- The Wisconsin legislature’s budget committee voted against a proposal by Gov. Scott Walker to eliminate a state agency tasked with regulating for-profit colleges.
- The Wisconsin State Journal reports that the agency collects all of its operating expenses from the for-profits it regulates, returning about 10% of its revenue to the state.
- Walker first introduced the proposal as a way to relieve for-profit colleges from regulatory burdens, but the legislature rejected it with opponents arguing other agencies could not absorb its oversight duties, according to the article.
At a time when for-profit colleges are being vilified from coast to coast for unsavory recruitment practices, poor student outcomes, high tuition costs, and disproportional student loan default rates, it is not surprising the Wisconsin legislature decided against eliminating an agency tasked with monitoring this sector. Especially given that the proposal would not save the state any money, it is incredible Walker introduced it at all. Supporters of the for-profit sector, however, have a point when they argue these colleges are subjected to scrutiny and regulatory burdens their nonprofit peers do not have to deal with.