The Impact Of Budget Cuts On Educational Institutions And Its Economic Effects

There was a time when America’s education system was top-notch according to the culture and society. With time, a myriad of things has changed, but unfortunately what has not evolved is the American education system. The country is still following a system which was not designed for the current global economic climate. Equality, as positive as it sounds is not as sufficient when it comes to education. The system treats students equally yet expect a similar culmination and outcome. Every child has his individuality and distinct abilities; one cannot judge a fish by its ability to climb a tree. Conversely, a few of the prominent reasons why the education system is failing are overcrowded schools, the rise of technology, and following the same old school hours.

The United States needs to look to other nations that have figured out the necessity of higher education to be at an affordable cost if not free. In 2015, college graduates are facing on average just north of $35,000 in student debt (Berman). In part, the government has reduced the federal funding that each college receives each year. Therefore, colleges have constantly raised the

The education system in America has a long history of struggle and change, as we have grown as a nation we have experienced an ever-increasing rise in diversity. This diversity has caused rigidities between groups and all stratus of society and has been a major impact in debates concerning the educational opportunities in America.

Funding for Oklahoma schools has fallen dramatically in recent years, with Oklahoma spending $706 less per student in inflation-adjusted dollars that it did in 2008, and Oklahomans are worried about it, and rightly so (Gene, 1). In looking toward a quick-fix, many have argued that Oklahoma need only reduce its administrative costs, thus

The topic of this paper is the states’ decreasing financial support of higher education, the reaction and response from institutions who have lost funding, and the creative ways public institutions are locating additional streams of revenue. States have been the primary backer of public institutions, but since the recession states have shown less commitment financially while still heavily regulating higher education. As a result some institutions have had to change their practices while others have challenged their state’s regulations all together. Many have speculated that state funding may never return to its former highs. Rather than make an enemy of the state, some schools have discovered new and unconvential ways of raising funds for their institution.

Since 1974, tuition has been on the rise and has reached new heights. One reason why tuition is increasing is because of “the state governments’ unwillingness or inability to raise per-student financing” (Davidson). The government is spending less on college and moving those funds into other categories, such as the military. Furthermore, colleges are spending less on each student than they did during pre-recession (Fox). Even after the recession, the government is continuously cutting more and more from education funds. As the government cuts more from education funds, tuition cost will steadily increase to compensate the loss. Tuition increased from 1994 to 2015 is depicted in the graph on the next page. Drawing a conclusion from the graph, it is possible that if this trend continues, public colleges will approximately reach the same price as private colleges one day. The amount of financial aid given is unable to meet the needs of lower income students,

The National Conference of State Legislatures said, “School budget crunches have been a trend over the past couple years and span the entire nation” (qtd. in Van

Although 2010 was not by definition, a recession year, it certainly felt like one. The growth of the economy was stifled, unemployment was stagnated at a little less than ten percent and interest rates and inflation were at near depression levels by year’s end. The state of the economy unequivocally influences tax collections and budgets, which in turn determines the financial prosperity of higher education, especially in the public sector. The two main sources of revenue for public colleges and universities are state appropriations and tuition. Generally, as cuts to higher education appropriations occur, campuses respond by boosting tuitions even higher. Yet, regardless of the size of the budget cuts, college and university tuitions

College debt has risen significantly since “The Great Recession” in 2009. Due to the high college fees, students are faced with lifelong debt. If the rise continues, only the rich will be able to obtain a higher education, resulting in American education to take several steps backwards instead of improving. Although many have tried to fix college debt problem, it has mostly gone unnoticed. Specifically targeting the nation’s youth, college debt is destroying the chances of the lasting effects on the economy from fully recovering.

The presidential race is now consuming America. It is mentioned every morning in the news and in every “scroll” through social media. While important topics such a national security, national debt, and international affairs are brought up constantly in the debate spotlight, higher education is a topic less discussed. However, each presidential candidate has a specific, strategic plan to tackle current issues in higher education. The main issue that candidates believe should be addressed includes college costs and how they impact student debt. Each candidate has a different stance on the issue, and each have a plan to move toward solving the issue. This review will cover the current issue of student debt and how that is impacting America, each presidential candidates strategic plan to tackle this issue, a critique of each presidential candidate’s plan, and a reflection of solutions presented. Each candidate running for the 2016 presidency deserves full recognition, this review will focus on the two leading presidential candidates: Hillary Clinton and Donald Trump.

Crippling student debt is stifling the growth of the United States economy because it inhibits graduates from being able to spend money on consumer goods and home purchases. One of the biggest decisions every high school graduate has to face comes at the time of applying to college. Deciding to go, and where to, is going to have a big impact on the student life, and in most cases a big factor for this is money. As an effect of that concern student loans were developed. For many students going to college in the U.S. comes with a very important economic decision.

Christopher Newfield’s "The View From 2020: How Universities Came Back" breaks down the reasons for why the American universities are in a cycle of increasing student tuition and debt. By deconstructing the causes, Newfield provides readers a way to grasp the seriousness of student debt that is usually seen as intangible thus encouraging a call to action to change the structure of the education system. The subject of education is extremely relevant with the current presidential election coming up and the fact that California is the 7th largest economy and is educating 80% of the US college students (Newfield 2011).

The cost of tuition for higher education is quickly rising. Over half of college freshmen show some concern with how to pay for college. This is the highest this number has been since 1971 (Marill and O’Leary 64-66, 93). The amount of college graduate debt has been rapidly increasing also. With limited jobs available because of the high unemployment rate, college graduates find themselves staying in debt even longer. Although grants and financial aid are available to students, students still struggle to pay for their college tuition. Higher education costs are prohibitively expensive because the state’s revenue is low, the unemployment rate is high, and graduates cannot pay off their student loans.

Budget cuts in schools cause turmoil and stress among the students and faculty. Drastic changes in the budgets have caused schools to negatively impact the people around them. With the lack of funding, schools are facing difficult decisions on what to do to stay within their budget. Supervision is facing much scrutiny on how to handle the lack of funding in their school districts. A solution needs to be made to improve the distribution of funding to our schools in order to keep them operating and thriving for our children to obtain their education. Budget cuts in schools have shown negative effects on employee positions, supplies, extracurricular activities.

The increasing cost of higher education in the United States has been a continuing topic for debate in recent decades. American society emphasizes the importance of education after high school, yet the cost of undergraduate and advanced degrees continually rises at a greater rate than inflation. According to the Advisory Committee on Student Financial Assistance, cost factors prevent 48% of college-qualified high school graduates from pursuing further education (McKeon, 2004, p. 45). The current system requires the majority of students to accumulate extensive debt with the expectation that they gain lucrative post-graduate employment to repay their loans.