Saturday, November 22, 2008

Putting A Price On Education

Two news items, one in The Tampa Tribune and the other in the St. Petersburg Times, taught me a very good lesson about how the State of Florida has little concern for the education of college-bound students, another example of putting greed before common sense.

I find that each newspaper has its own valid editorial positions on social and political issues. The reporters of each paper often provide different content on newsworthy, each with more in depth information than the other on most topics. I couldn’t have home delivery for one without the other.

The St. Petersburg Times reported on a proposal to raise tuition rates by up to 15% at all 11 state universities, following the approval given to 5 institutions during the past year, the University of Florida, Florida State University, the University of South Florida, Florida International University in Miami and the University of Central Florida. The current cost to college students in Florida are much lower than the national average by nearly $2800 per school year. Student increases would be about $200 per semester.

After vetoing an across the board 5% tuition increase last year, Governor Charlie Crist now backs the 15% increase because of state budget cuts. Limitations allow a maximum of 40% in additional intuition fees in any three-year period. At this rate it’ll take eight years for Florida tuition rates to catch up with the national average. Of the total increases, 30% will support financial aid for low-income students. The other 70% would be used to recruit and retain faculties.

The Tampa Tribune, also on November 20th, gave its opinion on the [editorial page] that the Florida Board of Governors will consider to include itself in the evaluation of university presidents. Of course, the presidents would rather maintain the current process that allows their local boards to evaluate their compensation, however self-serving it is.

The paper goes on to give readers statistics from the annual report issued by the Chronicle of Higher Education. For instance, University of Florida President Bernie Machen earns more than $731,000 in total compensations and ranks as one of the 10 highest in the United States. Five other Florida university presidents earn well above the national average of $427,000.

The higher education system in Florida runs parallel to the ways and means of corporate CEOs countrywide. Their boards pump up the salaries and bonuses of their officers over and above what most of us would consider reasonable and affable dollar amounts, especially when their worth doesn’t balance well with the performance of the company. Subordinates get peanut shells in comparison, just enough to maintain the status quo as the upper echelon sacrifice the longevity of loyalty for the opportunity to hire upstarts at much lower salaries or entice other professionals with higher compensation than tenured employees.

Take for instance the contention between the faculty and administration of UCF. President John Hitt was given a 46% raise. Vanessa Fortier, director of the University Office, received a 41% increase. And Abraham Pizam, dean of the Rosen School of Hospitality Management, got a boost of 24.5%. One third of the 99 administrative positions received raises above 10% with an overall average of 9.37%.

Another example can be found at the College of Education where Dean Sandra Robinson got a 23.9% raise even though the college ran a deficit of $1.3 million.

At a time when college funding is constantly being reduced, it’s no wonder faculty members are outraged at the discrepancies in monetary compensations. Their concerns center not only on salaries but the ever-decreasing moneys available to provide the basic needs of managing class room activities, such as Xerox paper and phone services. They are further demoralized when faced with reprimands or dismissals because of problems in their classes; it’s difficult to manage classes of 300 students.

So, what realistic solutions might there be to offset reduced funds? The Florida Budget & Taxation Reform Commission could have made a positive difference but they squandered their once-every-20-year meeting with seven proposed amendments that were subsequently reduced to four.

A property tax swap was determined to be full of mathematical errors that would have left the state a shortfall of $4B dollars. Public funding for religious institutions was felt unconstitutional and outside the realm of the Commission’s responsibilities. The school voucher initiative was deemed wrought with wording that would have ultimately been sent to the Legislature for interpretation. This is what you get with devotees to Jeb Bushels of crappy leadership.

Since the FB&TRC failed in their duties, what’s left to consider?

While visiting Rapid City, South Dakota, I noticed that SD and Florida have some very difference approaches in providing tax revenues while neither have a state income tax.

Florida property taxes are valued at 100% minus a homestead exemption of 25% and an additional $25,000 for those over 65. An annual 3% cap applies but moving within the state to another property annuls any previous savings. South Dakota properties are assessed at 85% of market value between counties, taking into consideration replacements costs, comparable property sales figures and projected income from a property; tax reductions can come in the form of refunds for senior citizens and disabled persons.

Sales tax in Florida is 6% (excluding food and drugs); additional county sales taxes could accumulate to a total of 9.5%. South Dakota sales tax is 4% (excluding drugs) with municipalities having the option of adding 2%.

Gas taxes are 32.6 cents per gallon in Florida - 24 cents in South Dakota.

The biggest difference between the two states is the cigarette tax: 33.9 cents in Florida compared to $1.53 in South Dakota!!! Very few eating establishments provide smoking areas in SD; both states allow outside accommodations. Smoking is a discretionary expense and results in higher medical costs for everyone.

If only the Budget and Reform Commission had been more astute to provide a better selection of amendment instruments that could have resolved these insurmountable financial challenges.

There would be strong opposition from a large party of lobbyists to nearly triple the cigarette sales tax, so a compromise could combine a moderate increase with a tweak of the state sales tax, perhaps a half-cent instead of the penny increase that’s been discussed.

It’s a shame that instructors always get the short end of the stick when administrators reap such greater benefits, including public school teachers who are the backbone of providing the basics of knowledge to the next generation.

In all levels of government, the quality of leadership determines the health of a community. Governor Charlie Crist and the Florida Legislature need to provide a more concerted effort at meeting the demands of providing necessary services to their constituents, especially all levels of the educational system.