determine which schools get the aid?
In the real business world we are seeing closures as a result of the pandemic of 2020. Are we seeing a school closures? Is not what we are talking about today in Richmond nothing more than a "bailout" for colleges and universities unprepared for the impact of pandemic? Governor Ralph Northam and the Democrats have yet to offer a single plan regarding the economic recovery of business development and jobs in Virginia during the month long "Special Session" and yet seeks to advance the following:
"Governor Ralph Northam today announced a higher education refinancing plan that will save Virginia’s public colleges and universities more than $300 million over the next two years. The Commonwealth of Virginia will take advantage of low interest rates by refinancing bonds issued by the Treasury Board of Virginia (TBV) and the Virginia College Building Authority (VCBA), which institutions of higher education use for capital projects. The Governor was joined by George Mason University President Dr. Gregory Washington and state legislators for the announcement at the university’s Fairfax campus.
“The COVID-19 pandemic continues to have tremendous impacts on higher education, including the fiscal health of our colleges and universities,” said Governor Northam. “Families all over the country are taking advantage of record low interest rates to refinance their home mortgages, and we want our public institutions to benefit as well. Refinancing will free up millions of dollars in savings allowing our colleges and universities to make critical investments, meet the needs of Virginia students, and continue offering a world-class education.”
Virginia has successfully avoided cuts to higher education during the pandemic. The Commonwealth has worked hard to maintain its valued AAA bond rating, which has allowed the state to be eligible for these favorable interest rates.
“Our public higher education institutions are critical to Virginia’s success, and we know they are hurting right now,” said Senate Finance Committee Chairwoman Janet Howell. “Allowing them to refinance some of their debt is an innovative way to save money when they need it most, and I look forward to supporting the legislative portion of this proposal next session.”
Many Virginia colleges and universities have seen a decline in revenue traditionally used for bond payments. These institutions are also navigating uncertainty regarding in-person learning, with many unsure when or how students will return to campus. Under the Governor’s plan, institutions will make no principal payments on their VCBA bonds through fiscal year 2023. The proposed restructuring would also extend institutions’ payment plans for two years beyond their current schedule, for both VCBA and TBV bonds.
“As stewards of the Commonwealth’s finances, we are always seeking creative solutions to financial issues,” said House Appropriations Committee Chairman Luke Torian. “Helping public colleges and universities restructure their debt obligations allows them to focus their resources on the pressing needs they face right now as a result of the pandemic.”
As part of his plan, Governor Northam will work with the General Assembly to allow additional flexibility for higher education refinancing during the 2021 General Assembly session.
“Governor Northam is committed to supporting Virginia’s institutions of higher education,” said Secretary of Finance Aubrey Layne. “These savings will make a tremendous difference for our colleges and universities as they navigate these challenging times.” (Office of the Governor)
Colleges and Universities are vital to the economy however there is no argument that the educational industrial complex is vital to the Democratic Party of Virginia politically and it is clear that Democrats seek to allocate more and more funding in this area without any real strings with regard to operational changes that would reduce tuition on Virginia families.
Democrats see very little need to demand such structural and operational changes to the education industrial complex as it simply plans to use more and more tax dollars generated on the backs of Virginians to fund more and more financial aid funding for Virginia colleges and universities requiring every Virginian to pay more at the end of the day whether a family has a student enrolled in college or not.
At some point does the Virginia Legislature not have to take into account the massive endowments that many colleges and universities in Virginia are sitting on or does it simply keep ignoring that fact and continue to "bailout" one of the largest business enterprises in the Commonwealth of Virginia in the education industrial complex.
Lets get back to putting Virginia families and students FIRST! Not an educational industrial complex that fails to put the needs of students first.
Guest Commentator, Jonathan Scott
September 25, 2020
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