Is Tenure the Driver or Red Herring of Higher Education Costs?

Is Tenure the Driver or Red Herring of Higher Education Costs?

Turnover for college leadership is increasing. Enrollment is down and the U.S. population is barely growing. University and college costs are high, as is student debt. Still, when COVID hit, institutions of higher learning turned on a dime and figured out how to continue adding value and justify costs when so many other aspects of society simply paused. The solutions adopted in COVID’s early days prompted renewed discussions about college costs and whether there are ways – like changing tenure laws – to make higher education more accessible for everyone over the long-term.

Modern-day tenure laws for higher education were born over 80 years ago. They existed before personal computers, MTV, microwaves, Facebook, and more. Education traditionalists assert the rights afforded to pursue truth, challenge the status quo, and answer tough questions can never be outdated. Tenured professionals are protected to explore the unexplored and ask the unanswered through research that is not tied to capitalism or politics but is for the common good. Not everyone agrees.

Some believe tenure drives up costs, amounting to tens or hundreds of thousands of dollars over one person’s career, and translating into higher tuition. There are also questions about whether tenure adds value, driving performance and results, and benefits students.

There are questions to be answered on the flip side of the argument. If a state changes its tenure laws, what will that mean to accreditation and its colleges’/universities’ ability to compete against schools in other states and around the world? What impact will it have on public versus private institutions within the same state? What will it mean to higher education in the long-term?

It’s an understatement to say higher education is in a state of disruption (like most industries once the initial panic about COVID passed).

At the end of last year, Hawaii followed the lead of several other states in evaluating the role of tenure in higher ed and the appetite for change.  While some interesting proposals were brought to the table – like only offering tenure for teaching professionals and librarians (not purely researchers) – strong resistance by educators and institutions of higher learning paused progress, for now, but the conversation appears far from over.

In Georgia, the American Association of University Professors is challenging changes to tenure policies that would allow firing, the revocation of tenure, or suspended pay for not meeting performance standards. In South Carolina, 2021 ended with a bill on the table to eliminate tenure for future higher educators. Across the U.S., there’s a growing appetite for change in higher education, but the jury’s still out on what that will look like and when.

One interesting data point: Apparently, only one in four faculty hired at colleges/universities is on a tenure track. BestColleges reports that from 1975 to 2015, tenure-track positions decreased by 50% and full-time tenured positions dropped by 26%. This leads to the question: Is targeting tenure reform really the answer?

Another interesting point: After college costs increased by 169% from 1980 to 2019, according to the College Board’s 2021 Trends in College Pricing and Student Aid report, tuition increased at historically low rates and even decreased, when adjusting for inflation. Does this mean higher education costs have turned a corner or is the slowdown in growth temporary and resulting from the CARES Act and Higher Education Emergency Relief Fund?

One final consideration: Is the tenure discussion part of a larger narrative focused on reinventing higher education in a post-COVID world? What is the role of government versus higher education leadership? What will higher education and its delivery models look like 5 or 10 years from now? What will all of this mean to institutions of higher learning in New York State?

The answers are coming and may be more far-reaching and complex than tenure. Stay tuned. Remember! Your partners at RBT CPAs are here to help ensure you meet all your financial obligations; understand how COVID relief funds impact budgets, reporting, and taxes; and help ensure you’re prepared should an audit be required. Contact your local office for assistance.

SOURCES: FORBES, Best Colleges, Brookings.Edu, CNBC, Mckinsey & Co.