{"id":45307,"date":"2018-09-17T12:48:13","date_gmt":"2018-09-17T19:48:13","guid":{"rendered":"http:\/\/world.edu\/?p=45307"},"modified":"2018-09-17T12:48:13","modified_gmt":"2018-09-17T19:48:13","slug":"federal-funding-for-higher-ed-comes-with-strings-attached-but-is-still-worth-it","status":"publish","type":"post","link":"https:\/\/world.edu\/federal-funding-for-higher-ed-comes-with-strings-attached-but-is-still-worth-it\/","title":{"rendered":"Federal funding for higher ed comes with strings attached, but is still worth it"},"content":{"rendered":"

\"\"

College costs<\/p><\/div>
\nWhen nonprofit colleges and universities get federal funding for research and to support students, do government regulations make it difficult to fulfill their missions?<\/p>\n

As a professor who studies the\u00a0organizational performance of nonprofits and government agencies<\/a>, I\u2019ve tried to understand if accepting that money has any downsides in terms of the main mission of many of these schools: teaching.<\/p>\n

Federal funding<\/strong><\/h4>\n

Public funding cuts<\/a>\u00a0in recent years have eroded state support for higher education, triggering tuition increases. As a result, the cost of going to college is rising much faster than income at a time when a college education is becoming\u00a0increasingly essential<\/a>\u00a0for American workers seeking jobs that pay well.<\/p>\n

The federal government, however, funds\u00a0meaningful research<\/a>\u00a0that yields scientific and economic benefits. Thousands of companies have origins in federal research funding, and useful innovations like composite lumber and kidney dialysis machines come directly from federally funded research.<\/p>\n

But government support for higher education takes many other forms. It includes federal loans and Pell Grants, as well as funding for research and student-focused programs like\u00a0TRIO<\/a>, an outreach program for students from disadvantaged backgrounds.<\/p>\n

In exchange for the funding obtained through federal contracts and grants, schools must do specified work and\u00a0follow detailed rules<\/a>\u00a0that govern how to spend these funds and administer the programs that get this funding. For example, funding for\u00a0McNair Scholars<\/a>, an initiative to increase student access to graduate-level research, is tied to\u00a0regulations<\/a>\u00a0that govern what kinds of student support are permissible.<\/p>\n

\"\"<\/p>\n

Urban myths<\/strong><\/h4>\n

Some nonprofit leaders say that rules and requirements that come with federal funding can\u00a0slow organizations down<\/a>. Since the rules can make it harder for schools and other institutions to remain flexible, and the reporting requirements can use up valuable staff time, this extra onus may result in inefficiency.<\/p>\n

The Trump administration has\u00a0tried to justify its recent attempts to further cut federal funding<\/a>\u00a0with similar logic, arguing that the burdens that accompany federal funding can hurt colleges and universities.<\/p>\n

The roots of these ideas can be found in mainstream economics. Many influential think tanks like the libertarian\u00a0Cato Institute<\/a>\u00a0assert that governments can\u2019t know what is best for people \u2013 including students \u2013 and therefore should have a minimal role in funding or regulating their activities.<\/p>\n

According to this theory,\u00a0heavy-handed<\/a>\u00a0attempts to govern the organizations governments fund can unduly slow down progress and waste resources.<\/p>\n

But the notion that federal spending is inherently wasteful has been\u00a0debunked by many studies<\/a>. Researchers have found that jumping through the hoops government funding demands does not\u00a0make things worse<\/a>\u00a0than not getting that money in the first place.<\/p>\n

The rules that accompany government funding can, for instance, lead to a decrease in\u00a0health insurance coverage disparities for people of color<\/a>\u00a0and\u00a0widen access to special education<\/a>\u00a0in rural communities. Federal rules can help organizations meet important social goals and make sure funds are used for their intended purpose.<\/p>\n

Leisha DeHart-Davis<\/a>, a University of North Carolina School of Government professor, calls this effect \u201cgreen tape<\/a>.\u201d<\/p>\n

In short, federal higher education funding leads to inefficiency only if the costs exceed the benefits. But when I sought to find out whether increases in federal funding bog down nonprofit higher education institutions, I found that federal funding is unrelated to how efficiently colleges and universities operate.<\/p>\n

No holding back<\/strong><\/h4>\n

I reached this conclusion after examining<\/a>\u00a0financial and organizational data between 2008 and 2014. I focused on relatively small nonprofit colleges and universities like Shaw University and Loyola University, Maryland because they have limited ties to state governments and limited research expenditures.<\/p>\n

I then reviewed their federal contracts and grants, as those are the kinds of federal support the Trump administration is most likely to cut.<\/p>\n

First, I measured how efficient each college or university was by comparing its spending to its student outcomes. Then, I measured if increasing federal revenue would change how efficient each college was. The technique I used allowed me to take other relevant factors into account.<\/p>\n

As I explained in the the journal\u00a0Nonprofit Management & Leadership<\/a>, I found that increasing federal funding had no significant effect on how well nonprofit colleges used their budgets.<\/p>\n

Federal support increases spending on programs that support students, but this funding typically targets important outcomes \u2013\u00a0particularly for colleges with lots of first-generation students<\/a>.<\/p>\n

It also does not appear that federal grants and contracts infringe upon the schools\u2019 student-focused missions because the spending that the federal government encourages and regulates often helps students as intended.<\/p>\n

Moving beyond the myths<\/strong><\/h4>\n

Based on my findings, I believe that instead of assuming government funding higher-education funding is wasteful, policymakers and federal agencies like the Department of Education should rely on rigorous program evaluations to guide funding decisions.<\/p>\n

Many of the initiatives that the federal government funds directly benefit campuses. Federally funded research initiatives are not only the\u00a0backbone of innovation<\/a>, but\u00a0can help students as well<\/a>\u00a0because much of the funding is for initiatives that improve student outcomes.<\/p>\n

Even when the funded initiatives come with rules and regulations, many commonly aired assertions to justify major cuts are not backed up by data that I can find.<\/p>\n

Author Bio:<\/strong> Jason Alix Coupet is an Assistant Professor of Public Administration at North Carolina State University<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

When nonprofit colleges and universities get federal funding for research and to support students, do government regulations make it difficult to fulfill their missions? As a professor who studies the\u00a0organizational performance of nonprofits and government agencies, I\u2019ve tried to understand if accepting that money has any downsides in terms of the main mission of many […]\n… learn more→<\/a><\/p>","protected":false},"author":33,"featured_media":45308,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[224417],"coauthors":[11733],"class_list":["post-45307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-higher-education","tag-federal-funding"],"acf":[],"yoast_head":"\nFederal funding for higher ed comes with strings attached, but is still worth it - World leading higher education information and services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/world.edu\/federal-funding-for-higher-ed-comes-with-strings-attached-but-is-still-worth-it\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Federal funding for higher ed comes with strings attached, but is still worth it - World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"When nonprofit colleges and universities get federal funding for research and to support students, do government regulations make it difficult to fulfill their missions? 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