A dramatic increase in government support and more direct assistance to students from nonprofit university foundations could make higher education more affordable for families in Iowa.
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Iowa’s three public universities have two main sources of income: government funding and tuition.
When the first goes down, the second goes up. And the first has declined significantly over the past few decades.
The Iowa Legislature allocated $ 63 million less to government institutions in 2021 than it did in 2001. Forget about the inflation adjustment. This is a decrease in dollars. As the cost of everything from energy to health care increased, more students enrolled in college, and the total state budget doubled in two decades, lawmakers actually reduced the amounts of money that went to our public universities.
The starvation continues today.
In the last legislative term, the Council of Regency proposed an increase in state funds by just $ 18 million for fiscal 2022 and reinstatement of $ 8 million that had been cut in fiscal 2021.
The GOP-controlled legislature responded by passing a bill that froze state funds.
Translation: We don’t care about public higher education or Iowa families looking for it as the path to a better future.
This brings us to tuition fees, the second main source of income for schools.
The Board of Regents is proposing a further increase in tuition fees – about $ 280 at the University of Iowa and Iowa State and $ 115 at the University of Northern Iowa.
A few hundred dollars keep adding up to higher tuition fees for which students are responsible. Many have no choice but to borrow money. According to The Institute for College Access & Success, the average student loan debt for graduates from Iowa colleges and universities was $ 30,259 in 2019.
Graduates begin their lives after college by paying (or failing to pay) student loans. So did young people who borrowed money and dropped out of school. The bills are also due for parents and grandparents who have borrowed or co-signed an education loan for their loved ones.
Iowa needs to break this painful cycle of increasingly priceless public education that is holding people back from school and adding debt to those who do so.
The cycle can be broken if Iowans ask.
Voters should pressure state lawmakers and Governor Kim Reynolds to dramatically increase funding for our public universities. By dramatic, we mean $ 100 million or more annually in additional support. An investment in our public schools is an investment in innovation, life-saving research, economic development, and future generations of Iowans.
Legislators should fund financial aid intended exclusively for students attending regent institutions. The vast majority of government-funded needs-based assistance – almost 80% – goes to students attending private schools. Iowa ranks last among all states for the percentage of that aid to students attending public schools.
Heads of State should reconsider the role of tax-exempt university foundations that raise funds for schools. While universities are begging for $ 26 million at the Statehouse, the University of Iowa and Iowa State University fundraising organizations have nearly $ 3 billion in assets.
That’s a billion with a b.
The President of the UI Foundation receives more than $ 500,000 annually. Spend on nonprofit tax forms reflects millions of dollars spent each year on staff development, mail advertising, magazine printing, professional fundraising fees, and travel.
Somehow, more money from foundations should be used to subsidize tuition fees for more students and lower the cost of attending college. While these nonprofits must adhere to federal lobbying regulations, they can do more to educate lawmakers about how reduced government support harms our public schools and residents.
Iowa needs to change course. It needs to get back to its roots – to the days when we realized college wasn’t just about helping individuals get better jobs. It was about creating a better educated population that we can all benefit from.
Tax forms provide foundation salaries, expenses
University foundations are tax-exempt not-for-profit organizations that are required to file a Form 990 annually with the Internal Revenue Service. Some organizations make these documents available on their websites. The public can also use third-party service providers such as Guidestar to view the forms. A 990 provides information on top salaries, expenses, investment income and assets. The editors used documents from the tax year from 2018, as these were available for all three university foundations.
The State University of Iowa Foundation, formerly known as the University of Iowa Foundation, reported $ 1.52 billion in net worth. Annual expenses included $ 883,355 on professional fundraising services and $ 804,394 on advertising and promotions. Reportable compensation for President Lynette Marshall was $ 537,600.
The Iowa State University Foundation reports assets of $ 1.22 billion. Annual expenses included $ 600,687 for conferences, conventions, and meetings, and $ 748,678 for travel. The total compensation for President and CEO of Larissa Holtmyer Jones was $ 410,752.
The University of Northern Iowa Foundation reports assets of $ 1.56 million. Annual expenses included $ 399,335 on professional fundraising services and $ 625,491 on travel. Reportable compensation for former President Lisa Baronio (through December 2018) was $ 240,624.
This editorial is the opinion of the Des Moines Register Editorial Committee: Carol Hunter, Editor-in-Chief; Lucas Grundmeier, opinion editor; Andie Dominick, editorial writer; and Richard Doak and Rox Laird, members of the editorial committee.
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source https://collegeeducationnewsllc.com/iowa-must-break-the-cycle-of-higher-education-unaffordability/
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