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How will the proposed auto crises/bailout affect Michigan education?
By Donna Gundle-Krieg written for Examiner.com
November 18, 2008
Will education in Michigan be affected by the current automobile crises/proposed bailout??
I will get emotional about this subject, so please forgive me for my passion. Both my husband and I were born and raised in metropolitan Detroit, and we have raised our two children here, too. We plan to retire in Michigan, as do most of our friends and extended family. We love this beautiful state, and can’t believe the misperceptions others have as it is an absolutely wonderful place to live.
Of course I am concerned about the failure of the automobile industry. I live a few short miles from General Motors Proving Grounds in Milford. A good percentage of my neighbors work for one of the Big Three.
On the other hand, I am a Libertarian and think that government bailouts and government in general should be very limited to nonexistent. For more analysis on that, see the story below: "Should we bail out the U.S. auto industry?
Back to education, the purpose of this story. How will education in Michigan be affected by what happens to the automobile industry?
I am going to touch on three aspects of this question: the teachers’ union, school funding, and enrollment in Michigan colleges.
1) Teacher’s union: I’m just throwing this out there, but if the auto workers’ union goes down, the teachers’ union should be nervous. Union membership in all unions has already been declining steadily in Michigan over the past decade. On the other hand, a more union friendly government was elected a few weeks ago. See “Michigan teachers’ union happy with election results.”
2) How will school funding in Michigan be affected by a crises in the automobile industry?
Keeping up enrollment is a big part of public school funding, as most of the school funding in the districts come from a “per student” allowance given to the districts by the state. Initially, enrollment at the public schools shouldn’t be affected much by any crises, because the public schools are free. They may even gain students that the private schools will lose.
Sure, some people may move out of the state, which may impact enrollment. However, it’s hard to say who will move. Many people won’t be able to sell their houses, and there really aren’t a lot of jobs in other states, either. Long term, of course, if the economy doesn’t improve, the state of Michigan may have to adjust its budget and give the districts less money per pupil.
Private schools are another matter. You would think that they would lose students in an economic downturn. Ironically, though, my daughter’s all girls’ Catholic school had a record attendance number at Open House last week. There is also another new girls’ Catholic school being built in the western suburbs this summer.
There are still people in Michigan who have money. This is evident when you try to park at Twelve Oaks Mall or get into any of the restaurants in the northwestern suburbs on a weekend.
3) Last but not least, see "Enrollment up at local colleges, universities" published in the Oakland Press.
More people are realizing the value of an education as the manufacturing jobs fade away. Undergraduate enrollment in Michigan colleges is up, and community college enrollment is thriving. Many are choosing the community college option for their first two years, and then transferring their credits to the more expensive universities.
On the other hand, graduate enrollment at Michigan universities is down. This is possibly because those in graduate schools are often financed by a company’s tuition reimbursement program, and many corporations are cutting these benefits.
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Enrollment up at local colleges, universities
Sunday, November 16, 2008 12:37 AM EST
Michigan may be experiencing slumps in many
areas, but higher education is not one of them.
For many area universities and colleges, overall student enrollment rising.
As Oakland University expands, the school has continued to gain more
students, and is at a high of 18,169. “We are really well-positioned to
attract students,” said Mary Beth Snyder, vice president for Student Affairs
and Enrollment Management at OU. “In this economy, they are sticking close
to home.”
Now, students who qualify for awards are
eligible for four years, instead of the first year only.“When families are
looking about the affordability of college, they can plan right up front for
X number of dollars for four years,” Snyder said.
While the undergraduate programs continue to attract more students, OU has
lost some graduate students. At the same time last year, there were 14,090
undergraduates enrolled. This year, there are 14,397, for an increase of
about 2.1 percent.At the same time last year, however, there were 3,992
graduate students enrolled but only 3,772 this year, a 5.5 percent decrease.
Many attributed the decrease to the auto companies, which have stopped
giving students tuition reimbursement. "That’s had a definite impact at
Oakland,” Snyder said, adding that business, engineering and education
master’s degree programs have been hit hardest.
At Lawrence Technological University, the same trend is occurring on a
larger scale. Lisa Kujawa, the assistant provost for enrollment services at
Lawrence Technological University, said more than 500 of the school’s
graduate students have been affected by tuition reimbursement cuts.
“In a normal time period when the economy is bad, then the colleges reap the
benefits because students want to retool,” Kujawa said. “But right now, it’s
a different time because they need a job.”The school has tried to
accommodate the students — many of whom were just a few credits shy of a
degree — by offering immediate discounts and no-interest loans. “It’s our
belief that we have to help them,” she said, adding that the school’s Web
site also has a link to help registrants with financial aid issues.
Many of the colleges and universities also are teaming up with local
community colleges so that students can transfer to a four-year institution
easier.“With the rise in cost, it’s a good option to go to community college
and then transfer to a place like Walsh,” said John Lichtenberg, chief
marketing and enrollment officer at Walsh College.The school has seen a
slight increase in overall enrollment and is up about 100 students.
Lawrence Tech also has worked with Oakland Community College with curriculum
to help transfer students make an easier transition.The school has seen an
increase in transfer students between 7 and 10 percent; OU was at 10.4
percent.
For universities like OU, the school is planning for additional enrollment
increases in the years to come.
“We are growing,” Snyder said. “We are strategically trying to get
(students) outside of the tri-county.”
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Should we bailout the U.S. auto industry?
by D.C. Policy Examiner Joseph Hight
Should we bailout the U.S. auto industry?
This is a tough one. I wish I could duck the question, but as an economist interested in public policy, I need to take a stand. So here goes.
Yes. Too much is at stake, too many lost jobs – one estimate is 2.5 million lost jobs in 2009 - if there were a 50 percent reduction in U.S. auto maker production.
In an economy with a 6.5 percent unemployment rate and rising, it is too great a risk for the government to sit idly by while an additional 2.5 million jobs disappear. But a bailout needs to be fashioned with care, so that the competitiveness of the U.S. auto industry is improved over the long term.
First, we must use part of the $700 billion bailout package to provide bridge loans to enable the auto companies to meet current expenses in order for them to avoid bankruptcy, but only on the condition that auto company management and the United Auto Worker leadership agree to meet with the top government officials, both in the executive branch and in Congress to fashion a strategy for a restructuring of the industry.
And here is the deal that will need to be struck. The UAW will need to get its members to accept substantial cuts in pay and benefits – far better than no job at all. The government will need to pass a national health care plan for the nation that will also relieve the auto makers of a substantial part of its cost for health care to its workers and retirees. And the government will need to pursue a policy of stabilizing gas prices using the gasoline tax, first keeping gas prices at the pump from rising until we get through the current crisis, but gradually increasing them over time and keeping them stable by varying the gas tax, so as to encourage consumers to want fuel efficient autos. Then the auto companies can count on and plan for an increasing demand for such vehicles, without being seesawed by wild swings in gas prices.
That is the deal that will have to be struck, and there must be teeth in the agreement so all parties stick to it.
Otherwise, let the industry go. Let’s suffer the consequences now, because if such a deal is not made, America will lose the industry anyway. We will still get automobiles, but they won’t be made by American companies. And we will recover from the lost jobs, but only after we go through an awful bout of misery and despair.
Stories by Donna Gundle-Krieg:
Education in the United States
Books With Stories by Donna Gundle-Krieg
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Michigan Death Notices home page
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