Maine's Public University Fiscal Crisis

This month, the independent task force charged with standing Maine's public universities on a firm fiscal footing, released their report (read highlights here: http://kennebecjournal.mainetoday.com/news/local/6600967.html). While much of what was recommended makes sense (standardised accounting standards, cut low-enrollment classes and departments that constantly graduate less than 5 students a year, etc.), it doesn't get to the root of Maine's problem.

Public universities are just like any other state-subsidised corporation; they do not act within financial reality. Honestly, beyond community colleges that teach life skills needed to keep communities running and prepare students not yet ready to enter a four-year college, the government probably has no place in the higher education game. Since that is not politically realistic, let us look at a radical proposal for opening these colleges up to the market while preserving our support of education.

The reason public universities are so distorted is due to the state subsidy that allows them to offer lower in-state tuition. How about we replace this subsidy with refundable tax credits for all Maine high school graduates to attend any college they want. This way, someone who wants to attend Colby (or Bates or UNE or an Ivy or Daniel Webster or...the list could continue forever), would not have a perverse incentive to attend a school that is less right for him.

This would mean some of the universities would probably shut down. But that wouldn't be a bad thing. High school students would still receive the subsidy to attend college, and stronger schools like UMO (with its engineering and forestry programs) and UMF (with teaching) would be even better off as they would not be filled with high school graduates better suited elsewhere.

Finally, and bringing us back to the original point, strong chancellors like Rebecca Wyke (a Democrat this blog could get behind if she decided to throw her hat in for a higher office) would be able to truly see what U Maine's finances look like.