Private Colleges in Missouri May Become Less Competitive
Gov. Jay Nixon intends to increase funding to the Access Missouri grant program by $2.5 million. In addition to the funding increase, the governor wants to significantly decrease the amount of grant money that students attending private colleges are eligible to receive (by as much as $1,750 per student per year). Currently, private college students are eligible for grants up to $4,600 each, while public college students may receive a maximum of $2,150 each.
While Gov. Nixon’s plan to redistribute the grants more evenly between private and public institutions seems logical, economic implications tell another story. Generally, private colleges tend to be more expensive than public schools, so the higher grant money available to private school students is in actuality the same amount (or at least similar) offered to public school students in relative terms. If grants for both are relatively the same, then reducing the private school grant money would cause a disparity in competitiveness between public and private colleges, tipping the scale in favor of public colleges.
Furthermore, private colleges tend to provide more specialized degrees than the typical public college, so reducing grant money to private school students would have a negative effect on the diversity of the labor force.
Not to mention the fact that government spending/subsidies in any particular industry tends to drive up prices in that industry in the short and long term, as businesses move to garner more of the consumer surplus from the subsidized individuals. Plus subsidies provide a negative incentive for cost-cutting, and all manner of other serious problems with subsidies.
This move is as bad as you say and in fact much worse.
Comment by Josh Smith — February 20, 2009 @ 9:41 a.m.
With all of your “competition” arguments aside, I would bet that in Missouri the majority of the private colleges are “church based”. They should receive less then public colleges – thank you very much.
Comment by zapper6264-news — February 26, 2009 @ 8:44 a.m.
I share your concern of separation versus church and state, but the distinction should be made between private schools that teach religion and private schools that are affiliated with a religion. I would say that most are mere affiliations. Also, according to the article linked in the post, there are no public schools in Missouri that offer a degree in architecture, so if private schools decline, Missouri might have less architects.
Comment by Ryan — February 26, 2009 @ 12:16 p.m.
Not sure about Missouri, but I attended college in Michigan. Many colleges were founded out of some sort of religious sentiment. My own college is “historically affiliated” with a denomination. But the affiliation means nothing in terms of student admissions, curriculum, student life, or anything else that is meaningful. I suspect that this i true of many private colleges.
Comment by John — February 26, 2009 @ 1:15 p.m.
In Michigan I can believe what you say. In the state where the private University I attended is located I can believe it. Not in Missouri! With all due respect, if you tell me that a student gets more tuition subsidy for attending Evangel or SBU then UMSL or UMKC – then something is wrong with this picture. Very wrong.
Comment by zapper6264-news — March 1, 2009 @ 10:07 a.m.