From the President

On April 22, I was among the first leaders in higher education to sign “A Call for Constructive Engagement.” The open letter, issued by the American Association of Colleges and Universities (AAC&U), is a direct response to the recent negative turn in relations between higher education and government. I want to elaborate here on why the health of that relationship is so important—and to ask for your help in making the case for our work.

The media has focused much of its higher education coverage on the importance of large universities to the nation’s research capacity, health care system and economic innovation. Meanwhile, liberal arts schools like Williams do the equally vital work of introducing students to the variety and depth of human knowledge as they live together in a small community. Studies show the positive impact of a liberal arts education on lifetime earnings, reported happiness and other measures. An education rooted in community also fuels graduates’ civic engagement and societal contributions—a strength that traces back to the classical origins of the liberal arts and its rebirth during the Enlightenment. That spark of mutual commitment endures today: Consider how many Williams graduates hold public office or leadership roles, or work as teachers, health care providers or advocates, across all issues and political viewpoints.

Recently, though, public attitudes toward higher education have soured. Critics allege that schools have failed to translate our work effectively for broad audiences, been too politically one-sided or intolerant of debate and outpriced the finances of most families. What often go unacknowledged are the progress we have made on these issues and our agreement that more must be done.

In the past, educators would have turned to the government as a potential partner in the effort to improve. Sadly, this is now almost impossible due to sweeping federal layoffs and a very punitive approach from the current administration. As a result, we are now at considerable risk of losing ground in educational excellence and access.

Consider the example of endowment taxes. The Tax Cuts and Jobs Act of 2017 imposed a 1.4% tax on the returns of the nation’s leading higher education endowments, including Williams’. Congress is now considering proposals that would increase that tax to anywhere between 10% and 35%, framed as a punishment in response to concerns about campus politics. These increased rates would, if passed, require Williams to pay roughly an additional $8.5 million to $30 million per year.

Why focus on the impact of a potential endowment tax on Williams in an essay about higher education’s value to society?

The Endowment Is How We Make Williams Excellent

Our academic quality is rooted in our ability to recruit and retain world-class scholars and artists who are also gifted teachers. To offer high-level research opportunities, top-tier varsity athletics and recreational programs, engagement with the arts, and more—all backed by a distinctively low student-faculty ratio and culture of close mentoring.

More than 60% of the annual budget for this work is paid from endowment returns. Endowed gifts also help us create exciting new offerings like our Global Scholars program (global-studies.williams.edu/global-scholars) and bring in important guest speakers to engage students on issues of the day.

The Endowment Is How We Keep Williams Affordable

This education, labor-intensive by design, costs Williams roughly $140,800 per student, per year. Charging the “true cost” to families would put a Williams education out of reach for all but a few. That’s why we defray the cost for everyone and especially for the more than half of our student body that qualifies for financial aid. Williams is now tuition-free for most families earning $200,000 per year or less. We make room and board free to most of them as well. Individual circumstances vary widely, but on average, aided families pay $15,300 annually. How can we provide a $140,000 per year education at an average of 10% of the cost? The difference—including $92 million per year in financial aid—comes overwhelmingly from endowment returns and expendable gifts.

Endowment taxes redirect donated funds—like those intended to help students afford college—into federal coffers. If any of the current tax proposals were to pass, our resulting annual tax payments would equate to a loss of the funds used for purposes such as providing financial aid. One impact: Per student funding could decrease by anywhere from $4,250 to $15,000—a substantial amount compared to the average $15,300 per year that aided families currently pay.

At Williams, we know the best way to address such challenges is to bring together people of diverse perspectives and try to solve the issues collaboratively. As we often remind our students, progress requires  rst getting everyone around the table. It is heartening to consider the large number and variety of institutions that united to sign the AAC&U letter. (As of May 5, the number was 612 signatures and counting.) But with regard to the government, we are far from that ideal right now.

Fortunately, many alumni and family members have asked, “How can I help?” The single most important thing you can do is build appreciation for higher education. Talk to everyone you know about the bene ts of your experience at Williams (or any other school you attended). We have a multivocal community, and you do not need to gloss over your concerns. I only ask that you decide for yourself what matters about college and share those views as widely as possible. If you are disposed to write op-eds or contact your legislators (find them at www.usa.gov/elected-officials), we welcome that help.

At a time of wavering public and government support for higher education, what matters is that we, the people, speak up for the human project of teaching and transmitting knowledge to the next generation as part of their preparation for life.

Education is the promise of our future. It is the way we cultivate our humanity and try to solve society’s problems. It is also the heart of what unites us at Williams. Let us work together to protect and improve it.

Maud S. Mandel

Read the full letter from the AAC&U at www.aacu.org/newsroom/a-call-for-constructive-engagement.