From Tommy Kaelin, PPI <[email protected]>
Subject PPI's Progress Report: Administrative Bloat At U.S. Colleges Is Skyrocketing
Date August 30, 2023 7:59 PM
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Progress Report
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News, events, and must-read analysis from the Progressive Policy Institute.
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** Administrative Bloat At U.S. Colleges Is Skyrocketing
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By Paul Weinstein Jr.
Senior Fellow
For Forbes ([link removed])
Basic economics tells us that when demand goes down, suppliers must reduce costs, cut supply, or lower prices to survive. That is the choice facing many U.S. colleges and universities starting in 2025, when the so-called “enrollment cliff,” begins. Between 2025 to 2029, undergraduate headcount will drop by over 575,000 students (15 percent) and, if recent history is an indicator, many schools will end up closing their doors rather than streamlining their operations.

The reason is that most institutions of higher learning are dependent on tuition revenue for survival. While a handful of elite universities (think Harvard, Stanford, Princeton) have endowments large enough to cover the cost of attendance for any student in need, the rest require undergrads to borrow on average over $30,000 to earn a bachelors.
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READ THE REPORT

As America’s students are heading back to school in the coming weeks, non-instructional spending at colleges and universities — which includes spending on administration and student services — have been skyrocketing over the last several decades.

Report author Paul Weinstein Jr., Senior Fellow at PPI, outlines the reasons administrative expenses and personnel at post-secondary institutions are rising and specifically reviewed faculty versus non-faculty positions at the top 50 universities in the country.

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Staff Spotlight: Paul Weinstein Jr.

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Paul Weinstein Jr.
Senior Fellow
Paul Weinstein Jr. is a PPI senior fellow and from 2005 to 2009 served as the organization’s chief operating officer. Weinstein is currently the Director of the MA in Public Management program at Johns Hopkins University and a consultant to the Promontory Interfinancial Network, a leading fintech firm. A veteran of two Presidential Administrations, he was senior advisor to the National Commission on Fiscal Responsibility and Reform (Simpson-Bowles), which was created by President Obama to address the nation’s mid- and long-term fiscal challenges. Weinstein formerly served as Special Assistant to the President and chief of staff of the White House Domestic Policy Council, and then later as senior advisor for policy planning to the Vice President during the Clinton-Gore Administration.
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