Cost Accounting at a Research University
by Charles Schwartz, UC Berkeley
My previous study on this topic, with the title, “The Cost of Undergraduate Education at the University of California – Improved Calculation”, was posted in late 2007 at http://socrates.berkeley.edu/~schwrtz/recost.html. It concluded that the current level of mandatory fees for resident undergraduate students is very close to 100% of the University’s actual expenditure for undergraduate education, averaged per student. In contrast, University officials said that student fees covered 30% of the cost of education.
New results reported here, for the year 2011-12, show University expenditures of:
$1.296 Billion for Undergraduate Education = $6,910 average cost per student; and
$2.117 Billion for Faculty Research (unsponsored) and related Graduate Programs.
The mandatory fee level for resident undergraduate students was $13,181, which is nearly twice what it cost the University to provide their education. In this paper, I shall review the method used before, then go through the steps with the latest input data. At the end is a critical discussion of the implications of these financial facts, including an indictment of the University leadership for their dishonesty.
The full paper is posted at http://socrates.berkeley.edu/~schwrtz/Part_22.html