Over at Reason (which, by the way, is hiring), there’s a blog post about an assortment of budget cuts former Indiana Governor Mitch Daniels has made at Purdue, where he is now president. I offer no comment as to the goodness or badness of such measures in this case, although the fact that the school’s administration had grown by nearly 75% over the prior 13 years may be of interest.
What got my attention was the following comment from reader “Don’tShootMe”:
The ACA requires insurance companies to spend at least 85% of premium revenue on medical care. What’s good for the goose, is good for the gander. Require any institution that has students that are getting federal loans to spend 85% on “instruction.” Otherwise, no student loans. Since the administrative elites think that is such a good solution for medical care, see how they like it for education.
Obviously this would be over the top at a place like Mondoville; buildings must be maintained, for example, and because we’re so small (even crying poverty in the opening of our alma mater: “Though small, nor rich in worldly goods…”), just keeping the physical plant running might well be more than 15% of our income. Furthermore, a significant portion of administrative jobs are created as a result of the tangles of laws, regulations, and accreditation standards that act as what would elsewhere be called “unfunded mandates.” Even so, one wonders if the commenter may be on to something.