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Accounting metrics prompt state universities to raise tuition fees
The lack of diversified income streams adds to the financial pressures on higher education institutions, forcing them to rely even more heavily on tuition fees.
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North Sumatra University (USU) students throng the rector's office on May 20, 2024, to question the planned tuition fee increase. (Antara/Handout)
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n the lead up to the new academic year, several state universities announced significant increases in tuition fees. This sparked widespread outrage among students and their parents because the higher fees disproportionately affect low-income families.
In response, the government suspended the tuition rise. But this decision has raised a bigger concern about what motivates financial decisions at state universities.
At the core of this issue lies the adoption of accounting metrics. Public management reforms in the early 2000s introduced performance measurements for government agencies, including state universities. These institutions' performance is now evaluated using a variety of accounting metrics, such as revenue and efficiency.
While they aim to improve quality and accountability, this move has profound implications for access to education.
State universities are encouraged to boost their revenues. Given the constraints of classroom and faculty availability, the straightforward approach is to raise tuition fees to achieve the high revenue target.
In contrast, student facilities often suffer neglect under the guise of efficiency. Maintenance costs have been artificially suppressed for years. The notion of efficiency is usually employed to bolster financial surpluses, resulting in cost-cutting measures. Under New Public Management doctrines, the focus on efficiency and cost-cutting often undermines public value.
In recent years, the government has introduced autonomous governance for state universities. This model grants the universities greater autonomy, allowing them to manage their own budgets and determine tuition fees. The model aimed to enhance the quality of education and research while reducing dependency on government support.
