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More students, less funding

Emily Zulz/Administration Editor

Issue date: 10/20/08 Section: News
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During the past 10 years, the number of high school graduates attending universities has increased significantly while funding for those universities has not, according to an Organization for Economic Co-operation and Development study.

"Our institutional costs continue to rise; our state support is not rising with that so we have to identify other means of providing a high quality education to more students," said Jill Nilsen, vice president for external relations. She said it goes back to fundraising.

"If we can find philanthropic support through scholarships, that increases accessibility of higher education for more students, again, with decreasing state government support," Nilsen said.

OECD's 2008 Education at a Glance study also demonstrates the challenge of meeting a growing demand and increasing quality in higher education institutions, which requires increased resources.

OECD brings together governments of countries committed to democracy and the market economy and is one of the largest publishers in the fields of economics and public policy, according to its Web site.

The study reports that while the public budget for education has expanded in the past 10 years from 11.9 percent in 1995 to 13.2 percent in 2005, that funding does not match the increased number of students enrolling in higher education institutions.

On average in OECD countries, the number of high school graduates entering higher education institutions increased 57 percent in 2006, an increase from 37 percent in 1995.

The study shows how countries like the United States, Canada, Japan and others have reacted to this by increasing costs to expand their university population.

President Bill Perry said the enhancement of the quality of a university education requires investment of resources.

He said sources of revenue to invest in the university and its educational programs include revenues realized through decreased operational costs, and increased revenues from fundraising, tuition, state appropriations and grants.

"At Eastern, we are taking a balanced approach by creating cost savings and avoidance, enhancing our fundraising potential and results, carefully using state appropriations, and sensibly increasing our tuition after taking all other factors into account," Perry said.

Eastern's tuition for incoming students rose 12 percent this year, a $23.30 per credit hour increase.

From the 2005-06 school year to the 2006-07 school year, tuition increased $20.85 per credit hour.

The 2008 edition of Education at a Glance showed that public money is still paying for most of the costs for higher education in most OECD countries, and on average, private spending covers about one-quarter of the total bill.

Although, the study reports, during the past five years private spending comprised more than 50 percent of spending on higher education in the United States.

Nilsen said private philanthropic dollars help fund and move projects forward when the university is not getting state support.


Emily Zulz can be reached at 581-7942 or at eazulz@eiu.edu.
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