Every crisis, as Rahm Emanuel once hinted, brings with it some unique opportunities. The need for drastic cuts in Texas’s higher education spending could be an opportunity for conservatives to rethink what they’re doing in fundamental ways, building the foundation for a leaner but more effective and freer higher education system. The “fat” years that higher ed has enjoyed over the last two decades — with spending up 74% per student since 1991 — have obscured the fact that the system is badly broken. Conservatives have tended to focus on the failings of K-12, but higher ed is both more wasteful and more dysfunctional. Consider:

There’s a simple solution to all four of these problems: return to the fundamental principles of competition and free choice. Let students vote with their feet. There are many fine private and religious colleges in Texas (Baylor, University of Dallas, Houston Baptist, and University of St. Thomas, among others) that do a great job of focusing on the education of undergraduates and that treat our American and Judeo-Christian heritage with respect.
Conservatives have tried unsuccessfully for years to pass vouchers for K-12. We already have vouchers for private colleges right now, in the form of Tuition Equalization Grants. Sadly, the GOP leaders in the House and Senate plan to gut the TEGs by 60% — in order, bizarrely, to protect the inflated earnings of the leftist administrators and professors who trash conservative values and principles on a daily basis. (They’ll suffer only a 7% cut.)

The leadership has it exactly backwards: let’s slash the general appropriations for state universities by 40-60% (that’s 8-10% of their operating budgets), freeze state tuition rates, and fully fund both Tuition Equalization (with private colleges) and TEXAS grants (with state schools) for all students who are adequately prepared for college.

At the same time, let’s pass a constitutional amendment diverting money from the Permanent University Fund to student scholarships, instead of squandering it all on the wasteful over-building of bricks and mortar in the age of the Internet.

We can also require state universities to encourage real competition and effective student choice within their campuses. Simply tie money to the number of students taught by each department and professor. As things stand now, there is no relation between the two. Some disciplines, like philosophy and Spanish, teach thousands of students with a handful of professors, while politically favored programs, like ethnic and gender studies, have abundant resources and few students. Professors now think of students as a burden and a nuisance to be avoided, not as a constituency to be attracted and served. Tying pay to students taught, even at the margins, would transform the culture overnight.

An even better step? Let each department discount its tuition rate on its courses, using price competition to rein in costs.

The competition will spur improvements in education at the state schools, which can easily raise the quality of instruction while cutting back wasteful spending on administrators, research, and unneeded student services. The increased aid going to directly to students, along with more choice and improved offerings at both private and public colleges, will win support for the GOP from the rising generation — support Republicans can hardly do without.