Critics Blast For-Profit College Proposal

Critics Blast For-Profit College Proposal

Critics are railing against a proposed bill that would allow a private for-profit computer-science university to apply to establish a campus in Providence.

The legislation, sponsored by House Majority Leader Nicholas A. Mattiello, would bring Neumont University, a private school with a campus of about 330 students in Utah, to the city. The Board of Governors for Higher Education would have to approve the school’s application.

But some education officials have raised concerns over whether the state, which has long been opposed to for-profit schools, would be opening a door to more schools if it were to approve Neumont’s application. The for-profit college industry has often been criticized for high dropout rates and as GoLocalProv reported in November, fudging numbers on employment reporting.

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“We support the state's longtime historical perspective that for-profit universities have not provided the necessary quality and impact that our current system has,” said Dan Egan, the President of the Association of Independent Colleges and Universities of Rhode Island.

Sets Bad Precedent

The school wants to open leased space in downtown Providence in the fall of 2013 with about 80 students, and by 2016, projected enrollment is expected to be 523. The school aims to fill a demand in the state for employees trained for computer technology careers.

But Egan said Rhode Island’s colleges already offer “3.5 times the degrees [offered at Neumont] and 8 times the degrees in related fields.”

“The precedent that bringing in [the school] sets up is one we don't like,” Egan said.

Neumont, established in 2003, offers bachelor’s degrees in computer science, software and game development, business technology operation management and web design and a master’s degree in computer science. The school’s president, Edward H. “Ned” Levine, is a Rhode Island School of Design graduate and former executive at Johnson & Wales University.

Levine contributed $1,000 to General Treasurer Gina Raimondo’s campaign in 2010.

Red Flags

Mattiello said the school could help boost the state’s economy.

“With our strong focus on expanding the knowledge economy, Neumont University will be an excellent fit in Rhode Island. The presence of Neumont’s Providence campus will be a real boost for the state’s economy and will prepare highly skilled graduates in the growing field of computer sciences and software, web and game development. The synergy with the type of jobs we are attempting to attract in our state will be tremendous,” he said.

Neumont estimates that it will invest $2.8 million in the Providence campus by 2016. The university projects its full-time equivalent employment in the state at that time to be 263, and its total economic impact in Rhode Island by that time will be about $24.8 million. As an employer and a tax-paying entity, it estimate that it would generate about $219,500 in income taxes for the state by 2021, and about $638,200 in property taxes for the City of Providence.

But National Education Association Government Relations Director Patrick Crowley agreed with Egan, suggesting that lawmakers should take a hard look at the school before voting to bring it to Rhode Island.

“The record of private for-profit colleges on issues like student debt default and the pass through of public money into private hand should raise serious red flags for decision makers at all levels of government,” Crowley said. “Neumont University’s own record of broken promises to its students in Virginia and Utah should warrant extra scrutiny before any laws are changed in Rhode Island.”

 

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