Posts Tagged “immigration”
There has always been a historic tension between America’s colleges and universities and the government, whether at the state or federal level. It’s unavoidable. Once the government began to fund students and institutions in the late 20th century, its leaders believed that they had a right and responsibility to oversee the use of those government funds.
Priorities: Protect Funding & Tax-Exempt Status, Fight Excessive Regulation
For most of the national trade associations representing higher education, three goals emerged. The first was to protect the level of state and federal support that higher education received from them. The second was to preserve and safeguard fundamental underpinnings like the tax-exempt status of colleges and universities. And finally, the third was to monitor and argue against excessive regulation.
As government discretionary spending decreased — with debt repayment levels rising and deficit financing the order of the day — state and federal spending became increasingly less stable. Today, America governs at the federal level by Continuing Resolution, careening from one deadline to the next. At the state level, annual budget deadlines are seldom met unless mandated by state law.
In a world of last-minute, lobbyist-infused backroom deals, it’s impossible to plan accurately and consistently on most college campuses. You never quite know how the cards will play out.
In recent years, most in the higher education leadership have worried that, in the absence of discretion, the federal government will turn increasingly to regulation. The Obama years provide numerous examples to justify such concern. Further, the government seems to be in a never-ending dance over the reauthorization of the Higher Education Act, further complicating higher education’s relationship with an important partner.
Trump Policies and Actions Heighten Higher Education’s Sense of Alarm
Since last year’s presidential election, many have slightly shifted their concern about the federal role in government. There seem to be a number of forces at work within the government that have heightened a sense of alarm.
The first is that higher education does not seem to have the champions that it used to in the federal executive and legislative branches.
To illustrate, the passage of the new tax bill was problematic. Two examples show why. Proponents suggested a tax on graduate scholarships that ultimately did not make it into the final draft of the bill. The effect would have been disastrous for graduate and professional education. Second, earlier tax bill drafts called for a tax on the country’s largest endowments, reportedly to encourage better use of endowment spending.
Let’s set aside the obvious question about why a government that cannot govern or budget effectively is a necessary and sufficient monitor of higher education spending. In the end, it is what it is.
Active Effort by Trump Administration to Diminish Higher Education
The second is that there appears to be an active effort – in rhetoric and action — by President Trump and his supporters to diminish the stature of American higher education. Leaders of America’s major research universities have agreed among themselves to take more active public positions in an effort to counter souring public perceptions of higher education. Without a coordinated plan – and the support of their trustees and campus communities – there is likely to be a limit on whether their efforts will work.
Immigration Actions Mean Fewer International Students
The third is that “America first” policies on immigration have a deleterious effect on many colleges and universities. America is the global leader in providing high quality education at any level. It attracts the best and brightest from around the world.
The impact of quota policies – and the impressions created of them and held by international students and their families – diminishes the talent pool within the American workforce. It also decreases foreign tuition payments, the ability to sustain a global campus, and the intellectual exchanges necessary to keep the next great ideas coming.
In an American workforce approaching full employment, the need for more workers – and the best educated among them graduating from American colleges and universities – will be a growing problem if a strong economy holds.
These shifting concerns suggest a growing need to be aware of shifting emphases in the relationship between higher education and the government. They raise legitimate questions:
- Will the government at the state and federal levels continue to be a steady, reliable and consistent funder of higher education?
- Does the government still see higher education as integral to its sense of commonwealth?
- Lacking discretion, will the government turn to a stringent regulatory environment to enforce its political goals, however inconsistent they appear to be?
Higher education would be well advised to have clear policy goals as we move forward. It must also look for ways to work with Congress and the Trump Administration to safeguard and advance its goals.
But the days of concerns over money, taxes, and regulation levels are gone. While we can hope for the best, the willingness of the president to use executive action to change the regulatory environment is something that we are free to ignore at our own peril.
It’s hard to imagine how deeply the policies of the Trump Administration will affect America’s colleges and universities. As a group, these institutions are already undergoing substantial disruption.
The old financial models under which most of higher education operate no longer work. The current path for many of them is not sustainable. Many institutions face rising costs, deeper financial aid discounts, and dismal demographics.
From Taxes to Immigration, Federal Policies are Hammering Higher Ed
This is a time when enlightened state and federal policy could make an important difference, resetting the balance that would offer breathing space for colleges trying to handle disruption. Policies could even provide new opportunities for the most innovative institutions, those who are using disruption to become more sustainable over the long term.
Drawn from different arenas, four policy directions illustrate how the wrong federal initiatives can wreak havoc on the American educational community.
Federal immigration policy: Immigration changes, proposed or underway, have two important and debilitating effects on American higher education. First, the drop in foreign student applications cuts off a supply of the “best and brightest” global students into American universities. On a graduate and professional level, such policies diminish the pool of qualified professionals who add diversity and depth to the applicant base and form a pool of potential subsequent hires. Fewer international students decreases the revenue available to colleges and universities whose financial models depend on full-pay students to offset the deep financial aid discounting now heavily practiced on most campuses.
Tax on endowments: On its surface, the proposed tax on endowments may seem noble. Federal officials want to make the money more available to offset high tuition sticker prices by forcing the wealthiest colleges and universities to increase scholarships to students. The problem is, of course, that many of these institutions already have the most enlightened and generous financial aid policies. An endowment tax would penalize these schools for being successful at using fundraising and endowment investments to support their existing scholarship aid and funding the resources and offerings that make them such attractive institutions.
The argument makes no sense. Generally, an endowment must make some amount above its annual spend down and the rate of inflation in order to grow at a reasonable speed — perhaps somewhere around seven percent today.
What happens in the years when the endowment returns falls below the break-even rate as it has most years recently (and sometimes quite dramatically)? Further, what is the incentive for colleges and universities to build their endowments with private support to a point where they subject their efforts to additional federal taxes?
Finally, how much would the proposed endowment tax actually contribute back to the U.S. Treasury? Is it deficit reduction or politics at play? It’s not so much that 50-100 colleges are affected — out of about 4,700 schools nationwide — it’s more a question of why? Is the endowment tax an example of government policy determined by anecdote and polling?
Tax on graduate tuition waivers: Does it make any sense to tax scholarship money? If not, then why does the Republicans’ proposed tax bill include a tax on graduate tuition waivers? Much of the existing student debt about which politicians complain is acquired when students earn graduate and professional degrees. Why increase their debt burdens?
Elimination of tax deduction for interest on student loans: Under the current tax code, students save as much as $2,500 annually via the deduction on student loan interest. While only the House tax proposal contained this provision, there is always a danger that mischief can occur in conference deliberations. Politicians on both sides of the aisle have identified student debt burdens as an area of significant and growing economic concern. Why pass legislation that will make the situation worse?
In previous years’ tax and higher education funding bills, colleges and universities worried about the level of funding for student grants and loans like the Pell Grant and the Perkins Loan Program. They diligently watched any effort to impinge on their tax-exempt status. And they took active positions on issues of daily concerns, like the burden of state and federal regulations.
But this year’s legislative proposals are substantively different. Federal policies are beginning to intrude into who and how we educate our students, where we draw our students from, and how colleges can continue to make themselves affordable.
It has long been assumed that given declining discretionary ability, the federal government would increasingly turn to regulation to enforce its policies. But now, the efforts seem more directed at reshaping our cultural environment through policies that cut across race, nationality, and wealth.
College and university leaders need to watch the tax bill’s conference deliberations closely. It’s a confusing and troubling time as we watch politics, money, and cultural preferences collide in the name of tax reform.
In post-industrial America, the roles played by large nonprofits – especially its hospitals and universities – power the economic engines in many regional economies. What would cities like San Francisco, Philadelphia, Pittsburgh, and Boston look like without their large educational and medical research complexes? Would other cities, such as Houston, Chicago, Los Angeles, Austin, and Washington, DC, be as vibrant without the diversification made possible by these important economic drivers?
The facts are clear. America may – or may not – regain some of its manufacturing capacity, although this re-growth is likely to be infused with a level of technology certain to assure that what develops is not likely to be your grandfather’s auto assembly line. America may develop energy policies that re-open coal mines even as newer, alternative sources of power move forward to increasingly dominate the energy landscape.
But the future of the American economy is to prepare and lead a global economy. The alternative is to be lost in a political quagmire that will lessen America’s impact and influence on the rest of the world.
Whether you like NAFTA or the Trans Pacific Partnership really doesn’t matter in the end. What matters is that the boat has long since sailed on whether we live and work in a global economy. The relevant questions are how will we be transformed by it? And, which countries will lead it?
Higher Education and Medical Research Are Economic Engines
The heart of the post-industrial economy arguably is the education and medical research complexes that fuel our regional economies. From these pulsing economic engines emerge spin-offs created by entrepreneurs who transform – and effectively recreate — the American economy. Together with small business, they shape the direction of American society, often from the ground up.
President Eisenhower once warned Americans about the dangers of the military-industrial complex. It was an important admonition that has continued relevance in a transforming America. Rules and protocols – matched by common sense and good will – must continue to shape the political, cultural, and economic relationships between politics and the economy.
Trump Administration Proposals’ Troubling Impact on Higher Ed
That’s why two of the Trump Administrations proposed policies, in particular, are deeply troubling. It doesn’t matter whether these policies are part of a first-year executive policy and budget request that is likely “dead on arrival.” They show a predisposition by the executive branch that speaks more to ideology than cost.
The first is the much discussed travel ban, part of a larger discussion about the role that immigrants have and will play in the history of the United States. The future of the travel ban will likely be settled by the courts, but there are some early trends that bear close scrutiny.
According to Inside Higher Education (IHE), “Four in ten colleges are seeing drops in applications from international students amid pervasive concerns that the political climate might keep them away.” For many years now, US colleges have benefited from steady increases in applications from international students. As students, they often pay full tuition and fees, providing a valuable revenue stream for these institutions.
Travel Ban Already Hurting International Applications
IHE’s Elizabeth Redden writes, “the highest reported declines involved applications from the Middle East. Thirty-nine percent of universities reported declines in undergraduate applications from the Middle East, while 31 percent reported declines in graduate applications. Fall enrollment numbers from the region will likely be hard hit by President Trump’s executive order.” Higher education officials find similar trends in China and India, which account for nearly half of the international students in the United States.
Do we really want international students to go elsewhere? Shouldn’t the next great innovations in America come from a global workforce educated here that stays here because Americans – whether native born or naturalized – create a climate that encourages and supports global innovation developed by the best and brightest from across the globe?
Trump Budget Proposal Will Stifle Innovation & Growth
The second problematic proposal, the Administration’s budget blueprint, compounds the first. In a statement on the proposed budget, Mary Sue Coleman, president of the American Association of Universities, was blunt: “This budget proposal would cripple American innovation and economic growth. The President’s FY18 budget proposes deep cuts to vital scientific research at the National Institutes of Health, Department of Energy, NASA, NOAA, and other critical scientific agencies.”
Coleman argues that the budget proposal “would lead to a U.S. innovation deficit, as it comes at a time when China and other economic competitors continue their investment surge in research and higher education. For decades, federal investments in these areas have paid enormous dividends in medical advancements, new technologies, and enhanced national security, and helped to produce high-wage American jobs and the most talented workforce in the world.”
If we accept the premise that America’s nonprofit education and medical centers power the economic engines that fuel the most promising contributors to American economic growth, does it make any sense to damage these global institutions, perhaps irreparably?
In the end, it’s not a “guns versus no butter” decision to favor military buildups over domestic discretionary spending. It’s about labor, capital, partnerships, and investment. At its most fundamental, “it’s the economy, stupid.” Let’s not muck it up.
Thirty years ago, we all understood what the term “culture wars” meant. It was about Mapplethorpe vs. Helms and teaching old, dead, white men vs. revisionist and black history. There were lines. Whichever side you were on, you knew where you stood.
The battle lines changed and have morphed into something quite different today. As the first efforts by the Trump Administration to enact an immigration ban sputtered in chaos, confusion and a “must see TV” legal battle, the implications of the fight over how to provide national security have become clear. So, too, did the historical precedents that informed this newest battle.
It turns out that the new culture wars are also social, economic, and political in nature.
The new battle lines are between visions of American society that are industrial vs. post-industrial in outlook, design, and practice.
Historical Perspectives on Economic Battle Lines
What’s most interesting is that these new lines mirror the pitched battles over industrialization in the early 19th century, especially in England, as machinery replaced manpower in textile production, especially weaving. The warriors then were craftsmen, rooted in an agricultural society, who saw their traditions and way of life threatened by the mechanization of their livelihoods.
The protesters – the Luddites – were English textile workers and independent craftsmen who destroyed weaving machinery to protest the mechanization of textile production. They were fearful that years spent learning their craft were wasted and that unskilled workers would take their place. Eventually, the military suppressed the Luddite movement. England became the world’s leading industrial power throughout much of the 19th century.
Two hundred years later, the parallels persist as America moved from an industrial to a post-industrial economy. Workers in the manufacturing sector have seen their jobs disappear and wages stagnate as income inequality has continued to rise for over twenty years, despite some recent upticks. The presumed culprit is cheaper overseas labor, principally identified as Mexican and Chinese. The Luddites of 19th century industrial England have become the “America first” nationalists of 21st century America.
Globalization and National Security Concerns Interwoven
Symbolized by the debate over renegotiating NAFTA and abandoning the Trans Pacific Partnership, it has become a battle to stem the tide over “free trade” globalization cloaked in concerns about national security. Internally, the battle lines are also cultural, on issues like Planned Parenthood, immigration and refugees, and Supreme Court picks. The philosophies behind these competing claims are decoded into a broader national debate about “American values.”
For the moment, the effect is to split the country almost uniformly, depending upon the crisis de jour. Practically, there is a political dimension with the red and blue states recast, within limits, as “nationalists” and “globalists,” respectively. The problem with the rhetoric today is that people will get hurt. It’s probably where the large crowds protesting immigration policies can do the most good, however, especially if they can humanize the negative impact of “America first” policies.
“Eds and Meds” are Economic Engines
There is another danger, already recognized in cities like Boston, New York, Seattle, Washington, and San Francisco. These are the “eds and meds” capitals of the country whose economies are in each case bigger than those of most countries with which America competes. They are the booming economic engines of the US economy. It’s why the Silicon Valley’s biggest technology players have joined together to speak against the immigration ban.
The stakes are high. How American higher education plays its hand could set the United States on a path that will shape its ability to compete.
To this end, it’s important to have clear strategic goals in mind. Here are some first thoughts:
Higher Education Must Choose Battles Wisely
Build a strategy out of the initial tactical responses that have occurred in response to the early policy initiatives of the Trump administration. Protests are fine – critical, in fact – but choose the battles wisely. America’s leading educators should speak out on policies that affect higher education, linking what they say to social, cultural, and political concerns about American values. Their campuses must be prepared to support them, particularly if they focus on the issues and stay out of the politics.
Higher Ed Must Be Broadly Inclusive
America’s colleges and universities must remove what can sometimes be seen as legitimate criticism and become more tolerant of ideas, including those with which they and their college communities disagree. They must practice what they preach on how best to be broadly inclusive.
Higher Ed Must be Leader in Post-Industrial Economy
“It’s the economy stupid.” American workers list job security as their principal worry. In a world in which “do no damage” should be a primary operating principle, it is dangerous for the American economy to power down, for example, because of knee-jerk immigration policies. We need the best and the brightest with us. But we also need a Manhattan Project version of a Tennessee Valley Authority initiative to move the Rust Belt mindset forward.
The goal is a growing economy to build a robust middle class across the country. America signaled that globalization would undergird the world economy when Bill Clinton signed on to NAFTA.
The trick now will be for leaders – including those who run American colleges and universities – to help America prepare to lead a post-industrial economy.
It will require sane, reasoned debate. Let us begin.