Thursday, August 26, 2010

Spending on athletics in public universities: need for a lemon law!

In 2008-09, university support accounted for more than half of the $4 million athletic budget this past year, reaching $2.2 million from just less than $900,000 in 2006.
This news item wouldn't matter if it were a report on a private university.  But, at the taxpayer supported institution that is also my employer?

I don't want my tax dollars to be spent  wasted this way, when students at the same university pay the highest per-credit tuition rate in the system--even more than at the research universities!  And, when there is very little on the horizon to suggest that the state's economic picture will get better any time soon.

So, why all these expenses anyway?
Since moving from NAIA to NCAA Division II in 2000, Western Oregon University has been adjusting to the economic realities of competing at a higher level.More money was needed for scholarships, travel and increased investment in facilities, such as the new Health and Wellness Center opening this year, that will relocate the football team from the Old PE Building on campus.
Well, wouldn't it have made economic sense then to have stayed in NAIA and, therefore, not have incurred all these additional expenses?  "It's elementary, my dear Watson."

To a large extent, universities--yes, academics, too, and not merely athletics--reflect decision-making and resource allocations that result from information asymmetry as best illustrated through the lemons (defective cars) sold, which is also why we have lemon laws.  In contrast to the automobile consumer market, however, the public has no clue about the defects in the lemons here--higher education--and has to pay whatever the asking price is, and is stuck with the purchased product.  In case the public has questions, the people who can clarify that are also from, guess what, higher education. ...  

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