I would love to know where the rest of the money goes

Bob Samuels has an interesting article called The Solution They Won't Try. His main point is that public universities can pick up a lot of extra money by accepting more students. The point I found most fascinating was in these two paragraphs:

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To calculate how much public research universities spend on educating each undergraduate student, we can look at national statistics regarding faculty salaries and how much it costs a university to staff undergraduate courses. According to a recent study by the American Federation of Teachers, "Reversing Course," the average salary cost per class for a tenured professor at a public research university is $20,000 (4 classes at $80,000), and it costs $9,000 for a full-time non-tenure-track teacher and $4,500 for a part-time instructor to teach the same course. Using these averages, we can determine the annual instructional cost for each student by considering the number of classes each student takes in a year and how much each individual course costs. Since we know that only a third of undergraduate courses are now taught by professors, and the other courses are taught by non-tenured faculty, we can calculate the per student cost, but we first have to determine the average class size to do this calculation, and this is the analysis that I believe no one has ever done.
Looking at transcripts from several public research universities, I have determined that the average annual course load for a student is six large classes (averaging 200 students) and two small courses (averaging 20 students). Next, by using the national faculty average salary per class, and determining who actually teaches the courses (1/3 professors, 1/3 full-time non-tenure-track faculty, and 1/3 part-time faculty), we find that the total average annual instructional cost per student is $1,456 (each large class costs $56 per student and each small class costs $560). In other words, public universities charge on average $7,000 per student and they get another $8,000 per student from the state, but in reality, it only cost about a tenth of this amount to teach each student.
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For me the key point is public universities have to pay out about $1,456 a year to teacher's salaries for each student, but the universities collect about $15,000 each year.

Where does the rest of the money go? I'm sure there are some reasonable administration costs. I know it costs some money to maintain the buildings and the grounds. But that shouldn't account for more than a couple thousand dollars a year per student.

Where does the remaining $10,000 a year per student go? Has anyone seen a good pie chart on the break down for where the money goes?

Keep in mind that this is happening while the cost of a college education is climbing three times faster than inflation.

(Hat tip: Instapundit)


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