Here & Now

Budget Would Eliminate Educational Approval Board

Frederica Freyberg:

In a similar vein, some are asking could it become like the Wild, Wild West of anything goes because the Governor's Budget eliminates the Educational Approval Board to “reduce the regulatory and fiscal burden on private for-profit education entities.” The board regulates for-profit colleges in Wisconsin. There are nearly two hundred fifty of them registered here, and they took in more than $350 million in tuition last year. Schools like Globe University, but also smaller, more specialized colleges and online institutions.

The Educational Approval Board met this morning on this change and, as you might expect, voted formally to oppose its own elimination.

The Board’s Chair is Don Madelung. He was appointed to the Board by Governor Walker in 2012.

Thanks very much for being here.

Don Madelung: Thanks very much for having me.

Frederica Freyberg:

Were you surprised when you saw this in the Governor’s budget?

Don Madelung:

I was. We were not notified by the Governor that from the Board — that we were going to be eliminated and I was contacted by the Executive Secretary, David Dies, that let us know it was in the budget. He sent us out some clippings. And I think it took the Board a little by shock.

Frederica Freyberg:

So do you agree that the forprofit college industry could become like the Wild, Wild West without your Board?

Don Madelung:

I do, from my perspective. I’ve been a Proprietary President in the past. I’m no longer. But I think this bill or elimination of the EAB is not going to cure what I think the Governor is hoping to do. is safeguard tech colleges, liberal arts colleges and universities from proprietary institutions.

With this option, they’ll just be able to come in, pay a fee. There won’t be any oversight from the State Regulatory Agency and, subsequently, they can set up their shingles and operate. And I think there’s going to be a proliferation of schools coming into the State. Even the proprietary schools are not going to like this.

Frederica Freyberg:

Under the Governor’s budget, the office of Department of Agriculture, Trade and Consumer Protection would handle complaints. How would that oversight be different from what this Board does?

Frederica Freyberg:

I think a great deal. I think that Agriculture is going to spend 95% to 99% of their time dealing with agricultural issues and complaints, and things that go on. I’m from rural Windsor, and I certainly have experience with that, but very little, and they won’t have anybody with experience that has had school background. The individuals that are on the Board staff, many of them have 20-years plus, and it’s hard to replicate that or replace that overnight.

Frederica Freyberg:

What's an example of an issue that required the EAB’s regulatory action?

Don Madelung:

Well, Everett College closed in Milwaukee. Corinthian College has recently ceased operation in the State. These students were left high and dry in many cases. They got a notification on almost the Tuesday that Friday they were going to close their schools and subsequently these poor students needed to have transition to other educational institutions. There is a there’s a funding set up that the schools pay into, like $1.5 million, that helps that transition for students. And the staff then was able to go into those institutions, calm things down, work with the students, work with the staff, keep the data going and statistical information that they needed and files. So vital. Absolutely vital.

Frederica Freyberg:

Meanwhile the $600,000 annual budget for the EAB is paid from fees to colleges it regulates based on those colleges’ profits. Who is the biggest college, in terms of profits, and how much did they pay in fees?

Don Madelung:

Well, I believe it was Globe University right now, is one of the largest.

They have several institutions around the state, and they probably revenue was probably in the $50 million area. Don’t quote me to the penny. They paid about $50,000 in fees. And the data is that $600,000 is divided by if you do the math– by the $350 million that’s produced from all institutions, that’s .0017 cents per institution that pays into the system. That’s very little money. So there’s no taxpayer money whatsoever that goes into the Educational Approval Board support.

Frederica Freyberg:

So the fiscal burden and the regulatory burden as the reason for the Governor getting rid of the Board, you don’t buy?

Don Madelung:

I'm not buying. I think there were a few individuals that got into the Governor’s ear or the Administration’s ear, maybe some individuals that have contributed over the time. We all do.

We all have made contributions in terms of lobbying and support.

But there were a good number of individuals that were at our Board meeting today and were asked if they wanted to comment, and they were all in favor of continuing the EAB. These are schools are average or bigger size. So, I think if you took a poll tomorrow, I think you’d find only probably a half a dozen schools that might be adamantly opposed to the situation.

Frederica Freyberg:

So should the Board, in the end, be eliminated, what advice do you give students who might sign up in the absence of its oversight?

Don Madelung:

Well, I don’t believe the Board should be eliminated, and students right now should continue as if the Board is still functioning. We still technically are going to be functioning until January1 or the end of the year. And beyond that, we don’t know. So we’re going to find out in the next three or four months as things are sliced and diced and made julienne fries out of the budget. I’ve had an opportunity to talk to a couple of Senators and Representatives, and many from the Republican Party, and they weren’t aware of this. They were surprised themselves that this was one of the cuts.

Frederica Freyberg:

All right. We need to leave it there. Don Madelung, thanks very much.

Don Madelung:

Thanks, Frederica.