The End of Independent Schools?

Forbes Magazine has an interesting article by Maurna R. Desmond called The Coming College Bubble?

I believe it is a harbinger of the fate many secondary independent schools will also face. Public education will be confronting a financial crisis very soon.

From the article:

Home builders and banks aren't the only ones facing economic headwinds these days. America's undercapitalized independent colleges are staring at a spiral of major threats to solvency as penny-pinching students and parents consider cheaper options, and funding sources dry up. As a result, they could be the next bubble industry to pop.

The crush is coming fast. According to a September 2008 study by the National Association of Independent Colleges and Universities, of the 504 member institutions surveyed, one-third said the credit crunch had hurt enrollment, and about a fifth of respondents said they had fewer returning students than expected. Roughly the same number said they had a smaller incoming freshman class than expected.

But while head counts slide, needs rise. Demand for student aid is up, but charitable donations from foundations and individuals will fall during a downturn. Ditto for investment returns. And thanks to tanking tax revenue, federal aid may take a hit, too. Taken together, many independent institutions start to look vulnerable. "They are financially precarious for sure," says Sandy Baum, a Skidmore College economist and senior policy analyst at the College Board.

"Country Club" Closed?

The crunch will be particularly bitter for the institutions that drained coffers to build "country club colleges" complete with luxury dormitories, spas and top of the line sports complexes to lure choice students, hoping that a sharper crowd would lead to more accretive diplomas, entering a profitable cycle of more successful alumni and increased donations.

Many had little choice. "If a college decides we're not going to have fancy dorms or build a shiny new gym, students are not going to that college," says Baum. "People are not choosing the lowest price college, and that's a consumer issue, not a public policy problem."

Adds William Powers, the president of the University of Texas at Austin: "The market is choosing quality regardless of incremental costs."

Blowing Bubbles

This is at a price. College tuition has increased by more than three times the rate of inflation for the last 20 years, despite U.S. wages flat-lining since 2000. The average tuition at a private four-year institution grew 6.6% year-over-year in 2007 to $23,712, according to the College Board. This is pricey in itself, but when you add in all the luxe living expenses, the total bill touches $50,000 a year at the high end.

To the chagrin of financial advisers, students are increasingly turning to higher interest private loans to meet the burgeoning college bill. Private loans made up 24% of total education loans in 2006-07, up from 6% a decade ago. In 2008, students secured $20 billion in private loans--amounting to roughly a fifth of total undergraduate borrowings for the year. Taxpayers pony up, too, chipping in an average $4,000 per student through government loans and grants to private institutions, which usually come up with $3,720 in aid (often in the form of discounted tuitions) as well.

It's a scenario familiar to anyone who watched the housing bubble blow. "We are at a trend line that cannot be sustained," says Matt Snowling, an analyst at Friedman, Billings and Ramsey, who covers the student loan industry. "Tuition must go down, or there will be limited demand at high-priced private schools."

Free - Carry Your Windows Apps on a Thumbdrive

The Portable Apps site offers a free set of Windows applications that fit on most any portable drive. They're all free. Many are great and what a nice way for schools to off load responsibility for desktop maintenance of applications.

By standardizing on free applications parents don't have to buy school software, students take it all with themselves, and the schools merely offer a generic and inexpensive computer to host the student's drive on.

Sweet.

Fiscal Responsibility

This article talks about the dire economics facing this country in just a few short years.

I sure wish somebody would listen.

GAO chief warns economic disaster looms

By MATT CRENSON, AP National Writer

Calculations by Boston University economist Lawrence Kotlikoff indicate that closing those gaps — $8 trillion for Social Security, many times that for Medicare — and paying off the existing deficit would require either an immediate doubling of personal and corporate income taxes, a two-thirds cut in Social Security and Medicare benefits, or some combination of the two.

Why is America so fiscally unprepared for the next century? Like many of its citizens, the United States has spent the last few years racking up debt instead of saving for the future. Foreign lenders — primarily the central banks of China, Japan and other big U.S. trading partners — have been eager to lend the government money at low interest rates, making the current $8.5-trillion deficit about as painful as a big balance on a zero-percent credit card.

In her part of the fiscal wake-up tour presentation, Rogers tries to explain why that's a bad thing. For one thing, even when rates are low a bigger deficit means a greater portion of each tax dollar goes to interest payments rather than useful programs. And because foreigners now hold so much of the federal government's debt, those interest payments increasingly go overseas rather than to U.S. investors.

More serious is the possibility that foreign lenders might lose their enthusiasm for lending money to the United States. Because treasury bills are sold at auction, that would mean paying higher interest rates in the future. And it wouldn't just be the government's problem. All interest rates would rise, making mortgages, car payments and student loans costlier, too.

A modest rise in interest rates wouldn't necessarily be a bad thing, Rogers said. America's consumers have as much of a borrowing problem as their government does, so higher rates could moderate overconsumption and encourage consumer saving. But a big jump in interest rates could cause economic catastrophe. Some economists even predict the government would resort to printing money to pay off its debt, a risky strategy that could lead to runaway inflation.

Macroeconomic meltdown is probably preventable, says Anjan Thakor, a professor of finance at Washington University in St. Louis. But to keep it at bay, he said, the government is essentially going to have to renegotiate some of the promises it has made to its citizens, probably by some combination of tax increases and benefit cuts.

But there's no way to avoid what Rogers considers the worst result of racking up a big deficit — the outrage of making our children and grandchildren repay the debts of their elders.

"It's an unfair burden for future generations," she says.

You'd think young people would be riled up over this issue, since they're the ones who will foot the bill when they're out in the working world. But students take more interest in issues like the Iraq war and gay marriage than the federal government's finances, says Emma Vernon, a member of the University of Texas Young Democrats.

"It's not something that can fire people up," she says.

The current political climate doesn't help. Washington tends to keep its fiscal house in better order when one party controls Congress and the other is in the White House, says Sawhill.

"It's kind of a paradoxical result. Your commonsense logic would tell you if one party is in control of everything they should be able to take action," Sawhill says.

But the last six years of Republican rule have produced tax cuts, record spending increases and a Medicare prescription drug plan that has been widely criticized as fiscally unsound. When
President Clinton faced a Republican Congress during the 1990s, spending limits and other legislative tools helped produce a surplus.

Legalizing High School Robbery

Thanks to Republicans like Rob Simmons, most high school students who will depend on financial aid of one kind or another will be lucky to keep a shirt on their backs. The latest tax legislation is carefully crafted to offer a few crumbs to the middle class while punishing parents and students.

As Connecticut Blue observes, "Simmons is one of the few Second District residents that will benefit from this bill. The rest of us will be saddled with paying the principal and the interest on the debt we will rack up in order to transfer our money to rich people like Rob". The Center on Budget and Policy Priorities lists the criminally negligent consequences of Bill: H R 4297.

$20 for the middle class, $43,000 for millionaires. Middle-income households would get an average tax cut of just $20 from the agreement, according to preliminary estimates by the Urban Institute-Brookings Institution Tax Policy Center, while the 0.2 percent of households with incomes over $1 million would get average tax cuts of $43,000, and the top 0.1 percent of households (whose incomes exceed $1.6 million) would get average tax cuts of $84,000.

But to complain about this -cough- "transfer" of wealth from the not-rich to the ultra-rich would be nothing more than petty jealousy on the part of the not-rich so we can't talk about how it will affect local budgets.

You see, when the not-rich have less money to spend the not-rich are less likely to vote for school and local government budgets. Bad for schools, fire departments, police, and other not-rich constuencies.

But let's peel the onion one more skin.

Today, The Student Business by Ralph Nader, is an article that talks about your child's chances of ever paying off a student loan.

In February Congress did act on student loans in another way - backward. It cut $12 billion out of the student loan programs, mostly from students and parents. In a report just out, the California Public Interest Research Group (CALPIRG) found that in California, 17.9% of public college students and 28.8% of private college graduates have unmanageable student loan debt were they to take jobs as teachers or social workers. Yet these critical careers desperately need college graduates to replenish their ranks. (To download the full report, go to http://www.calpirg.org. See also http://www.studentloanjustice.org.)

Last Sunday, May 7th, I turned on CBS' 60 Minutes which unloaded on Sallie Mae in a devastating segment about its power, greed and profits.

Originally a government-sponsored enterprise like Fannie Mae, Sallie Mae was privatized in 1997 and is now the largest private lender to students. But not entirely private. The federal government is its guarantor. Michael Dannenberg of the New America Foundation told Leslie Stahl: "It may be called 'private'.but it's not private at all. Frankly it's a socialist-like system. It's not as if this private entity is assuming any risks. No, no, no. The law makes sure that this so-called private entity has virtually no risk."

It gets worse. Let's say a graduated student defaults. The government pays Sallie Mae both the principal and the interest compounded. But the loan is still subject to collection. Guess who owns some of the largest collection agencies - you guessed it, Sallie Mae. When its collection agency collects, it gets 25% of the recovery. The profits go to Sallie Mae.

The corporate lawyers who conceived this self-enriching system ought to get the nation's top prize for shameless perversity.

Shameless perversity! The holy rollers who have taken complete control of this government say they talk to God, that the non-rich "don't share their values", and tell us underfunded schools need to be held accountable. And just a minor footnote on their "values" - for the first time in my life - torture, eavesdropping, sado-masochism, prostitution, money-laundering, national fraud in a multiplicity of critical areas, cover-ups, political paybacks, kickbacks, and back-stabbing, the destruction of a major American city including neighboring suburbs in three states... I am likely to exhaust myself naming the sins, high crimes, perversions, and witless incompetence that so naturally and casually has become business as ususal in the Bush theocracy.

And gutter bureaucrats like Rob Simmons have no problem with any of it except that it has an outside chance of hurting their election chances.

Voters reinforce the idea that schools are turning out idiots. Just look at the national election results. Stupid is as stupid does. The kids don't deserve this.

Why Mom and Pop can't afford Education

As I look at "fixed" raises built into teacher's and non-certified personnel's contracts, I can't help but think the guaranteed raises are a thing of the past. This may be the last generation of teachers to ever see such generous increases in their lifetimes.

Here's what the rest of America is suffering from already (from the Washington Post);

Will Your Job Survive?

By Harold Meyerson
Wednesday, March 22, 2006; Page A21

The threat of globalization and the reality of de-unionization have combined to make the raise, for most Americans, a thing of the past. Between 2001 and 2004, median household income inched up by a meager 1.6 percent, even as productivity was expanding at a robust 11.7 percent. The broadly shared prosperity that characterized our economy in the three decades following World War II is now dead as a dodo.

Also dying, if not yet also kaput, is the comforting notion that a good education is the best defense against the ravages of globalization -- or, as Bill Clinton famously put it: What you earn is the result of what you learn. A study last year by economists J. Bradford Jensen of the Institute for International Economics and Lori Kletzer of the University of California at Santa Cruz demonstrates that it's the more highly skilled service-sector workers who are likely to have tradable jobs. And according to the Bureau of Labor Statistics, the proportion of jobs in the United States that require a college degree will rise by a measly one percentage point -- from 26.9 percent in 2002 to 27.9 percent in 2012 -- during this decade.

Since education as such won't save us, Blinder recommends a kind of particularized vocational ed. We will have to specialize more, he writes, "in the delivery of services where personal presence is either imperative or highly beneficial. Thus, the U.S. workforce of the future will likely have more divorce lawyers and fewer attorneys who write routine contracts." Now, there's a prospect to galvanize a nation.

My own sense (which I develop at greater length in the April issue of the American Prospect) is that nothing short of a radical reordering of our economy will suffice if we're to save our beleaguered middle-class majority. Every other advanced economy -- certainly, those of the Europeans and the Japanese -- has a conscious strategy to keep its most highly skilled jobs at home. We have none; American capitalism, dominated by our financial sector, is uniquely wedded to disaggregating companies, thwarting unionization campaigns and offshoring work in a ceaseless campaign to impress investors that it has found the cheapest labor imaginable.

CABE's Big Adventure - Republicans RAISE your local taxes

Representatives from the Connecticut Association of Boards of Education (CABE) recently went to Washington, D.C. Their newsletter says they attended the National School Boards Association's Federal Relations Network Conference and then met with Connecticut's Congressional delegation.

Cabe's newsletter lists the failures of the federal government to fund their chronic spending without paying habits. For the past thirty years (approximately how long the Republicans have controlled, um, government), the federal government has simply not paid the 40% of special education costs accrued for legislation initiatives they passed.

Fuel, transoportation, and lots of other pricey items needing financial relief were discussed as well.

So the Congressional "staff" went into action and on the last day tthat the school boards were in Washington they were rewarded with the fruits of their labor, the president's budget, "not only fails to meet these needs, but contains the largest cut to federal education funding in the 26 year history of the Department of Education: $2.1 Billion. If enacted, this would be a 3.8 percent cut from the FT06 level."!!!!!

Oh, the cuts don't stop there either, CABE lists another $28.95 BILLION in education shortfalls and cuts. The upside is a $225 Million increase in neo-con sinkholes.

So how much is a $30 BILLION ADDITIONAL SHORTFALL in federal education funding? Um, about 3 months of spending in Iraq. Come to think of it, read the article and the increase in military spending in Iraq is almost exactly the dollar amount being taken from education! Put that on Sesame Street, Count Dracula!

But it doesn't stop there - no sir - these are the Bush years - if the ship is sinking then it's time to start drilling holes to let the water out.

On page 2 of the CABE Journal, president Robert Hale offers a Commentary on the CABE Meetings in Washington. In it he tap dances around the uncomfortable fact that, well, "For the most part our senators and representatives are responsive"... but... "somewhere out there are local board memberswho know their individual senator and/or congressman. We need to know who you are..."

Let me translate this into English. About a year ago, a union representative told me a story about trying to meet a legislator in Washington. He said that after days of being treated like short shrift his delegation finally pin-pointed the representative. They approached the staff about getting the promised meeting because they knew the congressperson was in.

The staff relented, "Step right this way.", into a small conference room. My friend who trailed the union delegation had not yet turned the corner to join his group when he watched the legislatior slip out a side door and RUN down the hall away from the citizens. They wound up meeting with the Congressional Skippy's who serve coffee smile and treat you like a mentally ill patient looking for directions to the Lincoln Memorial.

Somehow CABE and all the other BOEs got snookered. Hale can put as much lipstick on Rob Simmons, Joe Lieberman and others as he likes but what these so-called representatives are doing ain't pretty.

At the local levels we struggle to pay for all this. If we continue to be dumb enough to empower these bastards in Washington we deserve what we get - higher taxes from Washington disguised as tax relief.

Rather than beg strangers for access to our officials I have a better idea. Let's ask Attorney General Blumenthal issue a warrant for their arrest for child neglect - that's right a class action warrant for neglecting the children of Connecticut. And the only bail that will spring them is a face-to-face meeting with every BOE in the State of CT. I want to tell them a few things using a bullhorn.

But it seems to me that every CT politician who even thinks about voting on education legislation needs to have the common sense of calling the President of CABE and the President of the Teachers Union well in advance of voting on anything that affects children. For CABE to be begging for spam access to government officials is a humiliating admission that government has gone wrong in a big way.

Washington's neo-Molochs

Human beings have an inalienable right to invent themselves; when that right is pre-empted it is called brain-washing.

- Germaine Greer

The freedom to share one’s insights and judgments verbally or in writing is, just like the freedom to think, a holy and inalienable right of humanity that, as a universal human right, is above all the rights of princes.

- Carl Friedrich Bahrdt

Education in America has become an exercise in political indoctrination. The Orwellian, pretzel-logic of slogans such as "No Child Left Behind" mask much darker political agendas. America has turned schools into torture chambers - cabinets for the Dr. Caligari's of the political right to experiment on our children as though they were nothing more than lab rats.

Would any adult submit themselves to an employer who regularly raised the bar on their production or efforts? Or maybe the employer is unsatisfied with your last review - you'll need to be watched and cajoled and given special attention. Yes, we have ways of dealing with you - all in the name of goodness.

Why do our military come back time and time again for hundreds of billions of funding to 'win' wars that don't exist? The bar for them is never raised. Congress never says, "We expect more with less!" No, that's not what happens.

Has corruption, mismanagement, and ubiquitous political sleaze drained last year's budget? Poor things. Here's another half trillion to tide you over until you get it right.

Meanwhile, to our schools...

I attend school board budget meetings that would make any caring citizen cry. The schools fall further and further behind technologically, educationally, and psychologically. Nowhere are state or fedreral tax dollars to be found for the sake of our children - Alaska needs another sleazy tax windfall. And Rob Simmons is all for GOOD THINGS - "You go, eastern Connecticut! I'm [RIGHT] behind you! [except when the vote counts]"

How can schools improve education when there is no desire to improve education. The LAW MANDATES UBIQUITOUS, WORTHLESS, TESTING and failure to comply, to pass, to coerce, to deface each student into a uniform widget may cost administrators, teachers, others their jobs.

And it is all a FOOL's errand. Wealthy communities always are nearly perfect, less wealthy communities are always on the cusp, poor communities are always on a treadmill to catch-up. This is worse than a wasteland. This is factory of broken souls. A treadmill for school officials and teachers commanded to give Sysiphus a coffee break.

The wealthy communities believe their children are perfect, that their schools are the best, that their Stepford Lives are predictably predictable and eternally right.

The less wealthy are in constant stress and distress. Here a circular firing squad of elderly voters, parents, administrators, budget committees, political hacks, malicious lunatics, petty tyrants, and interested parties, good-willed citizens, anti-tax lobbyists, retro-luddites, and a cacophony of citizens holding their bags of broken political promises apply lipstick to a starving pig and pass it off as a healthy speciment. And in their spare time they wound each other with friendly fire.

Worse, in the urban centers, where children are shot at in their daily lives, minorities plead with their children to conform - don't make noise, sit up, don't make the oligarchy mad, pretend you don't exist and maybe, just maybe, we'll get through this day. The dementia of relentless violence and hard drugs precludes education. This is social triage that is ineffective and politcally unconscionable.

Children have inalienable selves [rights to become] to whom inalienable political rights are systematically being ripped away without the benefit of an anesthesia. "Kindness" and "mercy" are words long absent from the religious vernaculars that have delivered us TO this evil state of affairs.

When do we rid ourselves of this criminal legislation and begin to reclaim our children as unique individuals, schools as places to learn as best students can learn?

When?

Jimmy Carter on local autonomy and fiscal responsibility:

If you read only one editorial piece this week make it the LA Times pice by Jimmy Carter. He speaks eloquently for all of us who are concerned with the health and choices our country is making.

This isn't the real America
By Jimmy Carter

"IN RECENT YEARS, I have become increasingly concerned by a host of radical government policies that now threaten many basic principles espoused by all previous administrations, Democratic and Republican.

These include the rudimentary American commitment to peace, economic and social justice, civil liberties, our environment and human rights.

Also endangered are our historic commitments to providing citizens with truthful information, treating dissenting voices and beliefs with respect, state and local autonomy and fiscal responsibility."

Carter goes on to mention national issues but this is a clarion call to regional activists and administrators to begin investigating ways to restore local control away from a federal administration gone mad.

We need no more federal education mandates.

The same politicians who lost the war on poverty and drugs, who botched education reform, fiscal responsibility, FEMA and Homeland Security and so on need to shut up and get out of the driver's seat or hand everyone a travel sickness bag. We've seen and heard enough to know we can do better locally. They should have never been promoted and they are an embarassment to children who are taught to depend on government for fair and effective policy.

We all know they won't willfully go away so it is the responsibility of students, teachers, parents, and citizens to remind them of what we expect and we should settle for nothing less than the finest example of democacy, justice, and hope we can offer each other and the world as a nation.

If kids and parents are going to be deafened by lectures from politicians about accountability and responsibility then turnabout is fair play.