Washington University is one of the most elite universities in the world and very few places have such a large concentration of brilliant minds in such a small place. Because of this, the cost of maintaining our university is quite high. A very effective but not well known indicator of a university’s financial position is the percentage of operating costs which are covered by tuition and which are covered by the endowment.

According to the 2003-04 Annual Report, the University spent about $750 million in instruction, $50 million in student services, and $100 million in academic support. Tuition accounted for just under $200 million in revenue, and “auxiliary enterprises” like housing, dining and parking services brought in $50 million. These figures aren’t limited to undergraduate students, but they roughly translate to four dollars spent by the university on students for every dollar students pay.

For the academic year of 2005-06, the cost of attending our university will be $42,796, which includes $31,000 for tuition with the remainder going to housing, food and various student fees. Undergraduate tuition rose $1,400 from last year, a 4.7 percent increase. Comparably, tuition at Harvard rose 5.15 percent for 2004-2005 and tuition at both Stanford and Yale rose 4.5 percent for the 2004-2005 year.

Admittedly, consumer prices rose faster than most workers’ wages did in 2004, with overall inflation measured at around 3.7 percent, the highest since 2000. The University did a better job at controlling prices than other colleges, however: the College Board reported that the average increase for tuition and fees at a four-year private university was six percent; four-year public universities averaged increases of a whopping 10.5 percent.

When faced with the bleak reality of rising operating costs, the tuition hike is referred to as a “necessary evil.” This way of thinking is defeatist and does not address the root of the problem. Universities aren’t traditional businesses, and they don’t act like them. Businesses must do everything in their power to prevent price increases to stay competitive in the market, but universities have customers essentially committed for four years. Perhaps the University ought to model itself more like businesses to quash its “tax and spend” mentality.

This does not mean, however, that it should outsource non-academic employees to companies that refuse to pay benefits to their workers and deport them to their native countries when they become too burdensome. There are ways to cut costs while being socially responsible.

If Student Union can benefit from an internal audit by a professional consulting firm, why can’t the University? The excuse of “rising costs,” “convenience” and “overhead” should not appease students any longer. Somewhere in the University there are costs that could be trimmed, money that could be saved. The University should take the lead and set an example for other universities to follow by hiring an auditing firm to take stock of how it operates and to come up with suggestions for how the University can operate more efficiently and with less wasteful spending.

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