Breaking the Small Business Code

The Brick Walls Keeping Education from Improving

    US News & World Report's Education Blog has a GREAT blog article on how the eduation "community" received President Obama's proposals for improving education. The differing opinions on what he said and what needs to be done is sadly another example of why it will be so difficult to improve education in America.

    To refresh your recollection, President Obama said he wants the United States to have the highest proportion of college graduates in the world by 2020 and asked every American to complete a year or more of college or career training. He talked about the need for more reform in education and said he wants to reward teacher performance and grow the number of charter schools. He also talked about providing ore financial support from pre-school through college.

    Sadly, as usual, the "education community" was NOT pulling together. As usual the entrenched interests looked at their position and as the comments of the various "experts" show - they are all going in different directions.

    I am becoming so frustrated that I voiced my opinion in the comments section!  To read the article AND my comments, go to the On Education Blog Comment Section.  Then add your own comments there or here!

Is The Idea of Need-Based Aid Flawed?

     An article in the February 21st New York Times focused on the infamous FAFSA - Free Application for Student Aid - the gateway form for getting money for college.  The story focused on how terrifying, confusing and frustrating completing the form has become.  As with just about everything associated with college, the views of the people interviewed show that change is not going to happen anytime soon.

    In my opinion - and the opinion of many others involved in helping families pay for college - the basic premise of need-based financial aid is flawed. Therefore, the system designed to measure the need and then determine how to meet that need is flawed! 

    What is that flawed premise? 

     The idea is that (a) everyone should have access to college regardless of ability to pay and (b) if you cannot afford the cost of a particular college, the "system" should fill in the gap between what you can afford and what it costs. 

      This premise sets up the need to detemine how much you should pay based on your financial situation called the Expected Family Contribution (EFC).  That means someone has to decide how to measure your ability to pay (EFC) and then set some value or percentage that you should pay before getting outside help.

     This also sets up the assumption that someone else will fill in your gap between cost of attendance (COA) and your EFC.  That "someone" starts with the government (Federal and State) and then the individual college. What has happened is the need gap is NOT being filled.  For too many families, the FAFSA has simply become a loan application!

    I have several students with ZERO EFC getting nothing but Federal loans. The get the maximum in loans, grants and work-study but still cannot get close enough to the cost to make college affordable.  Unless a college meets 100% of need for all admitted students, families will face gaps as severe as before the premise of need-based aid!

    So before we discuss changing the FAFSA, how about revisiting the ENTIRE concept of paying for college!  Your comments?

   

Cutting College Costs - A Fable that is not so Fictional

    As the financial markets and tax revenues tumble, states like California are making steep cuts to education including cuts to the support for state-run colleges like the University of California (UC) and the California State Universities (CSU). The budget that will be signed today imposes a 10 percent across-the-board cut to the UCs and CSUs, saving $264.4 million.

    California is not alone. Massachussetts is planning 11.6 percent in cuts for their state colleges. Florida is starting at 4 percent but more cuts are planned. New York state is cutting between 6 and 7 percent. Google the phrase "xxx budget cuts to colleges" and insert your state for xxx and you'll see what you are facing.

    This means college administrators will soon be living the fable presented by John Lombardi of Louisiana State University at his blog "Reality Check" called "Budget Crisis, Academic Change:A Fable"!

    I STRONGLY recommend that everyone who cares about higher education - both inside and outside the education "industry" - read Lombardi's blog.  How you react to the story will help you understand why there is no clear path to making colleges more accountable and affordable!  Politics, political correctness, turf wars, protectionism, etc., etc., keeps the colleges stuck where they are. 

    What do you think is going to be cut by the all these colleges?  What do you think should be done? What sacrifices/changes can be made?  One thing for sure, aid will go down, class size will go up, space for new students will go down, services will go down, and tuition will go up!

   As the daughter of a college dean, I understand the desire to protect and provide resources that serve more intangible needs like obscure languages, art and music. But when your children are starving, having a Monet on the wall is probably NOT the best use of your resources.

    This brings me back to my question to the social media universe - "What is College For"?  What should we focus on in these times? What should money be spent on?

   

  

MBA and Jobs - Part 2

    I just read another article on how MBAs are having their visions of "corporate jets" crushed by the realities of the economy. One of the trends Business Week reports is MBA programs are seeing is more graduates interested in nonprofit and government jobs. Here is one of the most illuminating segments of the article:

"Better than Nothing

      Business schools have already been seeing some movement toward nonprofit professions, though historically those students have been outnumbered by investment bankers and consultants. Few new graduates—4.4% last year—typically take positions in nonprofits or government, says Kip Harrell, president of the CSC and vice-president for professional and career management at Thunderbird School of Global Management. However, the financial crisis and the scarcity of six-figure offers, could accelerate the do-gooder trend. Patrick Perrella, the director of MBA career development at the University of Notre Dame Mendoza College of Business, broke it down this way: It's an easy decision "if your choice is a government job at a lower salary or no job at all."

    What I find interesting is how this is positioned as a cynical trend with students looking for jobs, period. I would hope that students who enter nonprofit and government service have a passion and an interest in their new industries.  As a taxpayer and advisor to several nonprofits, I would hate to think that these students are working in their jobs by default. 

     Something NOT mentioned in this article is the enormous cost of an elite/Ivy League MBA and the return on investment the student (and/or parents) get. Is it still a good "investment" if the job you get pays similar to one you could have gotten with just a bachelor's degree?

    Any comments from students who took a nonprofit or government job because it was available instead of their vision? Are you still okay with the cost and time you invested?

MBA Schools "Retooling Emphasis" and Business Grads With No Jobs

     I recommend those interested in high end business schools read this article about Wharton MBAs in Reuters.  It is an interesting analysis of two key problems facing business schools and their graduates.

     The first problem is many of the banks, financial houses and major corporations had CEOs and senior advisors who were graduates of some of the most elite business schools in the country.  Yet having degrees from the exclusive programs at Harvard, Yale, Wharton and others did NOT stop the melt-down, bank failures, etc.  As a matter of fact, many insiders are saying the pride and hubris of these elite graduates would not let them consider there could be downsides to their actions!

     This "failure to plan for failure" has led schools like Wharton to rethink the curriculum being taught.  Many of the major companies had used the programs and skills they learned in Biz schools to justify their flawed thinking. So schools are now looking at planning for downside assumptions and using the melt-down as a "teachable moment".  As an engineer, I was taught to ALWAYS plan for failure.  Makes me wonder if maybe tech geeks would make better managers to help lead us out of this crisis!

     This leads to the second problem which is the lack of jobs for graduates. The article presents the obvious reason which is the traditional employers are gone or in serious contraction.  But what was unsaid is many employers do not want to hire students whose predecessors have not done such a good job! 

     I don't think graduating from a name brand MBA program will become a "Scarlett Letter" that keeps graduates out of good jobs. But many companies are not giving graduates a "free pass" just because they came from an elite school.  I see more and more companies looking for "dirty hands" and experience in making things work and grow. I am recommending more internships, MLM/network marketing businesses, and/or running a business from a "dorm" to my students!

    Comments and experiences from recent graduates are welcome!

College Kids and Monkeys About Equal on Math

 "College Kids and Monkeys About Equal on Math" is an eye-catching title of an article posted by MSN Health today,  (PDF copy available here if it is missing from the MSN Site: LPT_PDF02142009).

Elizabeth Brannon, an assistant professor of psychology and neuroscience at Duke University is studying how human adults and infants, lemurs and monkeys think about numbers without using language. She is trying to identify which parts of the brain house "number sense" and the she is trying to determine how this math skills develop.

Among other things, she found college students and macaque have similar speed and accuracy (!) when doing a rough sort of math by summing sets of objects without actually counting them! As an engineer who speaks "math", I found it very interesting that math skills are apparently inherent to primates!

When I first saw the title I was prepared for an article on the sad state of math skills in our college students.  So while it didn't turn out to be that, it got me thinking about why students fight math when it is such a critical tool for college and life success.

I regularly have students tell me they are picking their college major based on NOT wanting anything with "math in it".  I have also lost count on the number of times one of my solid "B to B+" students ended up in a remedial math class in college - a situation which added time AND costs for getting their undergraduate degree!

I started my college planning career with college funding and scholarships, then added admissions, then majors and careers, and eventually added test prep.  But over the last 15 years it has become apparent that focusing on those 4 college-related steps with just high school juniors and seniors was not addressing the real needs of my client families.  Something was missing in their tool kits for success in college and for life!

Basic math skills are critical in the increasingly high tech economy.  Math is needed for personal financial literacy. A lot of our current economic problems can be blamed on people's inability to understand their personal cash flow. That is because virtually all the studies show our students are NOT getting what they need for math success.

I am not going to point fingers at anyone in the education "system" for failing to create math "literate" students. Blaming schools, teachers, parents, administrators, and/or the government is not the way to find solutions. Instead, I went looking for PROVEN TOOLS to make basic skills accessible and successful for more students regardless of the system.  I wanted to find something for teaching 21st century students using 21st century technology.

I am taking an engineering approach to building a SYSTEM for success in education available to anyone with internet access. I am proud to announce the launch on March 1 of a new initiative from Linda P. Taylor's Insider Secrets:  "Creating Access to Higher Scores and the Education Edge" (CAHSEE). 

CAHSEE is designed to pull together the tool kit that middle school, high school, college, and even adults need for learning success!  I want to give families access to the FUNDAMENTAL SKILLS we ALL need for a lifetime of success.  

I will soon announce the CAHSEE program for creating mastery in Math and English Language Arts (ELA).  But in the meantime, I want suggestions from readers about what other needs and especially what tools, programs, and systems you think should be included.  PLEASE send me comments, suggestions, ideas and referrals to make CAHSEE rock!

ERROR IN THE 2009-2010 FAFSA?

      The 2009-2010 Free Application for Federal Student Aid (FAFSA) contains could be a major problem in how parent and student assets are being defined.  The FAFSA Worksheet and the online FAFSA form both include UGMA/UTMA accounts in the definition of parent assets!  This is either an error or a complete redefining of what is to be included as a parent asset by the Department of Education.

      A UGMA/UTMA account is the way a minor owns financial assets until they are 18 or 21, depending on their state of residence. The asset is in “trust” to a guardian who is an adult responsible for managing the account for sole benefit of the child owner.  Most UGMA/UTMA accounts hold mutual funds, stocks or bonds in the child’s name and are usually managed by a parent or grandparent who gifted the original asset.

      Until this current 2009-2010 FAFSA, a UGMA/UTMA account(s) was listed on the FAFSA as athe filing student’s asset regardless of their age. The good news is redefining a UGMA/UTMA asset as belonging to a parent reduces and could even eliminate the impact of the asset for calculating the Expected Family Contribution (EFC)!  Unfortunately, the FAFSA then uses the exact same definition of an asset including UGMA/UTMAs for the student asset section of the 2009-2010 FAFSA.  This could lead to three potential errors for families filing FAFSAs:

1.  Listing the UGMA/UTMA as both a parent AND student asset thus counting the same asset twice for calculating the EFC,

Taxes and College Support

                  

                         I am seeing serious BIG time feedback on many blogs about taxation, patriotism and "critical" services!  With the  melt-down in the financial market combined with the higher taxes that will come with the "bailout" with the losses in home equity with [pick your own financial problem], we have ANGER coming from many taxpayers!  And it is growing. . .

     One of the items in today's Inside Higher Education is a little tidbit about the income tax ballot item in Massachussetts and how the state universities are reacting.  The article was predictable with university officials warning about cut-backs and higher tuition to make up the tax losses. But what I find the most interesting is the responses. Here's one from ProfessorMojo, SUNY-Plattsburgh (I've added bolding for emphasis):

     "As usual, the academics focus on their own livelihoods as opposed to examining the larger issue at hand. Certainly, some taxation is necessary, and few would argue against funding a state university system. However, the issue is the state government’s constant desire to suck more money from the taxpayer as opposed to being responsible stewards of the public treasury.

     We’re facing budget cuts here at SUNY, and it is noteworthy that my co-worker’s first reactions are to increase taxes and tuition as opposed to reforming the union-driven state spending practices that got us in this mess in the first place."

      I made no secret of my anger at the PORK inside the so-called bailout bill for the financial markets.  That pork will cost ALL of us more tax dollars and redirect them to places we as taxpayers have no say over!  I am ANGRY enough to support a ballot issue just like this for my home state of California AND for the nation over all!!!

      I think this brings up the reason for taxes.

     As I write this, there is a large brush fire in Northern L.A. County where the 118 and 210 freeways meet.  I listened to the City of LA officials point out that there are 1,000 firefighters on the line and that THIS IS WHAT TAXPAYER want from their government - protection of the people.

    I agree that colleges and universities are critical to the well-being of America as are many other essential services like roads and water. But where does the definition of "essential" that stop?

   This question comes from an article in Education Week that talks about the complaints about changes inside the Department of Education combining the Title I and Title III programs for English as a second language programs.  Obviously there are savings in combining the programs as well as oversight issues. But predictably, there are screams that "their" issues are so important that they "deserve" a separate agency.

    Just how many things can we afford to make "special"?  How many tax dollars can we afford to spend on what?

    I appreciate that everyone wants their special needs handled.  I understand it's easy to say mine's more important than yours.  But in TOUGH ECONOMIC times, you make priorities.  You cut back on things that are "nice" and things that might even be "important" and focus on what is essential.  But we need COMMON SENSE.   

   What do YOU think we should pay for?  Where should we say, yes, I know it's important but NOT as important as firefighters or colleges or ????

 

       

Limits on Political Speech at Colleges - Part 2

 

    Yesterday, October 2,  students and faculty at the University of Illinois at Urbana-Champaign held a rally to show support for the presidential campaign of Barack Obama. In addition to showing their support, the goal was to show that the faculty will not follow guidelines issued by the university that bar them from rallies or wearing political buttons on campus. (See the Chicago Tribune for great report on the event).

     Per the article, the university says it isn’t enforcing the guidelines, which it says are required by state law.

     I admit that bothers me more than the predictable reaction of the professors. Why tell your employees about a rule if you aren't planning to enforce it!  That is CYA hypocrisy at its best. If someone complains about the violations the state will point to the rules - "gee guys, not our problem if those independent thinkers at the college don't want to follow the rules".  The university will then say it is "working with the state to clarify their intention".  A perfect dance trying to have it both ways!

    As I predicted in my September 24, 2008 Blog, the professors say that the guidelines unreasonably limit their freedom of expression:

     "They're trying to control our bodies and our voices any time we're on campus. These policies are clearly a violation of our 1st Amendment rights," said Dan Colson, an English graduate student who, along with other students, professors and free-speech experts, has lashed out.  Colson and others argue the University of Illinois was unfairly expanding state law.

     Here is the phrase from Colson that summarizes this and other debates on what laws should we PRIVATE citizens and businesses follow that ACADEMICS should not.  Per Colson:

" . . . that academic freedom meant campus communities should not be held to the same standards as other state employees."

     I appreciate the need for "academic freedom" as the daugher of a retired college dean but no offense guys, I need freedom in my business too!  But I am NOT allowed to say and do things that you are allowed to say and do at your workplace.  I cannot voice or demonstrate my personal feelings on many social and political issues because it is often ILLEGAL. 

     Per the State of Illinois, you have been notified your "workplace" has rules on endorsing candidates that jepoardizes the workplace's tax-free basis.  Yet you have decided you know best and will not follow those policies.  I see your point and I agree and I disagree.

     You have the right of free speech BUT you give up some of that freedom in exchange for a job.  I agree that there needs to be a more flexible standard on campus to allow for frank exchanges in a classroom on topics of concern.  However, I do not see that as being extended to a PERSONAL demonstration of support as in a rally or wearing a button until you leave the workplace.

    This is an important issue that needs to be discussed.  Where is the line between academic speech and unlimited speech exist for a college campus and ITS EMPLOYEES?  Where is that line compared to my freedom of speech in my workplace?

     And even more importantly, should professors be allowed to flout the rules and policies of their employer (the taxpayer in this case since this is a STATE university)?  Should they be allowed to do things you and I cannot simply because of where they work and what they do?  Should "academic freedom" be so broad that they can break the law with impunity compared to you and I?

    Let's chat!  I want everyone's opinion - colleges and private citizens.

Pork Barrel Bill and Transparency by Blog

     You may or may NOT have heard about some of the shennanigans burried in the new "Relief" aka BAILOUT bill passed last night by "our" Senate from the "mainstream" media.  But no one else said anything including NPR other than "this was an important bipartisan bill" or showed the self-congratulating senators pushing to get to the microphone.  I saw just ONE outside expert commentator on Fox plop down a telephone book-sized bill that had evolved from Paulson's 3 page outline but he gave no details!  And the eMail alert I got from US News today also only summarized the high points that related to the crisis. 

       I was clueless about the bill's REAL details and contents until I started reading my morning blogs like "Don't Mess with Taxes".

     Thank you blogosphere!  Thank you "Don't Mess With Taxes!" and the 20 or so other blogs I subscribe to each day.  Yes, I know there are kooks and way-out-there blogs but there seems to be no where else to learn what is REALLY going on in our congress.  Blogs by citizens like me who share what they have learned seems to be the best place to learn what is really going on out there!

     Here's what got me so angry:  Did you hear about the arrow tax break provision? This little add-in waives the tax on child's practice arrows and costs taxpayers about $200,000 a year (enough to send 8 kids to UCLA free every year).  Granted, this is a very teeny tiny part of the NEW ADDITIONAL $108 billion (!) in businesses and individual taxpayer "sweeteners" that were added to make the bill pass.  BUT IT SHOWS how our politicians can't help but pork out everything -- something even as critical as this bailout bill!

    Politico lists some of the various "sweeteners" and their costs. While an kid's arrow tax may soon become great fodder for Saturday Night Live or Jay Leno, it is the poster child for PORK BARREL POLITICS.  The Senate sounding so serious about how critical their efforts were was nauseating this morning on the AM news.  They were all patting themselves on the back for a bi-partisan effort.  Yeah, bi-partisan means they both were equally adding pork!

    My client families and the members of the College Leadership Foundation's College eCoaching Club have been flooding us with questions on how to afford college with their savings and home equity cut or gone.  They want to know what they can do to pay for college while waiting on the "financial rescue" AKA "bailout" bill. Most think it will someone help them personally.

     My recommendation to these families is to call the House of Representatives and tell them to scrub out every ounce of pork.  Focus only on what Congress SAID was important to stabilize the financial industry if that is STILL as important as they make it sound.

    In my opinion, if this was soooo critical, they wouldn't have taken the time to stuff it like a goose full of special favors and little unknown tax breaks! 

     SO what are your feeling on this mess?  Mine can't be printed because it would scorch the screen I am so angry.  Pass this blog along so Google will pick up all your comments and maybe we can get the idiots  we elected to come to their financial senses!  STOP THE PORK BARREL POLITICS disguised as crisis!