More Public Universities are Going Private

The University of Michigan is considering going private, says
the Mackinac Center, a move that is expected to save taxpayer
dollars and retain highly qualified professors.

Other states have already considered or enacted similar measures:

o South Carolina has given all 13 of its public universities
permission to go private.

o Colorado is planning to privatize its 4 public
universities by 2009.

According to researchers, privatizing the University of Michigan
would save taxpayers $320 million per year, plus millions more in
construction costs. Some argue that total privatization would make
college unaffordable for many. However, observers say:

o Over half of the university’s freshman class comes from
families with annual incomes over $100,000 per year.

o Tuition increases could help low-income students by
allowing administrators to set aside more gift aid and
discount tuition for them.

o The university could sell its hospital, valued at about
$600 million, while the Nursing and Kinesiology schools
could continue to be taxpayer funded.

Moreover, privatization would likely enable the university to
attract more professionals and prestigious research. Indeed,
the University of Michigan, ranked 8th by U.S. News and World
Report in 1987, currently ranks 25th.

Source: Lance Wieslak and Michael LaFaive, “Privatize the
University of Michigan,” Viewpoint on Public Issues, Mackinac
Center for Public Policy, March 1, 2004.

For text:
http://www.mackinac.org/article.asp?ID=6313

For more on Privatization
http://www.ncpa.org/iss/pri/