Category: Education


Corporate College Presidents and Super-Sized Endowments

Yesterday The New York Times had two articles that left me thinking about university endowments. One discussed the increased Congressional pressure on charitable institutions to spend down their endowments; the other noted the soaring salaries of college presidents. Combined, the articles highlight the need to challenge conventional thinking about what constitutes a strong endowment.

The Times reports that in the last 10 years, the amount of assets held by non-profits has nearly doubled, to $2.5 trillion by the end of 2005. Educational institutions held almost $600 billion. (If nothing else, employees deciding whether to enroll in TIAA-CREF should take note of what compounding interest and tax-free gains can yield!) Private foundations are required to spend 5% of their assets each year; educational institutions are not subject to even this minimal requirement.

Grinnell College, with 1500 students and an endowment of over $1 billion, was highlighted in the Times article. Russell Osgood, Grinnell’s president, points out that Grinnell gave about $1 million more in financial aid than it received in revenue from tuition and fees. He also says,“We’re here to ensure the long-term health and function of Grinnell College. That’s our sole objective.” But the Times does not quote Osgood as explaining why more than $1 billion is necessary to protect a small liberal arts college against an economic downturn. Rather, Osgood says:

Society at large benefits from those monies being invested in our economy. . . . The United States has a problem with its rate of savings, and one of the few bright spots are colleges and universities, which are two of the largest contributors to the national rate of savings. Anyone thinking about reducing endowments should think long and hard about what that might do to the overall ability to generate jobs and fund good ideas.

Maybe, although no-one is suggesting that universities empty their coffers. And the national savings rate is what not alumni were thinking about when they wrote checks to their alma mater, or what Congress was considering when it extended favorable tax treatment to educational institutions and their donors.

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Did you ever notice that law school hiring seems to aim for not-all-that-diverse diversity? It reminds me of a friend who claims to love Thai food and then orders everything “extra mild.” Does he like Thai food (as in embrace it) or does he simply embrace the idea of liking Thai food? It’s like the question I often ask my classes: Can you have a preference for a preference?

How is this like faculty hiring for diversity? My, admittedly unofficial, view is that when hiring committees look for candidates the pecking order is like this:

White elite eduated male

White elite ed. female

African American ed. elite male

African Americna ed. elite female

White non elite female

White non elite male

African American non elite female

African American non elite female

The ranking is, no surprise, consistent with social comfort and, let’s face it, given that there is no evidence that one group is better at law teaching than another and that law professors can “interpret” resumes to mean anything, social comfort plays a big role.

So, do law professors on average like the idea of embracing diversity or do they really embrace diversity? I think it’s the former and it’s not even close. They have a preference for a preference for diversity but the real preference is just not there.

So how would you recruit for actually diversity? No question in my mind that race is a big factor but how about these questions:

1. What was your father or mother’s occupation?

2. How much school did your father and mother complete?

3. How much student debt have you accumulated?

4. How many people do you know at an Ivy League school?

5. Ever worked at McDonalds, washed cars, or bagged groceries?

6. Anyone in your family on welfare.

7. Has anyone in your family done time?

8. Ever been out of the US?

9. What is the difference between rigatoni and zitti? (oops, sorry this one accidently came over from a completely different list)

When and if law faculties get serious about diversity, let me know.


Announcing Deanship Opening

We are seeking applicants for the position of Dean. The applicants should have some administrative experience although a prior deanship is not required. Some but not exceptional scholarly productivity is a requirement. Among the attributes that will be examined is the ability to work well with others. More specifically:

1. The dean should generally say yes to all faculty requests no matter how absurd.

2. The dean should not ask faculty to fill holes in the curriculum on a temporary basis.

3. The dean should make use of liberal summer research grants without expecting immediate – or any – results.

4. The dean should prepare massive glossy publications publicizing the scholarship of the faculty in lieu of actually requiring the production of scholarship.

5. Classes should not be scheduled on Monday or Friday or any day before 10:00 AM.

6. The deans should avoid controversy by shifting difficult issues to faculty committees, ignoring issues in hopes they will go away, or by redefining the issue

7. The dean should listen to no one except those on the faculty who he or she believes could influence the future of his or her deanship.

8. The dean should first and always think about the welfare of the faculty over that of the students.

The Search Committee is aware that there are many highly qualified decanal candidates and ask that interested applicants submit their resumes as soon as possible.


Law School Capture

My blogging schitk is grousing about legal education. I do this mainly on moneylaw and classsbias and serve as a technical advisor to privilegelaw – a blog that must be read starting earlier and moving to more recent. In many respects I think legal education has been captured by and run for the convenience of faculty who are far more often than not the children of privilege. (If you are already preparing to comment, I ask that you skip it if the comment is about a law professor who is not a child of privilege.) As I blog along this month these themes will become more developed. First, here is a test to examine your own school for its level of capture.

Before taking the test there are some clarifications. There is good and bad capture. I can imagine a law school captured by the faculty and, with or without help from the administration, run for the benefit of stakeholders. This would be faculty that is constantly asking “What should we be doing”? and matching it against what it is doing. On the other hand, capture can mean that a faculty runs the law school for its convenience with only modest limitations imposed by others and even here observing the limits are part of a pattern of self-interested behavior.

Second, from time to time I get an email that carries with it the assumption that all my grousing is about my own School. Wrong! The examples are not all taken from my School, and if you really called my bluff I would not bet that my school is any different than the average. So how does your school stack up on the capture quiz: (you can give your school partial points)

1. Are classes scheduled mid week and mid day even though it means conflicts that limit student choices? (1 point for a yes.)

2. Has you school seriously reviewed any of its foreign programs, centers, institutes or degree programs in the past two years? (1 point for a no.)

3. Does your school depend on adjuncts to teach mainline courses while offering small enrollment specialized courses taught by full time profs? (1 point for a yes)

4. Does your school have a high curve that is sometimes defended by not wanting to hurt the feelings of the students or other justifications that amount to “I do not want to actually have to evaluate someone?” (1 point for a yes)

5. Do colleagues propose programs that are needed even though they will not actually be teaching, traveling, or receiving a reduced teaching load if the program is adopted? (1 point for a no)

6. Can students graduate and take half or more of their classes on a pass/fail basis. (See question 4) (1 point for a yes)

7. Does your school encourage massive, barely supervised, externships that generate tuition dollars, provide free labor and, by the way, mean less teaching ? (1 point for a yes).

8. Does your administration mass mail glossy reports listing every conceivable thing faculty submit as reportable? (1 point for a yes).

9. Does your dean appear to be afraid to suggest that the School should do better and then hold people accountable? (1 point for a yes)

10. Is the norm that just about everyone is gone by 11 AM on Friday? (1 point for a yes)

If you scored a 10, it’s best to go into receivership and start from scratch.

If you are in the 7-9 range you will probably be a 10 soon.

If you are 4-6, I think you are average and a few hires could move you either way.

If you are 3 or less, congratulations.


Shunning Duke’s Faculty

listening_statement_p.jpgA little while back, former Judge, and law school Dean, Joseph Bellacosa (St. John’s) proposed that members of the public shun the 88 Duke faculty members who sponsored an advertisement in the early days of the Nifong investigation implicitly condemning the accused lacrosse players. Bellacosa argued that

[A]lthough the group [of faculty members] can’t technically be charged with crimes – though abandoning your young and endangering youth sure do come close to real definable crimes – there are ways these professors can be held accountable. The identities of the 88 professors should be posted in significant ways and places, including in the media and on the Internet, so that they may be known for what they have done.

The likely howls of protest from the tenure police, university guild apologists and free-speech absolutists notwithstanding, the professoriat should not be shielded from appropriate public condemnation for their misconduct. Their dormant consciences and sensibilities should be reawakened to the abhorrent nature of the actions they inflicted on their own students.

I am regrettably late commenting on Judge Bellacosa’s article, and so this post may be stale. But still. What the heck is going on here?

Finding the original ad put up in 2006 isn’t so easy. A follow-up statement by Concerned Duke Faculty member has dead links, and Duke’s African-American studies department has removed the page from its server. Fortunately, this blog post pdf’d the ad, which I’ve copied to the right. Unfortunately, Bellacosa doesn’t say, and I don’t understand, exactly what was so wrong about this statement. There are some rumors that the students whose voices are being spotlighted are composites. That would be bad, but not a deadly sin. And the heart of the ad – the statement by the professors themselves – seems to me to consist of a set of vague generalities that verge on truisms, and aren’t objectionable:

“Regardless of the results of the police investigation, what is apparent everyday now is the anger and fear of many students who know themselves to be objects of racism and sexism, who see illuminated in this moment’s extraordinary spotlight what they live with everyday.”

Regardless, we’re supposed to shame and shun the signatories to the ad. Why?

Three Views of Education as an Associative Good

The Posner-Becker blog had a good discussion of education rankings 2 months ago. I was particularly struck by Posner’s observations on the self-fulfilling prophecy aspect of rankings:

The effect of college ranking on the education industry is unclear, but my guess is that it is negative. . . .Given the high costs of actually evaluating colleges, employers and even the admissions committees of professional and graduate schools are likely to give weight to a school’s rank, and this will give applicants an incentive to apply to the highest-ranking school that they have a chance of being admitted to (if they can afford it). The result will be to increase the school’s rank, because SAT scores and other measures of the quality of admitted students are an important factor in a college’s ranking. That increase in turn will attract still better applicants, which may result in a further boost in the school’s rank. The result may be that a school will attract a quality of student, and attain a rank, that is disproportionate to the quality of its teaching program.

Henry Hansmann wrote an interesting piece on this phenomenon, calling education an “associative good,” since, “when choosing which producer to patronize, a consumer is interested not just in the quality and price of the firm’s products, but also in the personal characteristics of the firm’s other customers” (emphasis added). Hansmann concludes by wondering if “the increasing technological sophistication of our society, which is fueling the trend toward stratification among the elite educational institutions, will someday produce technologies that make it less important for elite higher education to be a residential experience, and hence remove much of the associative character of higher education.” Franklin Snyder offers evidence that blogging is one such technology.

But don’t underestimate dominant interests’ passion for rankings, cautions McKenzie Wark (whose bookpage for the source I’m quoting interestingly fails to mention it was published by Harvard University Press). He claims that “Education is organized as a prestige market, in which a few scarce qualifications provide entree to the highest paid work, and everything else arranges itself in a pyramid of prestige and price below. Scarcity infects the subject with desire for education as a thing that confers a magic ability to gain a ‘salary’ with which to acquire still more things.” In other words, the rankings are the purest form of artificial scarcity. . . . a precious commodity in an era when the diminishing scarcity of resources that meet basic needs limits their contribution to economic growth. Wark worries that education will “split[] into a minimal system meant to teach servility to the poorest workers and a competitive system offering the brighter workers a way up the slippery slope to security and consumption.”

I’ll expressly disclaim endorsement of any of these three theories. I just find it interesting how the staid and sober observations of a Posner can resonate with Wark’s radical theory, once we interpose the “associative goods” concept.


Greetings, Salutations, and Current Events Questions on Exams

Greetings, everyone, and thanks to Dan, Dave, and the rest of the Concur-ers for the invite to spend some time guesting over here (and for the warm introduction). I guess, if nothing else, my guest stint will provide some anecdotal data about just how many blog-readers read both Concurring Opinions and PrawfsBlawg, my permanent home…

Anyway, I thought I’d start with a practical question: Whether, and to what extent, folks think that is a good idea to put current-events-based questions on a final exam? Borrowing (shamelessly) from my soon-to-be-former colleague Michael Froomkin, my con law final exam included a Morrison v. Olson-based question about the Office of the Special Counsel (for details on the issue, see Michael’s posts here and especially here).

Leaving aside the merits of this particular question, it strikes me that we as profs have a temptation to write current events-based questions, both because reading the news triggers our own intellectual curiosity, and because it’s a way to keep the substance “fresh” from year-to-year. But are there reasons not to? I consider a couple below the fold:

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Fiduciary Duty and Financial Aid


The financial aid scandal, sparked by NY Attorney General Andrew Cuomo’s investigation (and possibly a shut-out competitor) has already led to some settlements with lenders and universities. The basic thrust of Cuomo’s investigation is that if lenders pay administrators referral fees (whether direct or indirect) to steer students to take certain loans, that conduct is a deceptive trade practice, “in violation of New York Executive Law ‘ 63(12) and General Business Law 349 and 350 and other relevant state law.”

Universities are falling over themselves to settle with NY, as is the lending industry, in light of some bad facts: the companies have sought to influence financial aid administrators with stock, Broadway tickets, and other goodies. So this question is, literally, academic: is the alleged conduct by the university employees a violation of a fiduciary duty (loyalty) owed to students?

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Politics and Alumni at Dartmouth

Today’s Boston Globe carried an interesting story about an upcoming board of trustees election at Dartmouth College. According to the story, the upcoming election has become a heated battle over direction of the university. On one side is the alumni council, which nominates candidates for open seats on the board. On the other is a group of alumni dissatisfied with the university’s direction, a group that is apparently willing to spend tens of thousands of dollars to nominate and elect their own candidates to the board.

This year’s independent candidate, Professor Stephen Smith of U. Virginia Law School, says he is running to support smaller classes and stronger athletic teams. One of his opponents, San Diego Padres executive Sandy Alderson (an attorney himself as well as a former Marine sergeant), claims that Smith is the hand-picked candidate of “a well-funded, disciplined political organization” with a conservative political agenda. Alderson claims that he was interviewed by two other independent trustees with conservative ties who concluded that they couldn’t support him. Smith, for his part, asks “”What is conservative about class size or athletics?” while acknowledging that alumni donations have funded the $60,000 he has spent on mailings for his campaign.

The story closes with a quote from Peter Robinson, one of the independently elected Dartmouth trustees. Addressing all colleges and universities, he says, “”The alumni are coming. But they won’t sack your institutions, just reconnect them with American life.”