According to the DUCK TEST,
Higher Education is a Business
By Baylis
I grew up next to a farm where I would play with the farmer’s two kids several times a week in their barn, the farm-yard or their pastures. One day while we were playing in the farm yard, the farmer came trudging in from his corn fields muttering to himself. When he saw us playing he growled, “According to the Duck Test, that tractor of mine is a piece of junk.” We all knew what had happened. The tractor had broken down out in the field like it usually did every other week. However, I guess I had a puzzled look on my face and I muttered, “Oh.”
The farmer looked at me and said, “Son, do you know the Duck Test?” I hesitated a little and finally said sheepishly, “No Sir, I don’t.” The farmer, with a condescending glance said, “Well you really should, so let me tell you. When I see an animal in the farm-yard that looks like a duck, waddles like a duck, quacks like a duck, swims like a duck, and flies like a duck, I am very confident that animal is a duck.” I have never forgotten that explanation. It has come in handy a number of times since that day in the farm-yard.
The mantra within higher education for many years has been that education is not a business. For a well-reasoned argument showing how businesses must be businesses, I would refer you to the article by Milton Greenberg in the March/April 2004 issue of the EDUCASUSE Review, entitled “A University is not a Business (and Other Fantasies).” You may find it using the following link:
http://www.educause.edu/EDUCAUSE+Review/EDUCAUSEReviewMagazineVolume39/
AUniversityIsNotaBusinessandOt/157887.
Relying on the duck test, my argument is the following: Institutions of higher education must be incorporated by the state. They own property, pay taxes or users fees, have employees, who many times will form or threaten to form a union for bargaining power against an entrenched management known as the administration. These employees expect fringe benefits such as medical insurance and retirement plans. Institutions of higher education are required to pay FICA for all employees, including faculty. If the institutions didn’t pay FICA for faculty, the faculty would be required to pay FICA as self-employed individuals, making them businesses. Universities sell or collect money for products or services, called credit hours, rendered to individuals, compete for students (just like businesses compete for customers) and are definitely susceptible to market forces in recruiting faculty and students, . Just like a business, the expenses of a given institution of higher education can only exceed its revenue for a limited period of time. It doesn’t matter if the colleges are not-for-profit or for-profit, if their expenses exceed their revenue for too long, they can be forced to declare bankruptcy and close down. Institutions of higher education are required to undergo annual audits of finances including balance sheets and cash flow sheets. Institutions of higher education look, act and speak like businesses, so according to the duck test, I am very confident institutions of higher education are businesses.