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The revenue-to-cost spiral -- and how to stop it
From our friends at the Pope Center comes a new and timely paper about why tuition and fees at our universities rise so quickly. The Revenue-to-Cost Spiral, written by Centre College professor emeritus Robert E. Martin, examines the incentives and governance structures that lead to higher education inflation. Martin's essay is of interest to the stakeholders in higher education--trustees, donors, parents, taxpayers, and students -- who are often unaware of how why higher revenues in higher education can lead to higher costs, which are then used to justify a never-ending quest for more revenue. But in addition to shedding light on the problem, Martin also proffers some solutions that board members can use to break the "revenue-to-cost spiral," specifically the increasing of financial transparency and better engagement of the trustees in cutting costs. His paper is well worth a read.
Posted by Sandra E. Czelusniak on July 06, 2009 at July 6, 2009 05:25 PM
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