Back in the old days (before the federal government started subsidizing higher education with easy loans and grants), college education didn’t cost very much. In 1966, a year at Harvard cost $1,200. Since then, costs have risen dramatically. One reason why is that spending on administrators has ballooned.
In today’s Martin Center article, Harrington Shaw looks at some new data on this problem.
He writes:
Public universities in North Carolina could substantially reduce students’ reliance on federal loans by eliminating excessive administrative costs. The administrator-to-professor ratio in North Carolina — calculated by dividing the number of employees listed as “managers,” “business and financial operations” staff, and “office and administrative support” by the number of professors, associate professors, and assistant professors — stands at 1.29, which means 129 campus bureaucrats for every 100 actual teachers.
Non-profit entities are known for careless spending. What do all those staffers do?
Shaw continues:
According to economist Richard K. Vedder, growth in administrative spending is largely attributable to “wraparound services,” with administrators being hired to manage “mental health, entertainment, intramural sports, academic support, workforce preparedness,” and diversity, equity, and inclusion initiatives.
Read the whole thing.