New Investments for a ‘Changing Financial Landscape’

This summer, the Pew Charitable Trusts published a report that got my attention. The report, Federal and State Funding of Higher Education: A Changing Landscape, broke down the numbers and found that as state funding continues to dwindle, federal support has increased. This is a crucial shift in the financing model for public education, with tremendous implications for the Colin Powell School, its students, and the future of public education.

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Vince Boudreau, Deanby Vince Boudreau, Dean, Colin Powell School for Civic and Global Leadership

This summer, the Pew Charitable Trusts published a report that got my attention. The report, Federal and State Funding of Higher Education: A Changing Landscape, broke down the numbers and found that as state funding continues to dwindle, federal support has increased. This is a crucial shift in the financing model for public education, with tremendous implications for the Colin Powell School, its students, and the future of public education.

While state contributions typically show up as support for specific institutions, federal dollars generally arrive as grants, loans, and tax relief to individual students. Historically, state aid to institutions accounted for the lion’s share of public funding to colleges like The City College of New York. But in recent years, shifts in funding profiles made state and federal contributions to education more equal. Hence, even as we bemoan the drop in state support for our campus—in the past five years, state funds fell from 48 percent of our operating budget to just about 30 percent as of this year— the hidden story has been that federal dollars have been rising at just about the same rate. On our books, they show up as tuition revenue rather than public support—but the amount of public monies devoted to higher education have remained more stable than an exclusive focus on state contributions suggest.

Continue reading “New Investments for a ‘Changing Financial Landscape’”

Get Your Guns: The Negative Network Effect

In the wake of the tragic mass shootings on a college campus in Roseburg, Oregon, President Obama and others have called for stricter gun control laws. Yet others, including many close to where the shootings took place, are saying increasingly that they feel they need to own a gun. (See, for example, the recent front page story in The New York Times, “Common Response After Killings in Oregon: ‘I Want to Have a Gun’.”) The dramatic tension between President Obama’s gun control advocacy and others’ calls for greater access to guns relates to a phenomenon I identified in a 2011 article in the Journal of Industrial Economics entitled, “Negative Externalities, Competition, and Consumer Choice.” I called the phenomenon “negative network effects.”

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by Matthew Nagler, Associate Professor, Department of Economics and Business, Colin Powell School

In the wake of the tragic mass shootings on a college campus in Roseburg, Oregon, President Obama and others have called for stricter gun control laws. Yet others, including many close to where the shootings took place, are saying increasingly that they feel they need to own a gun. (See, for example, the recent front page story in The New York Times, “Common Response After Killings in Oregon: ‘I Want to Have a Gun’.”) The dramatic tension between President Obama’s gun control advocacy and others’ calls for greater access to guns relates to a phenomenon I identified in a 2011 article in the Journal of Industrial Economics entitled, “Negative Externalities, Competition, and Consumer Choice.” I called the phenomenon “negative network effects.” Continue reading “Get Your Guns: The Negative Network Effect”