We're worried about the potential for massive unemployment, right? Most estimates put it at 8% unemployment next year, with more dire predictions pegging it at up to 15%.
The problem of unemployment might be especially bad among young people, many of whom have no experience or past skills to market, just potential. Worse still, with unemployment comes crime.
That's why I propose as part of stimulus that the federal government make community college enrollment free for the next 2 years and subsidize state universities; in exchange we ask these schools to increase enrollments and create buzz in their local communities spurring students to go to college to get an AA or BS or MS degree.
How much will this cost? Let's figure that out...
::: ::: Step 1 ::: :::
For two years the federal government should subsidize state universities and community colleges. These schools should be asked to increase their enrollment by up to 50%. In exchange the federal government will pay for all community college tuition for two years and for all state university tuition for students who have financial need under existing criteria for financial need; that is, if a student were to qualify for even $1 of need-based tuition grants today, their tuition would be fully covered for those two years.
The virtue of making college free for two years also has the added benefit of spurring students who might not otherwise attend to finally get their degrees - knowing that it's a limited time offer will push them to finally take the plunge. We can also encourage the not-so-young who have lost their jobs to go back to college.
To accommodate the fact that not all those interested will be able to join a college or university at the same time, the free 2 years of college should allow a 1 year starting grace period. That is, all students that are enrolled or that begin enrollment between March 2009 and March 2010 will receive 2 years of free tuition from the date they opt in to the program.
::: ::: Step 2 ::: :::
State universities should be given additional funding for science and engineering programs; in exchange, we should mandate increases in their enrollment in science and engineering. If green energy is to be a vehicle to restart our economy, we need more students trained in science and engineering.
::: ::: Step 3 ::: :::
To plan for the eventual transition out of the 2 year free tuition period, 1% of all funds for this program should be set aside for establishing work-study programs so that students who begin a 4-year degree under this program will be able to pay for their education even after the two years are up.
::: ::: Cost ::: :::
In 2006, the average community college / commuter school cost $2300 per year in tuition and fees. In 2004, the US Census estimates pegged the number of college students nationwide at 15.9 million.
That means that subsidizing $2300 per year of every student's tuition would cost $37 billion - a far cry from the $700 billion figure that's often discussed for stimulus. However, that's funding for existing numbers; let's assume that we'll have closer to 20 million students. Two years of subsidies at that enrollment level would cost $92 billion.
It's difficult to estimate how much it would cost us to pay for state university tuitions for those with financial need vs. community college, but it is likely not far off from the above estimate. (Only a subset of students would qualify for financial-need based tuition grants at state universities, but the cost per student will be higher.)
::: ::: Conclusion ::: :::
While zero unemployment may be a bit of hyperbole, we can drastically decrease unemployment and give people the skills and education that will help them get better jobs in the coming years.
TAKE ACTION: Click here to contact your representative.
Give them a call and tell them that you want the economic stimulus package to provide funding for two years of free community college and fully subsidized need-based state university tuition. (If nobody picks up, leave a message!) Tell them that we need state universities to increase science and engineering enrollment to go along with the free 2 years of college. Contact them Now.