Nevada Hikes University Tuition Another 8%

The Nevada university system regents voted to raise tuition another 8%. They just raised it 13% this year and it caused a significant reduction in enrollment. Along with that they continuously cancel classes and reduce programs available to students.

While I realize the economic environment is bad for just about everyone and every business entity out there including public services of all types; there seems to be a certain logic lacking in how the universities are trying to balance their budgets. By cutting revenue.

If you are in the business to educate people and your revenue comes from having students in a classroom paying for a class does it make sense to reduce the number of classes available? Simple economics tells you the first four to ten students pays the teacher’s salary depending on what that professor makes; then the next eleven to thirty students are profit to go toward other expenses. So cancelling classes and reducing revenue surely appears to exacerbate the financial crisis for the universities. Especially in an economic environment where large unemployment figures; and in Nevada they are enjoying the largest figures in the country; are encouraging people to go back to school.

In addition, continuing to raise the price of taking classes is pricing the cost out of the unemployed or underemployed students’ reach which further reduces the universities revenue.

The is the same logic as if Dennys decided to stop selling breakfast during morning hours to reduce costs.

To add more insult to injury the universities are choosing to shut down entire education programs and lay off teachers in an effort to balance their budget and better their bottom line. Reducing the available programs encourages the graduating high school students to leave the state for their college education elsewhere. This strategy is in direct opposition to the state that has been trying to recruit people to come to Nevada for education and business for many years.

Perhaps the ultimate goal is for the doors of all the universities to be permanently closed.

Simple economics tells you that you need revenue to pay your bills. The universities need butts in seats in classrooms to get out of their financial hole. Instead, they are taking every measure to reduce the number of butts in seats and slashing their revenue in the process. I fear the university system is headed for financial ruin.

This state continuously ranks last in the U.S. for economic health and opportunity for jobs and lifestyles. It has gone from one of the top states to the bottom of all the rankings for places to live and excel.

Does one dare to even dream the leadership of this state will figure out they keep making the wrong decisions before it implodes entirely. The economy of this state has been nosediving since Sept 11, 2001 and the methodology that has been used isn’t working. Logical thinking would dictate it is time to take a different approach.


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