Quantcast
Channel: SEIU Local 615 » Higher Ed
Viewing all articles
Browse latest Browse all 3

Should For-Profit Schools Be Open to More Scrutiny than Non-Profits?

0
0

By Wayne Langley, Director of the Higher Education Division at Local 615

Massachusetts Attorney General Martha Coakley is investigating American Career Institute, which suddenly shut down its schools in the Bay State earlier this year, as noted in the Boston Globe. Other for-profit schools, like DeVry and Kaplan have also recently been in the news and come under closer scrutiny.  Cities like Milwaukee are seeking to limit city money for colleges like those operated there by Corinthian Colleges, Inc 

Oversight is important, especially when public money is invested, as is the case with for-profit colleges that charge high tuition backed by federal student loans. So-called “non-profits” – both public and private colleges also receive public money through their tax-exempt status, as well as through Pell grants, earmarks, access to low-interest public bonds, engaging in joint ventures and holding patents and copyrights for discoveries paid for by the taxpayers. Additionally, taxpayers often pick up the cost of health insurance if colleges use non-union labor.

This year, students and workers will campaign for improved conditions at dozens of colleges and universities throughout New England.

Non-profit public and private colleges deserve no less scrutiny than for-profit colleges, especially when their tax-exemptions amount to millions of dollars a year. Non-profit universities are subsidized with federal, state and local dollars. The public has a right to know how much the public is investing in these schools and what public benefits we are getting in return for our investment.

While colleges and universities act as major employers and engines of regional economic growth, in challenging economic times, it is more important than ever that public resources be well spent. As cited in a Tellus Institute Report commissioned by SEIU Local 615 last year, Northeastern University, for example received $181.7 million in public support for the 2011 fiscal year.

Public subsidies, rising tuition and crushing debt demand a greater amount of accountability from colleges and universities, which is why SEIU Local 615 is once again supporting bills (HD2305 and SD790) that call for financial transparency in Massachusetts higher education institutes.

The bills, sponsored this session by Senator Patricia Jehlen and Representative Michael J. Moran, would amend “An Act to establish tax transparency and strengthen the reporting requirements of public charities” to include public charities that are private colleges and universities operating in the Commonwealth. They would require colleges to disclose the names of anyone paid more than $250,000 per year, as well as disclose investments greater than $10 million.

For more information, please contact me at wlangley@seiu615.org

 

 


Viewing all articles
Browse latest Browse all 3

Latest Images

Trending Articles





Latest Images