Sen. Lamar Alexander (R-Tenn.) outlined a plan on Thursday that would take steps to prevent the federal government from hindering state efforts to develop innovative approaches to higher education.
Alexander, the ranking member of the Senate Health, Education, Labor and Pensions Committee, said the federal financial aid system is too complex, there are too many federal regulations on research and unfunded Medicaid mandates absorb state education dollars, according to a press release.
“We all agree that that we should strive to have more Americans with a college degree,” Alexander said. “But we should keep in mind that in achieving that, the federal government plays a limited role. States must lead the way: three out of four undergraduate students attend public two- or four-year institutions that are governed by states and receive substantial state funding.”
Alexander said the federal government invests more than $30 billion in student grants each year, yet it remains a minority investor in higher education.
“The former president of Stanford said it cost seven percent of their budget to comply with all of the regulations, the current president of Stanford was by this week and he said that, according to a March 2014 National Science Board Study, 42 percent of a principal investigator’s time is spent on administrative matters,” Alexander said. “That’s probably twice the amount it ought to be – that’s billions of dollars wasted.”
With the federal government issuing approximately $30 billion in federal research dollars, Alexander said, reducing administrative costs would lead to “a lot of extra money for research.” He also said that unfunded Medicaid mandates now account for approximately 30 percent of state budgets – up from approximately eight percent 30 years ago.
“The stimulus law made that worse, the healthcare law made that worse,” Alexander said. “Federal strings are well-intentioned, but the unintended consequence is higher tuition and higher costs for states.”