Grab a Brew- Don’t Cost Nuthin’

May 7, 2008

(Guest Post by Matthew Ladner)

On May 1st, the Arizona Senate Higher Education committee held a hearing on the university “stimulus plan.” The idea is to have the state borrow $1.4 billion to build new buildings on the state’s three public universities. Governor Napolitano, Phoenix Mayor Phil Gordon and Arizona State University President Michael Crow all spoke in favor. One thematic message: this borrowing can more than pay for itself by increasing the percentage of Arizona workers with a college degree.

Tempe Mayor Hugh Hallman stole the show, noting that ASU students have a high per capita beer consumption rate, providing an economic stimulus to Tempe.

Hallman’s observation however might help to explain graduation rates. Don’t get me wrong- I drank my share of beer as an undergraduate. Someone else’s too. Nevertheless, I managed to graduate in 4 years, something 73 percent of ASU students fail to do. Education Trust rated Arizona State University against 7 similar peer institutions and found Arizona State had the lowest 6-year graduation rate of the bunch.

If we did need additional graduates, more focus on absurdly low graduation rates could do the trick. A fraction of the eighty million dollars a year in debt service would pay for a tremendous amount of financial aid, tutoring, and even the additional course offerings that some students might need to graduate on time. I’ve yet to hear the sad story of the student who dropped out for lack of fancy new facilities.

However, it is far from obvious that the state “needs” additional college graduates, given that many graduates currently work in jobs which do not require degrees.

This begs the question: do Arizona universities need new buildings, or new priorities?


Arabian Gulf Money and US Universities (Continued)

May 7, 2008

As I established in my last post, gifts and contracts from Arabian Gulf countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) are a large portion of all foreign funds given to US universities.  And those countries give much more relative to the size of their economies than do almost all other countries.

Before discussing where that money is going and what it means, I should state my preferences upfront.  To the extent that Arabian Gulf money in US universities is reducing criticism of those regimes and increasing criticism of the US and Israel, I think that is a negative development.  Gulf countries, principally Saudi Arabia, are currently governed by fundamentally illiberal regimes that are relatively oppressive toward political, religious, and cultural dissent within their countries.  They also promote a foreign policy agenda that is antithetical to desirable US values and interests.  And while the US and Israel are certainly worthy of criticism, they are generally forces for good in that they offer relative freedom within their countries and generally promote positive values outside.  To dwell on the errors of the US and Israel while neglecting the abuses of Arab states is an inversion of moral priorities. 

I understand a full defense of these views would require a longer argument and am prepared to offer one at a later time.  For our purposes, I assume (and think most readers would agree) that promoting more criticism of the US and Israel while suppressing criticism of Arab states is a bad thing.

 So where does Arabian Gulf money go in US higher education?  Most of what is reported is categorized as “contracts,” not gifts.  Of the almost $322 million from Gulf states, nearly $234 million is labeled as contracts.  The contracts appear mostly to be for the purchase of support and research related to Arabian Gulf oil production.  For example, $111 million of the $234 million in contracts went to Carnegie Mellon University from the Supreme Council for Information and Technology in Qatar.  Another $19 million went to the Colorado School of Mines from the  Adu Dhabi National Oil Company.  There may be political effects of these contracts, but they appear to be largely related to economic activities.

That leaves a little more than $88 million in total gifts (not contracts) from Arabian Gulf donors since 1995 that have gone to 14 US universities.

Recipients of Arabian Gulf Gifts Since 1995
   
American University (The) $500,000
Boston University $1,500,237
Columbia University $500,000
Cornell University $10,900,000
George Washington University $11,953,519
Georgetown University $16,232,667
Harvard University $11,871,563
Howard University $250,000
MIT $10,000,000
Michigan State University $926,740
Rice University $2,750,000
Texas A&M University $1,498,671
Tufts University $1,000,000
University of Arkansas $18,312,524
   
Total $88,195,921

 While $88 million feels like a lot of money, it is an extremely small portion of university endowments.  According to the National Association of College and University Business Officers, the 785 higher education institutions they surveyed had a total of $524 billion in endowments as of fiscal 2007.  That makes the Arabian Gulf contributions .02% of the total.  Even at the 14 receiving universities listed above, the Arabian Gulf money is a small portion of their individual endowments.  For example, at Georgetown the reported gift constitutes 1.5% of their endowment.  At the University of Arkansas, where I am a professor but not a beneficiary, the Saudi gift is little more than 2% of the endowment.  Nowhere else is the gift amount in excess of 2% of endowment.

The income generated from these gifts is an even smaller portion of the annual operating budgets of these institutions.  Normally less than 5% of endowment gifts can be spent annually, meaning that $88 million dollars would generate less than $4.4 million in money that could be spent each year.  At George Washington University the FY 2008 budget calls for $553 million in revenue, while the almost $12 million Arabian Gulf in gifts should produce roughly $600K, or .1% of annual revenue.  At Columbia University the FY 2006 budget reports almost $2.7 billion in revenue, while Arabian Gulf gifts would produce roughly $25,000 of that, which is basically rounding error.

While the Arabian Gulf countries are dispropotionately large foreign donors to US universities, the size of their gifts pales in comparison to the total endowments or annual budgets of these institutions.  American universities may be cheap dates, willing to do quite a lot for that marginal dollar, but they aren’t that cheap.  It’s unlikely that Arabian Gulf money is buying a significant change in the priorities of the universities to which they are donating. 

It’s true that the 14 recipient universities include a disproportionate number of academics who are willing to offer apologies for Arab atrocities while inflating US and Israeli misdeeds.  For those who would rely on David Horowitz’s list of the 101 most dangerous professors as a guide (and I am in no position to endorse or refute his list), 16 are housed in these 14 universities.  Given that there are almost 1,000 colleges and universities in the US, having almost one-sixth of the “dangerous professors” at these 14 universities is a fairly high concentration. 

Arabian Gulf money tends to go where there are professors friendly to their world view.  The money may give those professors a larger megaphone, but for the most part they were already at these institutions and their views were unchanged by receiving the gift.  So, Arabian Gulf money is unlikely to be buying much of the priorities of universities or the views of the recipient professors.

But before we breath a sigh of relief, we need to consider the scale of these gifts relative to pre-existing funding in Middle Eastern Studies.  Having $4.4 million to spend each year may not be a large amount of money to US universities, but it is quite a lot of money within the relatively limited world of Middle Eastern Studies.  People wishing to have productive careers in that field may alter the emphasis of their work in the hopes of attracting another $18 million gift.  And the power of recipients of these gifts to reward like-minded friends and punish critics is enhanced.  This all helps populate Middle Eastern Studies programs and the State Department and CIA, which hire their graduates, with people inclined toward a Gulf Arab view.

Martin Kramer articulated the problem: “Of course, this is why we can’t ever expect to get the straight story on Saudi Arabia, Wahhabism and oil from people who operate within Middle Eastern studies. If you want a fabulously wealthy Saudi royal to drop out of the sky in his private jet and leave a few million, you had better watch what you say — which means you had better say nothing.” 

But if the problem is that prospective (not established) Middle East experts can be bought on the cheap, an obvious solution presents itself.  People who think there should be more criticism of Saudi Arabia and less of the US and Israel should make their own gifts to universities.  Countering $88 million over a dozen years from the Gulf Arabs shouldn’t be beyond the collective financial reach of supporters of US and Israeli world views.

Of course, working out the details with universities can be a tricky business for people wishing to promote greater emphasis on certain issues, but there are organizations that can help facilitate that process.  For example, the Veritas Fund for Higher Education Reform, run by my friend David DesRosiers, works with donors to ensure that their intent is followed.

And people can only effectively counter Arabian Gulf influence if they are aware of how much money is being given and to where it is going.  Toward that end, Stanley Kurtz has called for legislation that would enhance the transparency of foreign donations while worrying that the existing information, on which I base my analysis, may be incomplete.

In sum, the problem of Arabian Gulf influence in US higher education is real, but can effectively be countered and contained by those with opposing views.


Arabian Gulf Money and US Universities

May 6, 2008

A number of observers have noted some large gifts originating from Saudi Arabia and other Arabian Gulf countries to US universities.  The purpose of this post is to put in perspective how large those gifts are.  In subsequent posts I’ll discuss where the money is going and what it may mean.

The motivation for this post comes from Stanley Kurtz, who has a piece over at National Review Online with a list of gifts and contracts from foreign sources to U.S. universities.  Kurtz rightly emphasizes: “To treat all or even most foreign gifts to American colleges or universities as somehow nefarious would be a serious mistake. America’s institutions of higher education — with their superb programs in science, medicine, and engineering — rightly benefit from the largesse of America’s foreign friends and allies, many of whom have benefited directly from the technical expertise developed in these institutions.”

But he continues: “On the other hand, there are reasonable grounds to fear that some foreign donations may purchase undue influence over the way in which highly controversial subjects are treated in American lecture halls.”

I would add a further caveat that gifts to universities rarely, if ever, lead professors to alter the views they hold.  The slogan, “follow the money,” is a gross oversimplification of how academia works.  While one can’t simply buy ideas in academia, it is important to examine donations as an indicator of priorities in those institutions.  The money doesn’t buy ideas, but it can buy emphasis on some issues and some types of academics over others.

That being said, Arabian Gulf money is clearly a significant issue in higher education.  According to the federal filings Kurtz reproduces, Arabian Gulf gifts and contracts to US universities have exceeded $321 million since 1995.  That’s more than 16% of all reported gifts and contracts from foreign sources. 

To put the magnitude of those gifts in perspective, the Arabian Gulf states from which the money came have economies that represent less than 2% of global GDP (excluding the US).  So, their share of foreign gifts to US universities is eight times as large as their foreign share of global wealth production.  The Arabian Gulf states are exceptionally interested in US higher education.  The breakdown by country can be seen in the table below: 

Gifts and Contracts from Arabian Gulf States to U.S. Universities Since 1995
       
  Gifts and Contracts % of Total Foreign Gifts Share of Global GDP (ex US)
BAHRAIN $8,199,058 0.42% 0.05%
KUWAIT $7,639,854 0.39% 0.27%
OMAN $9,046,801 0.46% 0.12%
QATAR $151,702,156 7.75% 0.13%
SAUDI ARABIA $92,972,720 4.75% 1.10%
UAE $52,058,098 2.66% 0.28%
       
Total Gulf States $321,618,687 16.44% 1.95%

How do these figures compare with gifts and contracts from other foreign sources to US universities?  If we look at donations from the 10 largest trading partners with the US (excluding Saudi Arabia, which ranks 9th), we see that they are roughly proportionate to their share of global GDP.

Gifts and Contracts from Top Trading Partners (ex Saudis) to U.S. Universities Since 1995
       
  Gifts and Contracts % of Total Foreign Gifts Share of Global GDP (ex US)
 Canada  $73,418,414 3.75% 2.45%
 Mexico  $21,272,215 1.09% 2.60%
 China  $53,266,855 2.72% 13.55%
Japan $257,196,140 13.15% 8.36%
Germany $207,624,660 10.61% 5.45%
 United Kingdom  $163,232,433 8.34% 4.13%
 Korea, South  $42,893,079 2.19% 2.32%
 France  $62,638,953 3.20% 3.98%
 Netherlands  $34,800,500 1.78% 1.23%
       
Total $916,343,249 46.84% 44.09%

The highest ratio of share of foreign gifts to share of GDP is 2 to 1 among these major trading partners.  Certainly none of these countries gives at a rate that is 8 times out of proportion with its wealth. (Although as South Park would say, we have to watch those Canadians, with their floppy heads and pointy eyes.)

Tune in here for a discussion of why the Arabian Gulf states may have such a strong interest in US universities and what it may all mean.

This Piece Continues Here.


Odds and Ends

May 3, 2008

Florida just passed an expansion of its tax-credit funded scholarship program (read: vouchers).  You can see the bill here.  So much for vouchers being politically dead.

Also here is a neat new study in Education Next by William Howell and Marty West that finds that Americans seriously under-estimate how much is spent per pupil in K-12 public education as well as how much teachers are paid. 


More Special Ed Voucher Study

May 3, 2008

I’ll be on C-SPAN with Marcus Winters Monday morning at 9 am ET to discuss our new study on special education vouchers.  The show is Washington Journal, which has a call-in format.  We look forward to hearing from you!

You can find links to the study and some op-eds in the announcement below:

New Report by Jay Greene and Marcus Winters
 Manhattan Institute senior fellows Jay P. Greene and Marcus Winters have released a new report entitled, “The Effect of Special Education Vouchers on Public School Achievement: Evidence from Florida’s McKay Scholarship Program.” The authors conclude that the McKay program has had a positive effect on the quality of education that public schools provide to disabled students.
To read the report, click here.


WASHINGTON TIMES SERIES:Winters and Greene have been featured in a three part series for The Washington Times, read their articles below.The Politics of Special-Ed Vouchers Jay P. Greene and Marcus Winters, Washington Times,05-01-08
Vouchers for special-ed students Jay P. Greene and Marcus A. Winters, Washington Times, 04-30-08
Vouchers and Special Education Marcus A. Winters and Jay P. Greene, Washington Times, 04-29-08


OP-ED:
A Special-Ed Fix, Jay P. Greene and Marcus A. Winters, New York Post, 04-30-08
INTERVIEW:
An Interview with Marcus Winters: Special Education Vouchers, EdNews.org, 4-30-08       

UPDATE

Here’s another op-ed in an Arizona newspaper.


Get Lost 2

May 2, 2008

And now for another installment in our weekly Lost discussion. (If you don’t care about Lost, just skip to the other posts).

A central theme in Lost has been the ambiguity about whether events occur as a matter of luck or as the result of a supernatural plan.  It’s true that it would have to be incredible luck, but up until the most recent episode everything (or almost everything) could be explained without resorting to the supernatural.

Now the ambiguity is dissolving and it is becoming very clear that supernatural explanations are required.  The most obvious sign of this is the introduction of dead people as characters who talk to multiple people, carry things, etc…  In other words, we can no longer hold onto the possibility that the appearance of a dead person is simply the delusion of a single living person.  The show has largely foreclosed the possibility of psychological explanations.

I think this takes some of the fun out of the show since a central mystery is being resolved.  It’s true that we still have to discover the nature and purpose of these supernatural forces, but that’s a much less interesting puzzle.  Once we get into the supernatural, the rules could be whatever they want them to be.


More Political Donations from Academia

May 2, 2008

A little more detail on the data I gathered for my earlier post about political contributions from university employees…

The dollars involved are not trivial.  From the top ten ranked universities I examined, more than $2.2 million was donated to candidates and supporting organizations during the 2008 election cycle alone.  Harvard led the pack with more than a half million dollars in contributions.  The results for all ten are here:

Political Contributions During 2008 Election Cycle
  Dollars Number of Donations
Princeton $151,433 208
Harvard $502,234 539
Yale $218,656 258
Stanford $292,660 461
Penn $197,038 273
Cal Tech $28,581 41
MIT $17,430 31
Duke $139,236 239
Columbia $397,231 510
Chicago $293,580 414
     
Total $2,238,079 2974

The Way of the Future in American Schooling

May 2, 2008

(Guest Post by Matthew Ladner)

In the Aviator, director Martin Scorsese tells the story of Howard Hughes, had perhaps the biography of Howard Hughes been written by Ayn Rand. Hughes is portrayed by Leonardo DiCaprio as obsessively pushing the envelope forward in aviation, breaking both technical and legal barriers to progress.

Hughes’ pursuit of progress runs him into conflict with Pan-American airlines and their minion in Congress, Senator Brewster, played by Alan Alda. Brewster seeks to protect the monopoly status of Pan American in providing trans-Atlantic flight, and uses the investigative powers of Congress in order to coerce Hughes. Consumers will be better served by a monopoly, Brewster explains, a position that Hughes finds “Un-American.”

Hughes asks Brewster “do you really want to go to war with me?” Brewster replies:

“It’s not me, Howard. It’s the United States government. We just beat Germany and Japan. Who the hell are you?”

This being a movie, of course, our rugged individualist hero prevails, decisively crushing Senator Brewster and Pan-American in dramatic fashion in a Senate hearing showdown. Travelers enjoy the enormous benefits of aviation competition to this day.

Sadly, in the real word, other monopolies have rather more staying power than Pan-Am, including sadly our education laws. A fine line exists between stability and stagnation. In education policy, we have been content to sail well past that line. Our answer to all education problems was to put in more money. In 1960, the average spending per pupil was $375 (around $2300 in inflation adjusted dollars). Today, we spend close to $10,000 per pupil. Even after adjusting for inflation, spending per pupil in the public school system as more than tripled since the first baby-boomers attended schools.

Our education problems worsened despite the increased spending. Today, 38 percent of our 4th graders have failed to learn basic reading skills, and around a third of our high school students dropout of high school. As today’s dropouts are largely those students who failed to learn to read in elementary schools, tomorrow’s dropouts are already in the pipeline.

Andrew Coulson recently noted that the last great innovation to transform American classroom instruction came with the invention of the chalkboard in 1801. Consider this level of stasis in comparison to the computer industry. Today, you could literally throw a dart in the computer section of a department store and have it land on a personal computer which is more powerful and cheaper than what was available two years ago. By comparison, the school system continues to plod along, always spending more but often producing less.

The productivity of spending in our public education system has collapsed over the past half century. We spend beyond the dreams of avarice for a public school superintendent of the 1960s, but we don’t produce better results. For decades, we have been throwing money at our public schools and failing to notice that students were failing to benefit.

Fortunately, this status-quo will not endure forever. A growing consensus on both left and right recognizes that our most disadvantaged students suffer most from the shortcomings of our schools. Children relying most heavily on schools to prepare them for the future are tragically the most likely to be shortchanged.

Our nation’s poorest families cannot afford to buy into high-quality suburban school districts, or to pay private school tuition in addition to their school taxes. Policymakers from both parties have therefore increasingly embraced policies creating options for parents. Nationwide, nearly a fourth of K-12 students won’t be attending their neighborhood public schools this fall, opting instead for an array of public and private options- including magnet, charter, private and home schooling. Arizona, Georgia, Iowa, Ohio, Rhode Island and Utah have all passed new school choice programs in the last two years. For many, especially for inner-city children, however, these options remain far too scarce and this momentum must accelerate.

Charter school operators such as KIPP, Yes Academies and Amistad have proven definitively that low-income inner city children can learn at an accelerated pace, and can even outperform our complacent suburban schools and attend elite universities. These innovators face huge political and practical obstacles in making these schools more widely available, but don’t bet against them. Already, they have settled the question of whether we must settle for today’s failed status quo: we don’t. Our students can learn. We adults simply have to learn how to follow the example of those who are getting the job done.

Our students need a market for K-12 schools. The market mechanism rewards success and either improves or eliminates failure. This has been sorely lacking in the past, and will be increasingly beneficial in the future. The biggest winners will be those suffering most under the status-quo.

New technologies and practices, self-paced instruction and data-based merit pay for instructors, may hold enormous promise. Before the current era of choice based reforms, they didn’t fit the 19th Century/unionized model of schooling, so they weren’t seriously attempted. Bypassing bureaucracy, a new generation has begun to offer their innovative schools directly to parents. Some have already succeeded brilliantly. Some states have been much keener than others to allow this process. Expect the laggards to fall in line eventually. We can hardly continue to cower in fear that someone somewhere might open a bad school when, in reality, we are surrounded by them now.

A market system will embrace and replicate reforms which work, and discard those that fail to produce. A top-down political system has failed to perform this task. Where bureaucrats and politicians have failed miserably, however, a market of parents pursuing the interests of their children will succeed in driving progress.

We cannot feel satisfied with a system that watches helplessly as a third of pupils drop out before graduation each year. We can do much better. The key lies in matching disadvantaged students with high quality teachers and school leaders. Parental choice programs help to achieve this by providing new education delivery methods.

While there will be enemies to fight this progress, but they won’t prevail. America is rousing itself from a century long slumber of stagnant schooling practices. We have nothing to lose and everything to gain from the coming education renaissance, so long as we have the wisdom to embrace it.


Reading First Disappoints

May 1, 2008

A new study released today by the U.S. Department of Education finds that Reading First, the phonics based federally-funded reading program, failed to yield improvements in reading comprehension.  The study doesn’t demonstrate that it is ineffective to emphasize phonics; only that it was ineffective to adopt this particular program.  That could be because there are problems with the design or implementation of Reading First.  Or it could be because the control group was also receiving phonics instruction without the particular elements of Reading First.  And it is possible that phonics is less effective than some people thought.

Whatever the explanation, this well-designed study undermines confidence that instructional reform, like Reading First, can alone transform the educational system


Political Donations from Academia

May 1, 2008

It shouldn’t come as a surprise to anyone that academics give more money to Democrats than Republicans.  But when you actually examine the political donations data, it is shocking to see just how uniformly one-sided the contributions are. 

I obtained information on political donations from the Open Secrets web site, which gets its data from federal filings.  I then identified the top ten ranked universities according to US News and World Report.  I searched Open Secrets for all political contributions during the 2008 election cycle for people who listed these top 10 universities as their employer.  Here is what I found:

Distribution of Political Donations During 2008 Election Cycle
  Dollar Value # of Donations
   % Dem % Dem
Princeton 81% 88%
Harvard 92% 94%
Yale 94% 94%
Stanford 84% 90%
Penn 86% 90%
Cal Tech 94% 88%
MIT 93% 94%
Duke 81% 84%
Columbia 78% 91%
Chicago 96% 96%
     
Total 87% 91%

Almost nine out of every ten political contributions from employees of these universities went to Democratic candidates or supporting organizations.  There was almost no variation across institutions.  Among these top universities it didn’t matter whether it was a technical institution or not; it didn’t matter what region it was in.  Academics overwhelmingly donate to Democrats. 

I also examined how much was given to Obama relative to Clinton.  Here, too, academics are clearly further to the Left, as can be seen in the table below.  Almost three-quarters of contributions to those two candidates went to Obama.  Compare this to a relatively even split among primary voters and delegates.

Split of Clinton and Obama Donations 
  Dollar Value # of Donations
   % Obama % Obama
Princeton 75% 83%
Harvard 68% 74%
Yale 70% 77%
Stanford 73% 72%
Penn 84% 83%
Cal Tech 74% 85%
MIT 92% 96%
Duke 76% 85%
Columbia 56% 63%
Chicago 97% 95%
     
Total 74% 78%

I also did a small test to see if these patterns were unique to elite institutions.  I collected the information for the University of Oklahoma, which is ranked 108th (according to USNRW) and is located in a solidly Republican state.  The results are basically the same.  93% of all dollars contributed from U of OK employees go to Democrats and Obama gets 97% of the contributions to him or Clinton.

Obviously, academics are free to donate to whomever they prefer.  And I have no problem with an institution, especially a private one, being lopsided in its political preferences (which we are imperfectly measuring via campaign contributions). 

But I do find these results troubling in two ways.  First, if universities are going to lack balance in the perspectives that are represented on campus, they should be open and honest to prospective students and donors about that imbalance.  Like Christian colleges, they should declare their focus and priorities up front rather than pretending that they are inclusive of all views.

Second, I am troubled by the lack of diversity across institutions.  If the process by which we train, hire, and tenure academics is intellectually open and healthy, we should expect that at least some universities would contain a relatively even divide of political views and some would even be lopsided toward the Republicans.  The fact that we do not see this should make us worry about whether higher education is being hindered by an ideological cartel.  Not every unit or every college has to be balanced, but higher education as a whole should have greater ideological diversity if it is going to contribute to the intellectual progress of the country.