Director: Daniel C. Levy

Private Competition for Public Money in Washington

(Entry by Daniel C. Levy)

PROPHE Summary:

Washington State is considering a plan to allow its 10 private colleges to compete with public counterparts for state-funded students in high-demand fields such as nursing, engineering, and computer science. The plan would help the state use private colleges to handle a portion of the unmet need for higher education and solve the over-enrollment problem in public colleges. Though small in scope for now, the proposal has sparked controversy. Senate Republicans and the private colleges urge the government to sign the plan because it helps use all available resources well. But a leading House Democrat claims that the plan should be vetoed since Washington hasn't yet adequately financed its public colleges.

For the full story see EdInvest News, March 2004. "Private colleges may compete for publicly funded students," by David Ammons.

PROPHE Observation:

This policy debate engages the large issue in the U.S. and internationally of public funding for private higher education. Many of the 50 U.S. states help pay for students studying in private colleges and universities. The present proposal takes an extra step by potentially using public money to fund students in private colleges in particular fields where the state sees a shortage. Proponents invoke a classic argument for the public funding of private higher education: it is cheaper for the public to finance that way than to assume a greater cost proportion where the students are enrolled in public institutions. The political party breakdown echoes that seen at the primary-secondary education level, with Republicans more favorable and Democrats more opposed, the latter arguing for increased direct support for public institutions.